Thursday, March 20, 2008

The Randomness of Creative Energy:

“Persistence isn't using the same tactics over and over. That's just annoying.

Persistence is having the same goal over and over.” Seth Godin

Why are some areas exciting, uplifting, energizing while other are dreary, demoralizing and dull? My theory is that large regional malls have an actual marketing plan. Mall operators have a sense of the type of mall they want be and then actively trying to find tenants that fit that demographic. The result is usually positive because they control all the variable elements. A casual dining tenant is needed in space (B1), not a dollar store. Large malls have the advantage being able to construct the puzzle from scratch and fill in all the pieces.

Smaller strip malls and city blocks have a diametrically opposite problem. There is an outdoor mall close to my home where the landlord has devoted absolutely no energy toward developing a cohesive business plan for the site. My estimation is that if the tenant can pay the rent, even if they can not fog a mirror, the landlord is willing to slot them into the next available space. The problem becomes more complicated in a downtown area or city commercial block where multiple landlords have their own financial considerations to deal with and do not care about the whole of the area. Local business councils have tried to influence tenant decisions however their reach is very limited. Tenant decisions are very critical to whether an area has creative energy.

Social Proof is so pervasive and necessary that a restaurateur must consider that element in the location discussion. I have previously related the story, “that there are two restaurants next to each other, both empty. The first person walks up sees that both restaurants are empty and chooses to enter the one on right. The second person walks up and sees that there is no one in the restaurant on the left and one person in the restaurant on the right. That person chooses to enter the restaurant on the right because of social proof. Before long there are 100 people in the restaurant the right and nada, zip, no one in the restaurant on the left.” People want to be where other people are.

If the location of your restaurant is surrounded by a preponderance of unoccupied or uninviting locations, you are not increasing your odds of success. The social proof theory would argue that you are judged by the energy about you. The essence of this discussion is “that you are known by the company you keep.” Conversely your restaurant might be the catalyst for creative energy flowing into an area.