The Importance of Revenue Per Square Foot for Retailers

Dunkin DonutsBy Southpace Broker Andrew Loveman, CCIM

As a broker with an emphasis in retail, I was interested by a recent article on YAHOO! Finance that took a deeper look into the importance of using revenue per square foot as a success measure. In particular, this article chose Darden Restaurants, Inc., a leading company in the United States with some of the most recognizable brands in the industry such as Olive Garden, Red Lobster and Seasons 52, as its primary example of illustrating why revenue per square foot is the best way to determine the success of each restaurant. The article also goes on to discuss this as to whether Darden should pursue another “premium” cost or “lower end” cost concept.

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