We all have examples of places like these in our cities where businesses move in only to drop like flies one after another.

 

Take for example that coffeeshop which is already in it's third incarnation on Gay & 3rd here in Downtown Columbus. (First version pictured below before closing to become Coffee & More and now Rendezvous Cafe, which at least a has a small Jamaican food menu)

 

 

Doesn't really help when there's already a very established local coffee shop (which just cut it's closing hour from 5 to 4) and two well-known chains just around the block. I would vote for a bar with a unique atmosphere. It's a tiny space, but they have successful, even smaller ones in Tokyo (of course) where there's only seating for a handful of people (there's seating for twice that here). It's got one of the best views of Downtown and speaking of Tokyo, there is some demand on CU for an Izakaya, which would serve as a one-of-a-kind destination. Of course, being so small it would probably need to have a very limited menu, but I don't see that being a problem.

 

So fellow UOians, share an example (or ten) and what you'd like to see there that may or may not work.

 

Dead zones

 

Are there bad locations -- or just bad businesses?

 

By Sara Pepitone  October 13, 2009: 10:38 AM ET (Fortune Small Business) --

 

We've all seen retail locations that appear cursed because multiple businesses have died there. So how do you prevent your business from becoming the next victim?

 

Real estate brokers are more likely to point the finger at an entrepreneur than at a location. "We don't believe in curses," says Michael Ohmes, executive vice president of brokerage services at Minneapolis-based NorthMarq Capital. "If you have a series of failed businesses, there can be a stigma, but unless you have inconvenient parking or one-way streets, it's not the fault of the real estate."

 

http://money.cnn.com/2009/10/10/smallbusiness/bad_business_dead_zones.fsb/index.htm

 

I say its a bad business plan.  Move into an area with needs and develop your STP on the immediate needs and tweak your LTP on current trending for future needs. That is especially important in neighborhoods with changing demographics.

I think part of the problem is that small business owners are more preoccupied with what they want and not what the market wants.

 

Locations can be cursed due to factors such as high crime, lack of access, lack of visibility, population loss, etc. but there's nothing inherently wrong with 3rd and Gay. If the coffee shop is in its 3rd reincarnation it could be because there simply isn't much of a demand for coffee shops downtown - meaning they have to compete harder, or maybe these establishments just have poor management. Many people think restaurants close because an area just isn't hot anymore when in fact it's just poor/corrupt management causing the turnover.

^Coffee just costs too much.

Don't forget that tons of small businesses close for personal, non-financial reasons.

 

  I can think of two sites that have been mostly vacant for the last 10 years, and each one has had at least 3 business startups that occupied the space.

 

  One is a particularly small site in a sprawl area. There is no pedestrian traffic to speak of. It is on a very busy street, but the site does not have enough space for parking. Clearly there is something wrong with the real estate here. Just this week the building was finally torn down. I wonder what will be next?

 

  The other is on a very busy corner in a traditional core area. One of the two streets is one-way, and the other has no parking. It is a very busy bus stop. I think that the massive number of drivers have no use for the site because there is no convenient parking. I also think that potential customers are intimidated by the people waiting for the bus. In any case, it has had at least 3 start ups over the last decade, and all of them have failed within a year.

 

  So, I think that there are, in fact, bad locations.