The new Ghirardelli Chocolate store in New York is located next to the entrance to the always busy … (+) Empire State Building Observation Deck.
Albert Lews
Tourists flock to the Ghirardelli Chocolate Company, located in Ghirardelli Plaza in San Francisco, which is a must-see attraction. Ghirardelli has grown and expanded its list of stores in the West and beyond, including 4 stores in San Francisco, 5 in Northern California, 3 in Southern California, and one each in Chicago, Las Vegas, Louisville, and Disney Springs, for a total of 16 stores.
But for the first time in its history, Ghirardelli Chocolate headed east to open a new store on August 6.th in New York, on the ground floor of one of the city’s most iconic landmarks, the Empire State Building and its world-famous observation deck. It attracts no fewer than 4 million visitors each year, and it’s a safe bet that some of them will leave with a chocolate bar.
The store will feature the full line of Ghirardelli Chocolate products: its 13 different sundaes, including its classic hot fudge; fountain and bakery items, including milkshakes, hot chocolate, coffee and brownies; and new products launching this summer, including caramel waffle cone sundaes.
A famous San Francisco-based chocolate maker has opened a New York store in a busy location.
Go where the people are
Why open in New York? Joel Burrows, CEO of Ghirardelli Chocolate Company for the past 6 years, says, “New York is an incredible city with nearly 20 million people living in the metropolitan area, lots of tourists, lots of energy and excitement. We want to be where the people are.”
Burrows said he chose the iconic building as his 17thth location because “we’ve been looking at the traffic, not just to buy tickets and visit the Empire State Building, but also the traffic on the street, day in and day out.” He expects several partnership opportunities with the Empire State Building in the future.
Winter doesn’t stop tourists in New York
Even in winter, he suggests, when New York can be cold and frigid, tourists don’t stop to visit the Empire State Building. In fact, he points out, tourist numbers increase during the holidays. “Imagine when people have fresh air and they can enjoy delicious hot chocolate?” he says.
But the rent must be astronomical. Is this a promotional effort for the Ghirardelli Chocolate brand to increase its visibility in the eastern part of the country or a way to generate profits? “We would like it to be both,” Burrows says, “a great showcase for our brand, but we also want to make our business profitable.”
While tourists are a prime target, he also hopes to attract locals and many New Yorkers who shop at the flagship Macy’s department store, located a block away.
New York City is full of chocolate shops, including 5 Li-Lac stores, Max Brenner NY, Chocolate Moderne, to name a few. So what niche does Ghirardelli Chocolate cater to? Burrows says it’s best known for its hot chocolate sundae, but it also offers grab-and-go offerings, where customers can choose from its chocolate squares.
A Yelp customer found the sundae too expensive
After just a week, several customers on Yelp praised the store and its offerings, but one customer thought the $16.95 price tag for a two-scoop hot fudge sundae was a bit steep.
Burrows responded that each consumer “has to make their own choice,” but explained that his hot chocolate is made fresh every day and suggested alternatives to cheaper items such as the mini sundae and hot chocolate.
Burrows has a global outlook. He grew up in Northern Ireland, graduated from the University of Edinburgh and spent 10 years at the helm of Lindt Chocolate, which owns Ghirardelli Chocolate and is now based in San Francisco.
In addition to its retail stores, its chocolates are also sold in many supermarkets, including Wal Mart and Target, independent grocery stores, drugstore chains, and it also has a robust restaurant business. When asked to break down its revenue by revenue stream, he says, “We are not able to provide specific revenue details.”
Burrows expects to open an additional store this year, although he can’t go into details.
Asked about his future, Burrows says: “We’re looking to grow our brand in many areas, creating the right kind of innovation, continuing to grow and invest where it makes sense.”
