Chain Leader

David Farkas

Tricks of the Trade
January 22, 2007

Former Starbucks exec Arthur Rubinfeld returned my call a few days ago. Turns out he doesn’t know Chin-Koo Chung, the former general manager for Starbucks Korea. Chung opened the (then) world’s largest outpost in 2000. I was writing about Chung’s current efforts with Cold Stone Creamery and figured Rubinfeld, who oversaw the development of nearly 4,000 Starbucks in the United States, might have met Chung at some point. But no, Rubinfeld didn’t know the guy. He had missed him by a year it turns out.

Nonetheless, Rubinfeld wanted to talk about business. His current employer, Chicago-based Potbelly Sandwich Works, where he is chief development officer, is expanding nicely, he said.

Rubinfeld reminded me he’s also an author. His book, Built for Growth, explains how several companies—including Potbelly—successfully managed their expansion.

I asked him, given his real-estate expertise, to offer a couple of tips on negotiating with landlords. Here’s what Rubinfeld had to say:

• “I always counsel our people to have a face-to-face meeting whenever possible, and not to rely on phone calls and e-mail.”

• “You have to have a win-win attitude. ‘So maybe I can’t give you that, but I can give you this.’”

• “Get in early. You may work your target list for years. Landlords will remember you.”

• “Always seek a location that speaks to your brand positioning.”

He also offered a good example of tenant leasing: The Ferry Building in San Francisco’s Embarcadero, which was renovated in 2003. “That’s good tenant merchandising,” Rubinfeld declared, referring to the mix of businesses that includes a dozen restaurants.

Posted by David Farkas on January 22, 2007 | Comments (3)