When the Apple Store opened in Grand Central Terminal, the lease deal between the MTA and Apple came under fire for being of the sweetheart variety. Even though the MTA had managed to significantly boost its revenue stream from the space, the per-square-foot price was still markedly lower than what Apple had paid at other locations throughout the city. Still, the MTA noted that if Apple delivered the traffic gains as predicted, other businesses in the terminal would see a rise in sales, and for every percentage increase in sales through Grand Central, the MTA would enjoy $500,000 more in revenue.
Today, we get the early word that the Michael Jordan Steakhouse enjoyed a seven percent boost in business since the Apple Store opened. Its owners say the bump happened not when Metrazur closed but when the Apple Store finally opened its doors. “We know their customers are coming here,” Matthew Glazier, the owner’s son, said to Crain’s New York. “I’m always looking for the little white bags.”
Of course, Apple’s GCT opening coincided with the busy holiday season, and it remains to be seen if other businesses enjoyed a similar bump in foot traffic and purchases. From my experience, the Apple Store has been perennially crowded, and other businesses appear to be enjoying the success as well. It will be a few months before we know the extent of the economic boost Apple will lend to the Grand Central shopping mecca, but this supposed sweetheart deal may just end up as a good one for the MTA yet.
13 comments
A visit to the Apple store for shoddy, overpriced hardware followed by a visit to Michael Jordan’s for a mediocre yet overpriced meal? How do the middlebrow dinks who consume Apple products achieve so much disposable income? The universe really doesn’t reward merit!
A little bitter are we?
Not for my own sake. I guess I just have little respect for companies that employ slave labor, and even less for ones that profit so much from it. That the stupid have a disproportionate grasp on the purse strings in this world really is not news.
(I actually try to be vegetarian and beeretarian these days, but I must admit I love a good steak sometimes. MJ’s isn’t it.)
Unfortunately, pretty much everything which is made in China is made under questionable circumstances.
I agree. I wasn’t saying someone should never buy products with components from China, particularly when you must to meet your basic needs. Just show some sensible discretion.
“How do the middlebrow dinks who consume Apple products achieve so much disposable income?”
Um it’s right there in the acronym you (apparently) don’t know the origin of.
I’ve never been an Apple fan, but saying their products are “shoddy” really isnt accurate.
Yeah, maybe some of them are ‘dinks’ but you my lad are an arse.
I object to your characterization. “Some of them”?
Even if the MTA gains from Apple’s presence still doesn’t answer the question if the MTA negotiated the best deal they could have possibly gotten or if they gave away the store.
Probably still too early to gauge if the discount Apple is getting can be made up via higher resulting traffic from other stores and higher future rental fees at GCT. I’d be interested to see what the corresponding numbers are for Apple’s Fifth Avenue store over the past two-plus months and compared to the same period a year ago, so see if the GCT outlet is boosting Apple’s midtown customer base or just cannibalizing some of Fifth Avenue’s market (which is still good for the MTA and their potential rental rates, but not as great for the Cupertino folks on a cost/benefit ratio).
IIRC, Apple maintains a pretty unitary pricing model. As such any discount for them isn’t going to be passed on to the people consuming the products. Therefore, the supposed higher traffic would result regardless of their lease terms, all other things being equal.
Since you’re being an elite prick, I’d love to know just how many “shoddy” Apple products you have owned? My last laptop lasted me well over 8 years. While you can certainly comment on the customers, you better show me the proof that you are an “expert” on Apple hardware.