Tuesday, August 28, 2012
Eataly Performs Above Expectations, So The Plan Is To Open More Stores
I wasn't the biggest fan of Eataly the first time I visited because when I walked in I felt like I was stepping into an unfinished painting, and I guess that's not always such a bad thing. It needed time to jell, to figure out exactly what it should look like, how it should flow, and by the time of my second visit it had already begun the transformation.
Fast forward to the present where the 2 year old establishment has really carved out a niche for itself in the food service and grocery industry, bustling with regulars and tourists from open to close. In just it's first year of operation Eataly had a gross revenue of $70 million dollars, a staggering amount considering the economy and the average price of goods sold there. Projected second year earnings are even greater at $85 million, so you can see where this is going.
Already Eataly is looking to open new shops in Chicago, Los Angeles and Sao Paulo, Brazil...just to name a few. The Chicago space is extra intriguing because they plan to have even more restaurants than the Manhattan store and that already has seven.
Whether you are a fan of Eataly or not this is really great news for the industry and even the economy. It shows that people are willing to pay a higher price for a premium product, but we are talking about New York City after all. New York is an enigma and just because it's been a rousing success here doesn't mean it will be everywhere else. That's why I think it's smart not to move too fast and by picking well established markets like LA and Chi-town to be their next openings, they will almost certainly assure themselves of two more successes....