Professor Crocker H. Liu May 11, 2021
Real Estate Process
Location Analysis1
Objective: The purpose of this case is to familiarize students with how feasibility analysts use
demographic data from the Bureau of the Census, the internet, and other sources such as Claritas
and ESRI to help them determine potential market areas. The case is also designed to introduce
students to the benefits of geographic information systems (GIS). Property level and demographic
data is used to assess the strength a potential site e.g. the probability that a retail store will
succeed at a given site. This is important since retail sales are closely related to local economic
conditions. Another goal of this case is to show how existing market area stores can provide
valuable information to help you analyze demand and market opportunities. Knowing the market
demand potential in a given area makes it a lower risk investment than blindly entering a new
market.
Company: Created by P.F. Chang’s China Bistro in 2000,
Pei Wei is a chain of fast, casual restaurant2 serving Pan
Asian fare that incorporates Vietnamese, Korean, Thai,
Japanese, and Chinese flavors. Operating in more than 1653
locations in the U.S., Pei Wei's dishes are made to order in
an open concept kitchen using cooking methods like wok
firing. Approximately 45% of Pei Wei’s revenue is generated
at lunch with the remaining 55% at dinner; take-away sales
comprise approximately 45%. Pei Wei ranks second in the
Asian food category behind Panda Express which has more than 2,000 domestic units. In
December of 2017, Pei Wei separated from its parent company and relocated its headquarters to
Dallas. in June 2019, private-equity firm Centerbridge Partners4 sold Pei Wei to PWD Acquisition
LLC, the owner of Pick Up Stix, Leeann Chin and Mandarin Express concepts.
Real Estate Criteria5:
Demographics and Trade Area: Minimum population of 80,000 (3 miles) and 250,000 (5 miles).
Must be able to support a $10 per person average (ppa). Above average median income relative
to the Metropolitan Statistical Area with average income of $75,000+ preferred. Active trade area
(3-mile radius) with above average daytime and residential density.
Preferred Location and Types of Centers: Lifestyle Center, Regional Mall, Specialty Strip. End-
cap, free standing, or multi-tenant out parcel building only.
1Copyright by Crocker H. Liu, May 11, 2021.
2
Guests order from a cashier, and the food is brought out to the table, a style known in the industry as fast casual.
3
Pei Wei peaked at 213 locations in 2016.
4
Centerbridge paid $1.1 billion for P.F. Chang’s and Pei Wei in 2012. In January 2019, Centerbridge announced it was
in talks to sell P.F. Chang (excluding Pei Wei) to TriArtisan Capital Partners and Paulson & Co. for approximately $700
million
5
Information in this section is from https://retailtenant.io/business/pei-wei-asian-diner/,
http://ursaguidebook.pbworks.com/w/file/fetch/67752136/Multi-Site%20Business%20Development%20Book.pdf,
https://www.icsc.com/uploads/event_documents/SERC13RetailerFactSheets.pdf, and
https://www.sec.gov/Archives/edgar/data/1039889/000103988912000003/pfcb10k2011.htm.
1
, Preferred Co-Tenants: Active trade sites must be conveniently located in neighborhoods or
lifestyle centers that accommodate everyday activities. These may include high-volume or
upscale grocery stores, specialty and convenient retail, and similar quick-casual restaurants.
Store size: The average restaurant size is approximately 3,000 square feet with a range of 1,800
to 3,500 square feet often on a pad site.
Site Criteria, Site Design and Traffic/Access Requirements: Excellent visibility to main roads. Easy
access at peak hours from thoroughfare. Convenient and available parking for 70 seats and 18
employees (50-60 spaces). Four to six spaces designated 'short term' for Take Away Guests.
Minimum space dimensions at least 42 feet wide. Easy ingress/egress, near traffic lights, left turn-
in, left turn-out preferred. Traffic count of 40,000 with a range of 30,000 to 50,000 cars per day
(CPD).
Interior: Minimum height 14 feet (floor to full clearance at ceiling). Interior seating for about 60-70
customers. Pei Wei has a designated door in the restaurant for cashiers to offer take away food
orders.
Source: https://www.nrn.com/consumer-picks/pei-wei-rewarding-loyal-guests
2
Real Estate Process
Location Analysis1
Objective: The purpose of this case is to familiarize students with how feasibility analysts use
demographic data from the Bureau of the Census, the internet, and other sources such as Claritas
and ESRI to help them determine potential market areas. The case is also designed to introduce
students to the benefits of geographic information systems (GIS). Property level and demographic
data is used to assess the strength a potential site e.g. the probability that a retail store will
succeed at a given site. This is important since retail sales are closely related to local economic
conditions. Another goal of this case is to show how existing market area stores can provide
valuable information to help you analyze demand and market opportunities. Knowing the market
demand potential in a given area makes it a lower risk investment than blindly entering a new
market.
Company: Created by P.F. Chang’s China Bistro in 2000,
Pei Wei is a chain of fast, casual restaurant2 serving Pan
Asian fare that incorporates Vietnamese, Korean, Thai,
Japanese, and Chinese flavors. Operating in more than 1653
locations in the U.S., Pei Wei's dishes are made to order in
an open concept kitchen using cooking methods like wok
firing. Approximately 45% of Pei Wei’s revenue is generated
at lunch with the remaining 55% at dinner; take-away sales
comprise approximately 45%. Pei Wei ranks second in the
Asian food category behind Panda Express which has more than 2,000 domestic units. In
December of 2017, Pei Wei separated from its parent company and relocated its headquarters to
Dallas. in June 2019, private-equity firm Centerbridge Partners4 sold Pei Wei to PWD Acquisition
LLC, the owner of Pick Up Stix, Leeann Chin and Mandarin Express concepts.
Real Estate Criteria5:
Demographics and Trade Area: Minimum population of 80,000 (3 miles) and 250,000 (5 miles).
Must be able to support a $10 per person average (ppa). Above average median income relative
to the Metropolitan Statistical Area with average income of $75,000+ preferred. Active trade area
(3-mile radius) with above average daytime and residential density.
Preferred Location and Types of Centers: Lifestyle Center, Regional Mall, Specialty Strip. End-
cap, free standing, or multi-tenant out parcel building only.
1Copyright by Crocker H. Liu, May 11, 2021.
2
Guests order from a cashier, and the food is brought out to the table, a style known in the industry as fast casual.
3
Pei Wei peaked at 213 locations in 2016.
4
Centerbridge paid $1.1 billion for P.F. Chang’s and Pei Wei in 2012. In January 2019, Centerbridge announced it was
in talks to sell P.F. Chang (excluding Pei Wei) to TriArtisan Capital Partners and Paulson & Co. for approximately $700
million
5
Information in this section is from https://retailtenant.io/business/pei-wei-asian-diner/,
http://ursaguidebook.pbworks.com/w/file/fetch/67752136/Multi-Site%20Business%20Development%20Book.pdf,
https://www.icsc.com/uploads/event_documents/SERC13RetailerFactSheets.pdf, and
https://www.sec.gov/Archives/edgar/data/1039889/000103988912000003/pfcb10k2011.htm.
1
, Preferred Co-Tenants: Active trade sites must be conveniently located in neighborhoods or
lifestyle centers that accommodate everyday activities. These may include high-volume or
upscale grocery stores, specialty and convenient retail, and similar quick-casual restaurants.
Store size: The average restaurant size is approximately 3,000 square feet with a range of 1,800
to 3,500 square feet often on a pad site.
Site Criteria, Site Design and Traffic/Access Requirements: Excellent visibility to main roads. Easy
access at peak hours from thoroughfare. Convenient and available parking for 70 seats and 18
employees (50-60 spaces). Four to six spaces designated 'short term' for Take Away Guests.
Minimum space dimensions at least 42 feet wide. Easy ingress/egress, near traffic lights, left turn-
in, left turn-out preferred. Traffic count of 40,000 with a range of 30,000 to 50,000 cars per day
(CPD).
Interior: Minimum height 14 feet (floor to full clearance at ceiling). Interior seating for about 60-70
customers. Pei Wei has a designated door in the restaurant for cashiers to offer take away food
orders.
Source: https://www.nrn.com/consumer-picks/pei-wei-rewarding-loyal-guests
2
