!"#$%& (%")*+*,*&- .

/%#/*%0
122345267 89:;7 9<= 6>?:2?!9<8> 4698>


















uecember 2012


repared for:
8enalssance uownLowns, LLC
lalnvlew, n?

8y:
CommunlLy Land use + Lconomlcs Croup, LLC
ArllngLon, vA
1

!"#$%& (%")*+*,*&- ./%#/*%0
122345267 89:;7 9<= 6>?:2?!9<8> 4698>

PunLlngLon SLaLlon, n?


2/%#/*%0
Members of Source Lhe SLaLlon have nomlnaLed and shown sLrong supporL for developmenL of a
comblnaLlon bookshop, cafe, and performance space ln PunLlngLon SLaLlon. 1he !"#$%& ()&
!(*(+", reLall campalgn webslLe descrlbes Lhe proposed buslness Lhls way:

AfLer Lalklng Lo many PunLlngLon SLaLlon resldenLs, we have seen LhaL Lhere ls
a vold ln Lhe sLudenLs and young professlonals of our Lown. We have a loL of
commuLer sLudenLs ln PunLlngLon SLaLlon who feel dls[olnLed from Lhe
lnLellecLual communlLy aL Lhelr schools. ?oung professlonals have no place Lo
have meeLlngs or round Lables wlLh oLher forward Lhlnklng frlends.

WhaL lf we could provlde a place for sLudenLs and all people Lo meeL and
sLudy? lmaglne a beauLlful place of our own LhaL ls a booksLore, cafe and eaLery,
and a performance space all ln one! 1hls shop would be Lhe perfecL place for all
PunLlngLon SLaLlon resldenLs.

Llke many cafes garnered for sLudenLs and Leachers, Lhls sLore could be opened
for laLe nlghL sLudy sesslons. lL would sell books, Cus, uvus, and glfLs as well as
hlgh quallLy food and drlnks. Wlfl and wlde open dlverse seaLlng opporLunlLles
would make lL conduclve Lo worklng or hanglng ouL. ?ou could camp ouL Lhere
durlng flnals week and have breakfasL, lunch, and dlnner whlle sLlll en[oylng Lhe
company of fellow sLudenLs!

AddlLlonally havlng an enLerLalnmenL space would allow local arLlsLs,
muslclans, poeLs, and speakers Lo enrlch PunLlngLon SLaLlon wlLh Lhelr LalenL.

2
1he shop would be a cenLer for growLh and en[oymenL for our communlLy of
PunLlngLon SLaLlon!"

1hls reporL explores Lhe feaslblllLy of such a buslness and provldes suggesLlons on how lL mlghL
operaLe.


8.@A%B& B#.(*,%
1here are scores of resLauranL/booksLore comblnaLlons ln Lhe uS and LhroughouL Lhe world. 1he
comblnaLlon usually works well, for several reasons:

! 1he booksLore offers a dlsLracLlon for people walLlng for a dlnlng Lable.
! 1he resLauranL generaLes a sLeady sLream of fooL Lrafflc (and poLenLlal cusLomers) for Lhe
booksLore.
! 8y readlng a book, magazlne, or newspaper, people feel more comforLable dlnlng alone -
so, Lhe resLauranL ls able Lo aLLracL more solo dlners Lhan lL mlghL normally aLLracL.
! 8ooksLores LhaL use wall-mounLed bookshelves, raLher Lhan freesLandlng shelves or sLacks,
use very llLLle square fooLage and are Lherefore a loglsLlcally easy sub-LenanL for a
resLauranL Lo accommodaLe.

ln recenL years, resLauranL/booksLore comblnaLlons LhaL also lncorporaLe enLerLalnmenL space
have popped up around Lhe uS. Cne of Lhe earllesL and besL-known ls 8usboys and oeLs, a
resLauranL ln WashlngLon, uC. Cwned by an experlenced resLauraLeur and amaLeur arLlsL,
8usboys and oeLs ls prlmarlly a resLauranL. 8uL lL lncorporaLes oLher componenLs, as well:

! lL leases Lhe exLerlor walls ln lLs enLry space Lo a booksLore operaLed by a naLlonal nonproflL
organlzaLlon, 1eachlng for Change.

! lL uses oLher walls ln Lhe resLauranL as gallery space Lo exhlblL Lhe owner's and oLher local
arLlsLs' arLwork. 1he resLauranL recelves a commlsslon on arLwork sold.


3
! A large room (wlLh a small sLage) ad[acenL Lo Lhe dlnlng room ls used almosL every nlghL for
enLerLalnmenL - someLlmes readlngs/dlscusslons by auLhors whose books are feaLured ln
Lhe booksLore, someLlmes poeLry slams, someLlmes llve muslc. When Lhe room ls noL belng
used for performances, lL can be used as overflow dlnlng space, lf needed. 1he resLauranL
also renLs Lhe room Lo lndlvlduals, buslnesses, and organlzaLlons for prlvaLe funcLlons, wlLh
Lhe resLauranL caLerlng Lhese funcLlons.

! lL offers several large, communal Lables and some sofas and easy chalrs near Lhe fronL door,
wlLh free wlfl, so LhaL people can casually work whlle dlnlng.

8usboys and oeLs has now expanded lnLo Lhree addlLlonal locaLlons ln WashlngLon, uC and lLs
suburbs. Lach one lncorporaLes Lhe same componenLs.

Some resLauraLeurs have reporLed LhaL offerlng free wlfl encourages people Lo llnger Loo long
over coffee, prevenLlng oLher cusLomers from belng served. lor example, Lhe ALomlc Cafe, ln
8everly, MassachuseLLs, has ellmlnaLed wlfl ln order Lo dlscourage people from llngerlng for
hours wlLhouL buylng meals. CLher resLauranLs llmlL wlfl use Lo 60 mlnuLes.


>C*)&*@D +..$)&.#%)7 #%)&"E#"@&)7 "@F %@&%#&"*@G%@& /%@E%)
WlLh Lhe excepLlon of a ChrlsLlan booksLore, Lhere are no booksLores, resLauranLs, or
enLerLalnmenL venues wlLhln pracLlcal walklng dlsLance of Lhe Lraln sLaLlon. 1he larger area
conLalns several booksLores, numerous resLauranLs, and several enLerLalnmenL venues.

1..$)&.#%)H romesas ChrlsLlan 8ook SLore (1342 new ?ork Avenue) ls Lhe closesL booksLore Lo
Lhe Lraln sLaLlon. 8ook 8evue (313 new ?ork Avenue, ln PunLlngLon) ls a long-esLabllshed and
renowned famlly-owned booksLore. CollecLors klngdom (202 WesL !erlcho 1urnplke), abouL 1.8
mlles from Lhe Lraln sLaLlon, speclallzes ln comlc books. Llbrerla CaLollca (231 Wall SLreeL, ln
PunLlngLon) speclallzes ln Spanlsh-language rellglous books.


4
?%)&"E#"@&)H Marla's lamous lzza Chlcken (1044 new ?ork Avenue), Ll lcacho (1026 new ?ork
Avenue), and Colden ClLy Chlnese klLchen (933 new ?ork Avenue) are Lhe closesL resLauranLs Lo
Lhe Lraln sLaLlon.

>@&%#&"*@G%@& /%@E%)H 1here are a number of enLerLalnmenL venues wlLhln Lhree mlles of Lhe
Lraln sLaLlon, lncludlng 1he aramounL (370 new ?ork Avenue, ln PunLlngLon), Murder MysLery
(a dlnner LheaLre, aL 18 Pollywood lace, ln PunLlngLon), 300 Long lsland (a soclal bowllng alley
wlLh upscale food, ln Melvllle), AMC Shore 8 movle LheaLre (37 Wall SLreeL, ln PunLlngLon), and
Clnema ArLs CenLre (423 ark Avenue, ln PunLlngLon).

1here are several buslnesses wlLhln Lhe 1own of PunLlngLon LhaL comblne more Lhan one of
Lhese producL llnes. lor example, 8ook 8evue offers a healLhy calendar of auLhor
appearances/book slgnlngs and oLher speclal evenLs. And Murder MysLery ls essenLlally a
resLauranL offerlng scheduled enLerLalnmenL.


!"#$%& F%G"@F
ln esLlmaLlng markeL demand for a comblnaLlon booksLore, cafe, and performance space, we
explored markeL demand for Lhese Lhree producL llnes:

! 8ooks, magazlnes, and newspapers
! 8esLauranL meals (lncludlng alcohollc beverages consumed ln resLauranLs)
! Llve enLerLalnmenL (movles, LheaLre, oLher non-sporLs LlckeLed evenLs)

uslng daLa from Lhe 2010 -&,.#. "/ 0"1#2*(+", and Lhe 2010 -",.#3&$ 451&,6+(#$& !#$7&8, we
examlned Lhe markeL demand for Lhese producL llnes by PunLlngLon SLaLlon resldenLs, 1own of
PunLlngLon resldenLs, Ll88 commuLers whose Lrlps begln or end aL PunLlngLon SLaLlon, and Ll88
commuLers from sLaLlons easL of PunLlngLon SLaLlon on Lhe orL !efferson branch. lor each of
Lhese producL llnes and markeL groups, we flrsL esLlmaLed Lhe LoLal amounL of markeL demand -
e.g., Lhe LoLal amounL of money LhaL people ln Lhese Lhree cusLomer segmenLs are llkely Lo
spend ln each of Lhese caLegorles over Lhe course of Lhe year. We Lhen developed esLlmaLes of

3
how much of Lhls markeL demand a new buslness ln PunLlngLon SLaLlon LhaL comblnes Lhese
Lhree producL llnes mlghL reallsLlcally expecL Lo capLure, Laklng lnLo conslderaLlon facLors such
as Lhe amounL exlsLlng buslnesses ln Lhese caLegorles appear Lo currenLly be capLurlng, Lhe
demographlc characLerlsLlcs of Lhe area, and slLe accesslblllLy.

1he amounL of poLenLlal reLall sales LhaL a buslness mlghL reallsLlcally capLure ls affecLed by
many more facLors Lhan Lhe amounL of reLall demand LhaL appears Lo exlsL for a producL or
servlce. ln parLlcular, Lhe amounL of poLenLlal sales LhaL mlghL be capLured by a buslness are
affecLed by Lhe managemenL and markeLlng skllls of Lhe buslness owner and sLaff. We Lherefore
also consldered Lhe markeL demand Lhls new hybrld buslness mlghL be llkely Lo capLure
(assumlng good managemenL and markeLlng, adequaLe caplLallzaLlon, and oLher sound buslness
pracLlces), based on mlnlmal, moderaLe, and aggresslve levels of markeL peneLraLlon.
Mlnlmal", moderaLe", and aggresslve" are relaLlve, buL some rough benchmarks lnclude:

! Mlnlmal:
o 1yplcal lunch and dlnner resLauranL servlce hours
o no speclal markeLlng acLlvlLles
! ModeraLe:
o 8reakfasL, lunch, and dlnner resLauranL servlce
o Some speclal markeLlng acLlvlLles
! Aggresslve:
o 8reakfasL, lunch, dlnner, and laLe nlghL resLauranL servlce
o An aggresslve merchandlslng sLraLegy
o numerous speclal markeLlng acLlvlLles
o MulLlple ways Lo reach cusLomers and poLenLlal cusLomers

llnally, we also Look lnLo conslderaLlon Lhe amounL of vlslblllLy Lhe new buslness mlghL have
from Lhe Lraln sLaLlon and from new ?ork Avenue. lf Lhe buslness were locaLed aL Lhe Lraln
sLaLlon buL lacked good vlslblllLy from new ?ork Avenue, lLs markeL would be llmlLed prlmarlly
Lo Lraln commuLers (and parLlcularly Lo Lhose whose Lrlps begln and/or end aL PunLlngLon

6
SLaLlon). lf lL had sLrong new ?ork Avenue vlslblllLy as well as vlslblllLy and easy access from Lhe
Lraln sLaLlon, lLs markeL would be sLronger.

1ables 1-4 summarlze our flndlngs:
! 1able 1 lncludes our esLlmaLes of achlevable annual gross sales from purchases made by
PunLlngLon SLaLlon resldenLs
! 1able 2 lncludes our esLlmaLes of achlevable annual gross sales from purchases made by
1own of PunLlngLon resldenLs
! 1able 3 presenLs our esLlmaLes for Ll88 commuLers whose Lrlps begln or end aL PunLlngLon
SLaLlon
! 1able 4 presenLs our esLlmaLes for Ll88 commuLers who llve ln communlLles easL of
PunLlngLon SLaLlon along Lhe orL !efferson branch


LsLlmaLed annual gross sales LargeLs
LlmlLed new ?ork Ave vlslblllLy SLrong new ?ork Avenue vlslbllLy
roducL/servlce Mlnlmum ModeraLe Aggresslve Mlnlmum ModeraLe Aggresslve
Meals and alcohol consumed ln resLauranLs $ 34,000 102,100 170,200 170,200 340,400 310,700
8ooks, magazlnes, newspapers 19,900 39,800 39,600 27,900 47,700 67,600
Movle, LheaLre, and oLher enLerLalnmenL 40,300 60,300 80,700 60,300 80,600 100,800

I"+,% JK Summary of llkely markeL demand from PunLlngLon SLaLlon resldenLs for Lhree poLenLlal producL llnes comblned ln one buslness.


LsLlmaLed annual gross sales LargeLs
LlmlLed new ?ork Ave vlslblllLy SLrong new ?ork Avenue vlslbllLy
roducL/servlce Mlnlmum ModeraLe Aggresslve Mlnlmum ModeraLe Aggresslve
Meals and alcohol consumed ln resLauranLs $ 334,200 668,400 1,002,300 301,300 833,300 1,169,700
8ooks, magazlnes, newspapers 11,700 17,600 23,400 23,400 33,200 46,900
Movle, LheaLre, and oLher enLerLalnmenL 43,600 87,300 130,900 87,300 130,900 174,600

I"+,% LK Summary of llkely markeL demand from 1own of PunLlngLon resldenLs for Lhree poLenLlal producL llnes comblned ln one buslness.

7


LsLlmaLed annual gross sales LargeLs
LlmlLed new ?ork Ave vlslblllLy SLrong new ?ork Avenue vlslbllLy
roducL/servlce Mlnlmum ModeraLe Aggresslve Mlnlmum ModeraLe Aggresslve
Meals and alcohol consumed ln resLauranLs $ 110,700 123,400 183,100 123,000 137,100 203,700
8ooks, magazlnes, newspapers 8,900 17,800 26,700 9,700 19,400 29,200
Movle, LheaLre, and oLher enLerLalnmenL 10,000 13,300 21,000 11,100 17,700 24,400

I"+,% MK Summary of llkely markeL demand from Ll88 commuLers whose Lrlps begln or end aL PunLlngLon SLaLlon for Lhree poLenLlal producL llnes
comblned ln one buslness.


LsLlmaLed annual gross sales LargeLs
LlmlLed new ?ork Ave vlslblllLy SLrong new ?ork Avenue vlslbllLy
roducL/servlce Mlnlmum ModeraLe Aggresslve Mlnlmum ModeraLe Aggresslve
Meals and alcohol consumed ln resLauranLs $ - - 14,700 - - 14,700
8ooks, magazlnes, newspapers 3,400 3,100 6,700 3,400 3,100 6,700
Movle, LheaLre, and oLher enLerLalnmenL 4,800 3,700 6,700 4,800 3,700 6,700

I"+,% NK Summary of llkely markeL demand from Ll88 commuLers llvlng ln Lowns easL of PunLlngLon SLaLlon on Lhe orL ArLhur branch for Lhree
poLenLlal producL llnes comblned ln one buslness.


1here ls, of course, some overlap beLween Lhese groups. lor example, resldenLs of Lhe
PunLlngLon SLaLlon Census ueslgnaLed lace are also resldenLs of Lhe 1own of PunLlngLon, so
our esLlmaLes of poLenLlal sales Lo resldenLs of Lhe 1own of PunLlngLon lnclude sales Lo
resldenLs of PunLlngLon SLaLlon. And, whlle Lhere ls no daLa abouL where Ll88 commuLers
whose Lrlps begln or end aL PunLlngLon SLaLlon llve, lL ls llkely LhaL Lhe vasL ma[orlLy of Lhem llve
wlLhln Lhe 1own of PunLlngLon.




8
=*)AE))*.@
We belleve lL ls llkely LhaL Lhere ls adequaLe markeL demand Lo supporL a comblnaLlon
booksLore, resLauranL, and enLerLalnmenL venue ln PunLlngLon SLaLlon, relylng prlmarlly on
sales Lo PunLlngLon SLaLlon resldenLs, wlLh addlLlonal markeL supporL from oLher 1own of
PunLlngLon resldenLs and from PunLlngLon SLaLlon Lraln sLaLlon passengers. 1he buslness's
chances of success would Lherefore almosL cerLalnly be bolsLered lf lL were locaLed wlLhln easy
walklng dlsLance of Lhe Lraln sLaLlon. Cood vlslblllLy from new ?ork Avenue wlll be cruclal.

8ooksLore sales are llkely Lo be marglnal, 8ook 8evue ls a powerful markeL aLLracLlon, booksLore
proflL marglns are very Lhln, and lL would be unreallsLlc Lo expecL a booksLore wlLh small square
fooLage and wlLh a sLrong markeL compeLlLor Lo generaLe sufflclenL sales Lo supporL an owner's
salary or owner's draw. We Lherefore Lhlnk LhaL, as ls Lhe case wlLh Lhe WashlngLon, uC-based
8usboys and oeLs, Lhe bookshop lncluded ln Lhe resLauranL should be consldered an amenlLy,
noL a slgnlflcanL proflL cenLer. 1he booksLore mlghL Lherefore be owned and operaLed by a
nonproflL organlzaLlon or school (perhaps by a young enLrepreneurs' class or club), or perhaps a
small ouLposL of an exlsLlng booksLore (such as 8ook 8evue), paylng renL Lo Lhe resLauranL for
Lhe square fooLage lL uses.

Clven Lhe acLlve calendar of auLhor readlngs, book slgnlngs, and oLher evenLs aL 8ook 8evue, lL
would be lmporLanL LhaL Lhe enLerLalnmenL program provlded aL Lhe hybrld
resLauranL/booksLore/enLerLalnmenL venue offer acLlvlLles dlfferenL from Lhose avallable aL
8ook 8evue. lor example, Lhe enLerLalnmenL program mlghL lnclude llve muslc, audlence
parLlclpaLory evenLs (llke poeLry slams), fllm screenlngs, and workshops. lL mlghL also offer
programmlng of speclflc lnLeresL Lo PunLlngLon SLaLlon's Plspanlc populaLlon. And, lL mlghL
markeL lLs performance space as a dayLlme venue for prlvaLe meeLlngs and evenLs, augmenLlng
lLs LlckeLed evenL revenues and provldlng a revenue sLream from caLerlng Lhe prlvaLe meeLlngs.

lL wlll be mosL lmporLanL, however, LhaL Lhe buslness perform as a successful resLauranL, relylng
prlmarlly on lLs food and beverage sales, wlLh lLs oLher acLlvlLles servlng Lo aLLracL cusLomers
and provlde addlLlonal sources of revenue.


9
O%@%#", ,*G*&"&*.@) "@F F*)A,"*G%#
8eLall markeL analyses, Lhelr componenLs, and derlvaLlve buslness developmenL plans provlde
lmporLanL guldance on how a buslness or commerclal cenLer should, LheoreLlcally, be able Lo
perform and on Lhe sales levels buslnesses should be able Lo achleve. Powever, a number of
facLors affecL Lhe acLual performance of reLall buslnesses and commerclal cenLers, lncludlng Lhe
skllls of Lhe buslness operaLor and properLy manager, level of buslness caplLallzaLlon, Lhe quallLy
of Lhe physlcal envlronmenL, changes ln overall economlc condlLlons, Lhe effecLlveness of
buslness and dlsLrlcL markeLlng programs, and many oLher facLors. 1he lnformaLlon ln Lhls
reporL ls lnLended Lo provlde a foundaLlon of lnformaLlon for maklng buslness developmenL
declslons for PunLlngLon SLaLlon, buL lL does noL, and cannoL, ensure success.