High steaks when Apple’s around

Jonathan Stewart and David Price
7 February, 2012
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It seems in New York City’s Grand Central Terminal the public enjoy steak with their Apple, with Michael Jordan’s The Steak House seeing a seven percent rise in sales in the seven weeks since the neighbouring Apple store moved in, according to Crain’s New York.

New York City’s Metropolitan Transportation Authority (MTA) was condemned in December for apparently offering Apple a favourable deal, with Apple paying US$60-per-square-foot rent for its December-opened store – less than most of its neighbours, it appeared.

But the criticism no longer exists; rather The Steak House co-owner Peter Glazier has dismissed the belief that its number of customers were rising because of the closure of competing restaurant, Metrazur.

The Apple store replaced Metrazur, which closed in July, but the growth was not apparent during the Apple Store’s renovation, as the seven percent jump “only happened after Apple opened”, Glasier told Crain’s New York.

“We know their customers are coming here… I’m always looking for the little white bags,” Glazier’s son, Matthew, said.

After New York State Comptroller Thomas DiNapoli declared he would be looking into the deal, the MTA defended its lease to Apple in December, releasing the following statement:

“With regard to any calls for an investigation into the lease, our comment is this: Bring it on. This is the best possible deal for the MTA, quadrupling the rent we receive and bringing foot traffic to Grand Central Terminal that will increase revenue from all of our retailers. We look forward to explaining the details of this competitively bid transaction to anyone who is interested,” the MTA said, according to MacRumors.

The website believes the MTA would gain US$500,000 in rent for every 1 percent increase in sales in the Terminal, and with The Steak House’s recent sales, it appears everybody’s happy.

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