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Tag Archives: Free Internet

Illogical: Commercial Real Estate Price Boom in an Internet Economy

26 Tuesday Dec 2017

Posted by Paul Kiser in About Reno, Business, Management Practices

≈ 2 Comments

Tags

commercial property prices, commercial real estate, Free Internet, Internet retail, malls, real estate, realty, Recession, retail, retail store closings

Commercial property pricing is meeting reality

Something is wrong in the commercial real estate market. The price per square foot has exploded since the Great Recession of 2007-8. After hitting bottom in May 2009, commercial real estate prices recovered its pre-Recession level in 2013; however, the boom in prices continued upward, reaching a peak of over 125% of pre-Recession prices in 2016.

The odd thing is that the browse-and-click Internet retail market has pushed retail store closings to historic highs, especially big box retail space. What is taking the place of the vacated retail space?

Retail store closings are at historic highs

Nothing.

These large retail spaces are sitting empty, sometimes for years, while commercial real estate prices keep going up. That’s not logical.

Reality is catching up with realty. Green Street Commercial Property Price Index (CPPI) report indicates that commercial property prices have leveled off in 2017. Of all the sectors, mall space has seen the sharpest decline in 2017, down by 11%. This may be the first hint of a commercial real estate bust cycle, that could signal the start of the next recession.

Green Street CPPI by sector

 

Starbucks is Re-Imagining the business…again

22 Friday Oct 2010

Posted by Paul Kiser in Branding, Business, Communication, Customer Relations, Customer Service, Information Technology, Internet, Management Practices, Passionate People, Print Media, Public Relations, Re-Imagine!, Relationships, Rotary, Social Interactive Media (SIM), Social Media Relations, Tom Peters, Traditional Media, Travel, Website, Women

≈ 2 Comments

Tags

alcoholic drinks, Bars, Beer, Blogging, Blogs, Coffee, Customer Loyalty, Digital Starbucks, Executive Management, Free Internet, Free WiFi, Internet, Management Practices, Nevada, New Business World, New York Times, Newspapers, NYT, Public Image, Public Relations, Re-Imagine!, Selling, Social Media, Social Networking, Starbucks, tea, The Wall Street Journal, Tom Peters, USA Today, Value-added, wine, WSJ

by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

This week Starbucks continued to add value to its stores and more Re-Imagining seems to be in the forecast. A few months ago Starbucks did the smart move of offering free WiFi for everyone (see article below) and on Wednesday they took it one step farther with a Digital Starbucks that features free web content if you sign on to their WiFi service while you’re in the store.

(Free WiFi at Starbucks)

Now when you use the free WiFi service in any Starbucks you can also read a digital version of the day’s Wall Street Journal, New York Times, or the USA Today. The New York Times requires software download of a reader, but the USA Today loads up its own reader and retains the exact look of the paper copy. The site also includes Yahoo! news and GOOD content.


In addition to news, the Digital Starbucks offers access to a selection of entertainment, wellness, business/career, and local online resources. There is also a page to access most of the functions found on the Starbucks website. It seems apparent that Starbucks has teamed with AT&T, the WSJ, NYT, USA Today, and several others to offer this value-added service. Recently all Starbucks stores received new labeled newspaper stands with the New York Times, Wall Street Journal, and USA Today in the top three shelves with the local paper given the bottom shelf. In my October tour of stores in Houston, Boston, Denver, and Reno I have seen more papers sold out than I have ever seen at a Starbucks store. Obviously the collaboration is a win-win.

A screen shot of the DG Wellness page

While some information has been sent out regarding the new online features most people have not caught on to the major remake of the log-in page and the new free media resources. That will change over time and I expect Starbucks will see a positive increase in store traffic as customers become aware of what they can access for free at their local store. I have already noticed high occupancy of the key ‘power’ tables (tables next to a power outlet) in almost every store I’ve visited since the free WiFi service started on July 1st.

Starbucks After Hours
The value-added virtual Starbucks is small change compared to what may be coming to some Starbucks locations. As reported in this Monday’s USA Today, the company has been testing wine and beer service at a Seattle location. The three-month remodel of a standard store resulted in a cafe-type look and feel, moving away from the glorified fast food feel of most coffee houses. The move is designed to generate more late day revenue when coffee sales die down. There is little doubt that local bars may find a Starbucks too much to compete with as it creates a middle ground for those like getting out in the evening, but seek a relaxed atmosphere free of loud music and single men on the hunt.

While I remained concerned that Starbucks is allowing accountants have too much say in store operations, I have to congratulate them on bringing value-added service and innovative ideas into the forefront. The winner is the customer … the only person that matters.

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Richmond Embassy Suites: The best at true Hospitality!

01 Friday Oct 2010

Posted by Paul Kiser in Branding, Business, Customer Relations, Customer Service, Employee Retention, Ethics, Honor, Information Technology, Internet, Lessons of Life, Management Practices, Passionate People, Pride, Public Relations, Random, Re-Imagine!, Recreation, Relationships, Respect, Rotary, Rotary@105, The Tipping Point, Tom Peters, Travel, Women

≈ 1 Comment

Tags

Blogging, Blogs, Customer Loyalty, Embassy Suites, Executive Management, Free Internet, Free WiFi, Hospitality, hotels, HR, Internet, Kathleen Lyons, Management Practices, Motels, New Business World, Public Image, Public Relations, Publicity, Re-Imagine!, Richmond, Richmond VA, Rotary, Starbucks, teamwork, Value-added, Virginia

by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

In August I stayed in hotels in seven different cities (Dallas, TX; Bloomington, IL; Chicago,IL; Minneapolis, MN; Norfolk, VA; Richmond, VA; and Virginia Beach, VA..) In a previous post I expressed my displeasure with pay-for-Internet at the Millennium Hotel* in Minneapolis, which was slightly unfair as the hotel was a pleasant, although completely expected, experience. As a people warehouse the Millennium Hotel fits the mold that is typical of most business traveler-type hotels. However, out of the seven hotels of which I was a guest, there was one that made a big impression on me, the Embassy Suites in Richmond, Virginia.

(*Millennium Hotel: Go Away)

The main entrance the Embassy Suites in Richmond

The Embassy Suites hotel in Richmond, Virginia is not a flashy, Vegas-type hotel. From the outside it is a modern, yet modest building tucked back from busy streets; however, access to the Interstate is nearby. Like many hotels it is surrounded by a massive asphalt parking lot; however, the entrance is behind a landscaped island of trees. The great thing about the foliage is that it creates the sense from the outside that this hotel is not just a people warehouse like so many others.

After entering the hotel one doesn’t have to hunt for the Registration Desk as it is positioned in such a way that it oversees the entrance area, but it doesn’t intrude into the path of a guest walking to their room from the parking lot.

The Inner Courtyard

The striking feature of the hotel is the inner courtyard. I have seen this design before, but it was a refreshing change from institutional interior designs of most people warehouses. The open interior gives a community feel to the hotel rather than the impression that you just walked into a U-Store-It facility, as is the feel of most hotels. The interior landscaping and flowing water features create a tropical environment. This hotel was number six for me during my August travels and it was a refreshing change from the five previous corporate institutions of I had visited.

My room was also vastly different from my previous guest experiences. This was a true ‘suite’ and not just a room with a bed. There was a clearly defined living space with a television, desk, couch, and bar area. The bedroom was in the rear of the suite with a door that would allow privacy if two people were in the room and one wanted to watch television or work while the other one slept. The bedroom had a counter with running water and its own television. The bathroom was in the transition area between the living room and the bedroom offering easy access from both rooms. The entire suite is a brilliant design.

Of course the Internet was free (my minimum requirement) and I had no problems making a connection. If needed, I could have easily made the suite my home base. It is a comfortable living and working environment. I would have had no concerns about hosting small meetings in my room. I had everything I needed except for my Starbucks Chai Tea.

The Embassy Suite's Dining/Reception Area

One of my issues with most hotels is the assumption that people don’t want to interact with other people when they stay in a hotel. I’m as reclusive as most, but to visit a city and never come out of my hotel room is what creates that ‘warehouse feeling’.

At the Richmond Embassy Suites the open feel of the courtyard was put to good use by encouraging guests to congregate twice a day for a free manager’s reception each evening and free breakfast each morning. The reception offered adult and non-alcoholic beverages along with a variety of choices of snack items (hors devours.) The breakfast was as good or better than the breakfasts I’ve eaten at eaten at most Sunrise Rotary Clubs. Those who have eaten a breakfast at a Rotary Club may think that may not be saying much, but I typically pay $14 to $15 to eat a Rotary breakfast and this was free. The free gatherings were the most ‘value-added’ service I have experienced in a hotel.

From the few interactions I had with the hotel staff it was obvious that the Chief Executive of this property, Kathleen Lyons, and her staff understood the meaning of the word ‘guest’. I was always treated with respect and a smile. It was apparent that they were pleased that I choose their hotel over the other options in Richmond.

Giving great customer service is not that mysterious, but it requires that everyone from the bottom (no offense intended, Ms. Lyons, but in my world that means you) up to the top (the maintenance and housekeeping staff) must enjoy what they do and enjoy working with people. It was clear that the Embassy Suites in Richmond is not run by ‘management’, but managed through leadership. Bravo to Ms. Lyons and her team!

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Millennium Hotel: Go away, spend your money elsewhere

27 Friday Aug 2010

Posted by Paul Kiser in Branding, Business, Communication, Customer Relations, Customer Service, Information Technology, Internet, Lessons of Life, Management Practices, Passionate People, Public Relations, Re-Imagine!, Rotary, Social Interactive Media (SIM), Social Media Relations, The Tipping Point, Tom Peters, Travel

≈ 3 Comments

Tags

Blogging, Customer Loyalty, Executive Management, Free Internet, Free WiFi, hotels, Internet, Management Practices, Millennium Hotel, Minneapolis, Minnesota, New Business World, Public Image, Public Relations, Publicity, Re-Imagine!, Social Media, Social Networking, Tom Peters, Value-added, WiFi

by Paul Kiser
USA PDT  [Twitter] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

This week I spent a couple of nights in the Millennium Hotel in downtown Minneapolis, Minnesota, USA. Now this is a good hotel and it has everything you would expect for the business traveler. The rooms are clean and reasonably updated. The staff is pleasant. It has a restaurant and a bar (although it struck me that maybe both were afterthoughts in the lobby design.) It has a pool on a fitness room (I didn’t go to hunt for them, but I’m assured that they exist.) It has a television with a selection of stations and optional pay-for-movies.

They have everything you might expect, save one item. Free WiFi/Internet. To access the Internet in the Millennium Hotel in Minneapolis you must add $10 (okay, $9.95) to the daily room rate.

Some business practices reflect old ideas.

This means one of two things. Either they decided to contract out their Internet service and they are getting some kind of kickback, or they have a bean-counter in their organization that has said to management, “Hey, we can boost our room rate by $10 if we charge for the Internet!”

It doesn’t matter why they charge for Internet service because what it says to me is simply, “We would prefer that you go elsewhere for Internet service.” In my case, I go to Starbucks where I can get online for free…and buy my tea with my extra $10…and then, rather than go back to the hotel to eat I find a place near Starbucks. Is that what they want their guests to do? Apparently.

A better place to spend $10/day

Next month I will be going back to Minneapolis and I will find my hotel on Priceline.com. That may land me back in the Millennium Hotel and once more I will go outside the hotel to connect to the world…and spend my money. I wonder if they have a clue? I seriously doubt it.

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Starbucks makes a smart move: Free WiFi

09 Friday Jul 2010

Posted by Paul Kiser in About Reno, Branding, Communication, Customer Relations, Customer Service, Information Technology, Internet, Lessons of Life, Management Practices, Public Relations, Re-Imagine!, Relationships, Rotary, Social Interactive Media (SIM), Social Media Relations, The Tipping Point

≈ 11 Comments

Tags

Blogging, Blogs, Circus Circus, Coffee, convention authority, Customer Loyalty, Executive Management, Free Internet, Free WiFi, gambling, Gaming properties, Grand Sierra Resort, hotels, John Ascuaga's Nugget, Las Vegas, Management Practices, Nevada gaming, New Business World, Public Image, Public Relations, Publicity, Re-Imagine!, Reno Gaming, Rotary, Social Media, Social Networking, South Point, Starbucks, The Atlantis, The Eldorado, The Peppermill, The Silver Legacy, Value-added, WiFi

by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Customer Loyalty: Paul Kiser in Starbucks style

Today I’m dressed like a Starbucks employee to honor the wisdom of the decision-makers at the famous coffee company to team with AT&T to offer free WiFi to all. They started it on July 1st. It is a smart move…a very smart move.

Why? There is one common aspect of every successful business and it is simply to give your customers a reason to love you. That’s it! Customers who love a service or product is an absolute ‘must’ if you want to build customer loyalty and business referrals. You can spend millions of dollars in advertising and not get the return that a company gets with requited love from their customers. With free WiFi Starbucks has found a way of creating value-added service that will cause many people to love Starbucks.

If you have a ‘butts-in-the-seats’ type of business and you want customers to: 1) frequent your location, 2) spend time and money in your business and, 3) be loyal to your business then free WiFi is one of the best ways to make it happen. Here’s what will happen for Starbucks over the next 12 months.

  • Starbucks will see increased traffic of laptop users (a ‘small’ market of people who will buy almost 200 million laptops in 2010)
  • Starbucks will see more repeat business
  • Starbucks will be more visible to more people
  • Starbucks will not need to spend as much on advertising and will get more social media publicity

All butts-in-the-seats organizations would like to experience these four outcomes in their business, so why don’t more places offer free WiFi? In brief, the answer is ‘accountant-think’, which is always short-sighted. The common rationale is one of two issues. First, instead of seeing free WiFi as an inexpensive way to add value to their service the accountant-think business people try to make it a revenue source. In Reno, Nevada the major hotel/gaming properties have been known to charge as much as $500 to ‘turn on’ WiFi in their convention areas and most of the properties charge around $13/day for guests to have access to WiFi. The result is that technology conventions go elsewhere rather than be charged for a service that they can get for considerably less (or free) in another market. The Reno gaming properties have boxed themselves in with contracts or dependence on the revenue source from WiFi, so they are now in a death spiral of losing more and more business or give up a piece of their dwindling revenue.

Last year I was in Las Vegas on a business trip and stayed at the South Point property. They charged a fee for WiFi, so I went to Starbucks to get online (my home account is with AT&T, so I’ve always had free access at Starbucks.) Afterward I picked up dinner at the Outback Restaurant next door and took it back to my room. South Point didn’t get me to stay on property, nor did they even get me to eat at in-house, simply because they didn’t offer Free WiFi. Is that a smart business move on their part? Nope, just good, solid accountant-think.

The second rationale accountant-think executives is that WiFi customers don’t have a revenue impact. In August of 2009, Erica Alini wrote an article for the Wall Street Journal (NOTE: the Wall Street Journal or WSJ is a historical archive of old business trends written by accountant-think reporters) that declared, “Coffee Shops Pull the Plug on Laptop Users.” For her article Ms. Alini cites three examples in New York that discussed limiting or eliminating laptops at a cafe or coffee shop. The most common problem seemed to be too many customers … what a tragic problem … and that some laptop users were purchasing minimal product. However, Ms. Alini admits that some places were using laptop users to ‘make the place look busy.’

A deserted restaurant is cause for people to avoid the business, so having customers, even minimal revenue producing customers, can mean more paying customers. My question is how much would a coffee shop have to pay people to sit and look like customers? Free WiFi is a small price to pay. I spend $10 to $15 per day at my Home Starbucks on Keystone in Reno, NV, USA. It will not make me a shareholder, but it is money I would not spend in one place, except for the fact that I am a captured customer. I also always meet with people at a Starbucks, so I bring in additional customers. The major factor in my customer loyalty is the access to free WiFi.

Starbucks has made a very smart business move with making free WiFi a value-added service for all and the return on the service will reap big dividends in customer loyalty and increased traffic (butts in the seats.) Starbucks customers have a new reason to love Starbucks and that is key to survival in today’s world. But don’t try telling that to the accountant-think executives running other stores and restaurants. They just won’t understand it … and I’m sure that’s okay with Starbucks.

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  • How to Become a Zen Master of Social Media
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  • Publishing Industry to End 2012
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  • Familius Interruptus: Lessons of a DNA Shocker
  • Moffat County, Colorado: The Story of Two Families
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