Trader Vic's Portland Oregon (New), Portland, OR (restaurant) FIRE March 2, 2016. Closed permanently - Locating Tiki

DC Dr. Coruba Tiki Socialite Joined: Jun 02, 2008 Posts: 333	DC Dr. Coruba Posted posted on Sun, Mar 20, 2016 11:27 AM Mahalos to Hang10 for the great set of photos. It is now as close to being there as we who missed out can get. Just some perspective on the rent costs. From what I have read, this unit was 8,000 square ft, which breaks down to $30 per sq. ft. Rates are very, very relative. Around my area, DC suburbs, that would be on the low end of average for the trendy neighborhoods. Looking at commercial real estate listings for Portland, $30 looks to be on the high side of average. As for the 6K to Vic's, not knowing all the details about a TV franchise, I'd have to say that something is fundamentally flawed with their franchise arrangement. In the US since 2000, 10 Trader Vic's were optioned. With Portland's closing, not a single one of them remain open. The longest run was Palo Alto that lasted 11 years, and the overall average is 4 years from open to closing (worth noting because a lot of initial lease terms are for 5 years - it suggests that many of these locations folded their tents rather than renew their leases). It is sobering to see such a failure rate. Trader Vic's has probably reached a tipping point where anyone even thinking about franchising in the US would see that and run. Unless TVHQ really overhauls their business model with something that has a greater chance of success, and it may be too late already, I doubt we will ever see another location ever open in the US.

Mahalos to Hang10 for the great set of photos. It is now as close to being there as we who missed out can get.

Just some perspective on the rent costs. From what I have read, this unit was 8,000 square ft, which breaks down to $30 per sq. ft. Rates are very, very relative. Around my area, DC suburbs, that would be on the low end of average for the trendy neighborhoods. Looking at commercial real estate listings for Portland, $30 looks to be on the high side of average.

As for the 6K to Vic's, not knowing all the details about a TV franchise, I'd have to say that something is fundamentally flawed with their franchise arrangement. In the US since 2000, 10 Trader Vic's were optioned. With Portland's closing, not a single one of them remain open. The longest run was Palo Alto that lasted 11 years, and the overall average is 4 years from open to closing (worth noting because a lot of initial lease terms are for 5 years - it suggests that many of these locations folded their tents rather than renew their leases).

It is sobering to see such a failure rate. Trader Vic's has probably reached a tipping point where anyone even thinking about franchising in the US would see that and run. Unless TVHQ really overhauls their business model with something that has a greater chance of success, and it may be too late already, I doubt we will ever see another location ever open in the US.

Post #761160 by Dr. Coruba on Sun, Mar 20, 2016 11:27 AM