Stores - September 2006 - (Page 42)

REAL ESTATE Banking on Prime Locations Consolidation in the finan- cial industry yields surplus A of quality sites BY JANET GROEBER tlanta-based Chick-fil-A has been on a steady growth curve. The he concedes, but the competitive retail q u i c k - s e r v e restaurant known for its chicken sandwiches, fresh- real estate market has broken his way a squeezed lemonade and waffle fries has migrated beyond its South- bit this year. Dominguez cites, for exam- ern roots and onto the national stage, with recent forays into Califor- ple, a handful of former Krispy Kreme nia and the Chicago metropolitan area. units that are being converted to Chick- fil-A stores in Pennsylvania and Califor- The company also is celebrating a milestone this year: Founder S. Truett Cathy nia. opened his first restaurant, the Dwarf Grill in Hapeville, Ga., 60 years ago. If Krispy Kreme's recent woes spell op- The mall boom of the '70s and '80s afforded Chick-fil-A a way to expand while portunity for Chick-fil-A, so, too, does minimizing real estate costs. As traditional mall growth slowed to a crawl, however, consolidation within the banking indus- the privately-held, family-run company decided to pump up its freestanding store try. That's one reason Dominguez began count; the franchisor also licenses its concept to foodservice operators in high-traffic working with American Financial Real- places like airports and schools. ty Trust, a Jenkintown, Pa.-based real Today, Chick-fil-A is the nation's second-largest quick-serve chicken chain with estate investment trust REIT that spe- 1,250 locations in 38 states and Washington, D.C., and is definitely in the mood to cializes in acquiring, leasing and selling Bank consolidation = keep growing. The company expects to add retail opportunity more than 72 locations this year, includ- ing 61 freestanding units. Vacated branches are available for It's steady growth, says Alex lease or sale Dominguez, Chick-fil-A's senior di- Banks are located in densely popu- rector of real estate. Finding dozens lated or rapidly expanding regions of quality sites each year Many are restricted from lease or is extremely difficult, sale to other banks 42 S TO R E S / SEPTEMBER 2006

Table of Contents for the Digital Edition of Stores - September 2006

Executive Editor's Page
President's Page
NRF News
Retail People
Cover Story: Sights Set on the Subcontinent
Data Management
In-Store Applications
Real Estate
Human Resources
POS Systems
System Security
Asset Management
In-Store Promotion
Call Centers
Order Fulfillment
Loeb Retail Letter
ARTS Update
Workplace Law
Advertisers Index
Company Index
Retail Profit Scoreboard
Retail Industry Calendar

Stores - September 2006