Quote:
Originally Posted by mulligan
Part of the problem here is the way the leases are written. Toscani's Pizza is a good example. They would love to expand their deli business, and I'll bet they would do very well, but their lease says they cannot sell deli meats and cheeses. Publix forced the developer to write out any competition. I'd rather have the deli, and lose publix.
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I was in the restaurant business years ago. (Yes, a pizza shop!)
That is called a non-compete lease, and it is VERY common in retail spaces.
If you had a pizza shop in a strip center, would you like another one opening next to you in the same strip? Or the tuxedo shop allowed to make pizza?
Sometimes these leases "choke" the strip center themselves, because a big "anchor" will want to be allowed to sell everything (Walmart?) thus killing its "neighbors".