A really wild place to shop & eat - The Rainforest Cafe in the Mall of America, Minnesota - Special Section: Reinventing the Discount Store - Store Design

Discount Store News, May 15, 1995

The Rainforest Cafe immerses diners and shoppers in the sights, sounds and even smells of the rain forest. Bill Clinton would probably try to have the live parrots and macaws declared endangered species. Rush Limbaugh would try to order them, too-deep-fried.

But to the Rainforest Cafe's growing legion of loyal fans, the live animals, tropical motif, educational toys and games, environmental emphasis and terrific food add up to an irresistible family environment.

Founder Steve Schussler should know. At a cost $750,000, he turned his home into a tropical rain forest, at first to provide better for his menagerie of exotic birds, and later with an eye on providing for the family diner, perfecting the concept until it could be commercially rolled out.

The results, which debuted in late 1994 at the sprawling Mall of American outside Minneapolis, is a 14,000-sq.-ft. replication of a rain forest, complete with realistic thunderous cloudburst every 20 minutes, talking banyon trees, a snapping crocodile (animatronic), real tropical birds and even authentic smells of the millions of flowers that inhabit a rain forest.

But there is much more to the concept than aesthetics. Schussler adheres to a very strict approach to retailing, which he calls "the five E's: Entertainment, Education, Environment, Earnings and Employees."

Billed as an "environmentally friendly family adventure," the Rainforest Cafe "engages all five senses," Schussler said. "It's more than a place to eat," he added. "It's a true family outing."

And a relatively inexpensive one at that. An average ticket is about $10 for food and drinks, and nearly everything on the menu is priced under $10, with jumbo sandwiches priced around $5. Nevertheless. Schussler expects to gross over $9 million in the year, with later and larger units projected to sell even more.

About 45% of the outlet's sales come from general merchandise, which includes the usual T-shirts, caps and sweatshirts (although all are embroidered and embellished) along with books, rocks and minerals shaped by native artisans, jewelry, greeting cards, china and other tableware, a Worldbeat music section, home decor items like animal-shaped throw rugs and educational games and puzzles. If you really like one of the 15 or 20 live birds on the premises, you can take one home for 1,500 and up. (And if you're Michael Jackson, you can even make a bid on the talking banyon tree, as Jackson did during a recent visit.)

About 50% of the merchandise is private label, Schussler said, most of that apparel, but mush of it made up of unique items he has found worldwide that address the company's pro-environment philosophy. Such items obviously add strong margin contributions, as well as total differentiation from competitors, from the Hard Rock Cafe to Toys "R" Us and L'iL Things.

The environmental aspect was the founding principle for Schussler, who said he's been fascinated with animals all his life. Rainforest Cafe donates a percentage of its receipts to environmental causes, as do many of its vendors, which include a wide array of suppliers of organic and recycled products. Proceeds from a wishing well and environmental parking meter are also donated to environmental causes.

Wherever possible, the building materials and supplies reflect the same emphasis. Tabletops, for instance, are made from a material called Environ formed by recycled newspapers and a soybean extract, and invented, amazingly enough, by a 12-year-old from Minnesota for a school science project. Cleaning products are purchased from an organic supplier, and only line-caught fish are served in the dining room.

The focus on the environment offers Rainforest Cafe an easily assimilated identity, but Schussler noted that what will keep people coming back, apart from the great food (which he contrasts with the uninspired cuisine of other, unnamed, retail/restaurant concepts), is "theatrics, entertainment, education and, just as important, well-rounded management."

While managers will still come from the restaurant and retail industries, they will undergo intensive training to "make them more rounded and curved," Schussler said.

Since its first store opened last fall, Rainforest Cafe has attracted long lines at nearly every meal, predominantly but far from exclusively made up of families with young children. "We appeal to everyone," Schussler said, "from toddlers to grandparents." To increase its inclusiveness, all mall locations will be situated on the first floor, which makes access easier for the elderly and disabled, Schussler said.

The company went public in April and plans to open up to 50 locations worldwide over the next five years. The stores will become progressively larger, with a 23,500-sq.-ft. unit slated for the Chicago suburb of Schaumberg in October, and at least six mall and/or free-standing units of between 35,000 sq. ft. and 50,000 sq. ft. due in 1996, in markets like Orlando, Fla.; San Diego; McLean, Va.; and another California market. "Anywhere with high tourist traffic, population density and a lot of families," Schussler said.