The presence of a cheesecake factory in a mall could serve as an indicator of the establishment’s financial health, a new report shows.
Somewhat surprisingly, the connection was made public on Tuesday in an article written by Moody’s Analytics entitled “Get In Loser!” We’re Going Shopping!: Checking in on US Malls,” released in honor of Mean Girls’ Day on October 3rd.
Personally authored by the firm’s director of commercial real estate economics, Matt Reidy, the report examines trends that accompany and explain the decline of enclosed malls in recent years.
Once a staple of American society, the complexes are currently in decline, and the presence of certain stores — like a Lululemon or an Apple — can be “an unscientific measure of one mall’s prospects over another,” according to Reidy. Whoever writes this also applies to the chain, which is known for its 38 different types of cheesecake.
In terms of creditworthiness – a good measure of financial health – he found that about 93 percent of loans secured by malls with the chain are keeping their payments current, compared to a meager rate of 72 percent at shopping centers without this chain.
The presence of a cheesecake factory in a mall could be used as an indicator of financial health, according to a Moody’s Analytics report on the demise of the American mall
In terms of creditworthiness – a good measure of financial health – he found that about 93 percent of loans secured by malls with the chain are keeping their payments current, compared to a meager rate of 72 percent at shopping centers without this chain
“The causal relationship,” Reidy explained, “is likely the result of strong site selection by the company and not the result of the restaurant bailing out a failing mall.”
Still, the connection exists, and the restaurant has a quantifiable impact on the mall’s performance, the data shows, in a decade in which the giants are at risk of being replaced by websites and tech commerce.
Today there are 700 indoor malls across the country – up from over 2,500 in the 1980s – and 200 of them have a cheesecake factory.
When looking at the percentage of loans in a financial institution’s loan portfolio that default on payments, Reidy’s study found that malls without the chain had a long-term interest rate four times higher.
“Whether the company’s strong site selection or, less likely, the restaurant has an impact on the mall’s performance,” he wrote, “the connection certainly exists.”
The connection is one of several Reidy has explored in his analysis of the hundreds of shuttered malls over the past 20 years – a phenomenon that began around the release of “Mean Girls” in 2004 – and the struggles of those who still do are left.
In the commercial mortgage-backed securities market, Reidy said, enclosed malls have long-term interest rates that are more than three times higher than outside stores and more than 10 times higher than city main street centers.
Today there are 700 indoor malls across the country – up from over 2,500 in the 1980s – and 200 of them have a cheesecake factory
The report also shows data showing department stores’ recent transition to e-commerce and changes in shopper preferences – today’s shoppers prefer to go directly to a store rather than navigate the maze of storefronts in a mall
The statistics show the transition from department stores to e-commerce and changes in shopper preferences – today’s shoppers prefer to go directly to a store rather than navigate the maze of storefronts in a mall.
In response to this decline, mall owners have opted to introduce additional amenities such as movie theaters and more restaurants, as well as more well-known chains such as Apple and Lululemon.
In his report, Reidy noted that while the Cheesecake Factory — which is mostly limited to American malls — is mentioned less often than its counterparts, it “could also be a useful indicator of stronger mall location.”
After opening as a bakery in the late ’70s, the chain grew in popularity in the late 2000s and early 2010s, around the time malls featured in films like “Mean Girls.” , began their decline.
Reidy’s report shows how the chain has since managed to capture a market despite falling average values, with almost all stores opened in the last 20 years located in some type of shopping center.
In a final parting thought to the study, Reidy revealed that the mall featured in the Lindsay Lohan film “Westfield Old Orchard Outside Chicago” actually has a cheesecake factory.
Cheesecake Factory is a chain restaurant known for its 38 different cheesecake varieties and has more than 200 locations across the United States, most of which are in enclosed shopping centers
Reidy’s report shows how the chain has managed to capture a market despite the waning popularity of malls, with nearly all of its more than 200 stores located in some type of mall
Despite the recent wave of closures, it is still open and, in addition to the desert destination, also has a cinema and a large selection of restaurants.
As for the future fate of malls as an institution, Reidy wrote more seriously: “Although we have taken a more light-hearted approach in this article, the issue remains extremely serious.”
“There is still a long way to go to ease the pain of dying closed malls.” Experienced and well-capitalized mall operators who continue to adapt to and capitalize on new trends and business strategies will be better prepared to weather the storm.
“Those who don’t or can’t,” he warned, “will likely find themselves on deadmalls.com.”
has contacted Cheesecake Factory for comment. Without commenting, the company’s social media appeared to acknowledge the Moody’s study on Tuesday — while also marking the Mean Girls holiday with a tasteful meme.
When Rachel McAdams’ Regina George uttered the lines contained in the study’s title, the post’s caption again offered further homage, simply reading, “Cheesecake?” So get it.”