Operating strictly as manufacturers and wholesalers with almost 2,000 accounts internationally, including such high-profile clients as Nordstrom’s, Sak’s Fifth Avenue and Neiman Marcus, the Tommy Bahama’s founders were presented with the opportunity to open their own retail location in Naples, Florida. While viewing the potential location, the landlord suggested taking additional space and opening a restaurant along with the retail. "Cool!" was the response and the rest is becoming restaurant and retailing history.

Tommy Bahama’s first compound opened in Naples, Florida, in 1996. In only 7,250 square feet, sales exceeded $7 million in 1998, of which approximately $3 million was generated by the retail component. Same store retail sales for this location are running 62% over the comparable prior-year-period. The restaurant seats a total of 160 including patio, bar and counter seating. Same store restaurant sales are up 30% over the previous year.

The Palm Desert, California, unit opened in October of 1998 occupying approximately 11,400 square feet on two levels. Located on El Paseo, the ground floor retail space is approximately 4,500 square feet with the balance of space for the cafe on the second level. The fourth compound, in Newport Beach, California, opened in late November of 1998 and uses 10,300 square feet on one level.

Generating sales in the $900 to $1200 psf range by delivering a combination of high-quality clothing and an unforgettable dining experience, Tommy Bahama is poised to expand nationally by focusing in specialty retail locations particularly in high end resort cities. Preferred locations offer street front settings, with pedestrian traffic and strong, high-end specialty retailers as co-tenants. At the sales levels they achieve, each restaurant is typically on a wait for a table for much of the day. While waiting for their table in the dining room, customers shop in the attached retail store while spending $145 on average.

Tommy needs locations of 10,000 square feet with outside dining and staging areas for live music. Typical rents
are in the mid- $20’s to lower $30’s with a significant landlord contribution. Average cost of buildout of a compound is more than $300 per square foot. A typical lease term is ten years with three five-year options at fixed rates. Tommy’s operates two-level locations but one level is preferred. All locations have been financed internally.