Malls Ease Way for Tea Shops
Niraj Lama, Leaf Tea Bar, New York
US
The Eastview Mall in Victor, NY, is one of several mall operators to successfully attract local tea shops to replace 379 Teavana locations that are closing as Starbucks withdraws from that retail segment.
Happy Earth Tea received an offer it could not refuse said founder Niraj Lama. In February the shop opened a 1,000 sq. ft. location in the mall. Managers there threw into their offer expensive sinks, water filters, counters, lighting, shelving, and display racks abandoned by Teavana. This greatly reduced the expense of build out. Teavana locations in the best malls bring in an average $1,000 per square foot of retail space, grossing up to $1 million a year.
Eastview Mall in Victor, New York is situated in an upscale region near wine-famous Finger Lakes and owned and operated by Wilmorite Management Group, the indoor mall first opened in 1971. It houses more than 30 stores unique to the market including Apple, Brooks Brothers, Crabtree & Evelyn, Eddie Bauer, L.L. Bean, LEGO, Michael Kors, TUMI, and Vera Bradley. There are five anchors including a Von Maur and a Regal Cinema along with top restaurants like P.F. Chang’s China Bistro.
Lama, 44, a native of Darjeeling, India, started his tea business online in 2011 after relocating to the U.S. He opened his first brick and mortar shop in 2016 at 650 South Ave., in the South Wedge neighborhood. He calls the Leaf Tea Bar a “sober pub” - a hangout for locals who want a taste of fine tea.
“Initially there was some hesitation. I was not sure the mall was a place for small independents, but we were aware that Teavana was really doing well. The mall approached us because of our local reputation. They wanted to keep tea available for customers and did not want someone else to go in there,” he said.
“I think we kind of fell into it,” he said, adding, “Without the Wilmorites actively courting and supporting us with terms favorable for a small independent shop this would not be possible.”
– By Dan Bolton