For Tommy Bahama, restaurants and retail are a potent pairing
Tommy Bahama's dual retail-restaurant model enhances customer experience and brand engagement.
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Tommy Bahama operates 29 restaurants within its retail stores, which have seen a 9.4% sales increase, totaling $118.7 million last year. The integration of food and clothing sales creates a unique customer experience that leverages the brand's lifestyle appeal.
Why It Matters
This integration may enhance unit economics for franchisees, as the combined retail-restaurant model could encourage greater customer spending during visits, potentially expanding territory opportunities in lifestyle-focused markets.
Tommy Bahama, a lifestyle brand based in Seattle known for its casual dining and retail offerings, has successfully integrated restaurants into its retail strategy, resulting in notable sales growth. The company's 29 restaurants and bars generated $118.7 million in sales last year, reflecting a 9.4% increase and marking a 13-year streak of sales growth, excluding the downturn in 2020 due to the pandemic. Tommy Bahama operates 160 retail stores across various locations, combining Hawaiian-themed apparel with dining experiences that resonate with customers.
The brand was founded in 1993 as a wholesaler and opened its first retail outlet in Naples, Florida, in 1996, where the founders—Tony Margolis and Bob Emfield—ventured into the restaurant business out of available real estate and entrepreneurial spirit. Rob Goldberg, EVP of resorts, restaurants and bars for Tommy Bahama Group, noted the immediate success of their initial restaurant venture, which led to the subsequent establishment of restaurants in the first five retail locations.
These restaurant operations not only enhance the customer experience but also reinforce the brand’s identity. The restaurants serve a dual purpose, showcasing the brand's lifestyle ethos through menu items and décor that resonate with the brand's identity of relaxation and leisure. The synergy between retail and restaurant formats allows for creative marketing opportunities, such as launching new clothing lines with promotional parties held in-store or quickly addressing customer needs, like replacing spilled merchandise. Goldberg emphasizes that this integration enhances customer engagement, stating, “It's so much easier to translate the brand when [customers] can see it and touch it and feel it.”
