Do deposits and donuts mix? How shared retail space lowers costs and brings in business

Do deposits and donuts mix? They do for CBC Federal Credit Union, which recently opened a unique shared retail space in partnership with Dunkin’. As branches downsize and competition for retail space heats up, these types of partnerships are becoming an attractive option for financial institutions.

When it comes to downsizing, many institutions find themselves sitting on more space than they need, while others struggle to find ideal locations in competitive markets. Shared retail space can be a solution to both of the problems. If your organization owns the property, leasing excess space can bring in revenue. If you’re looking for a new location, partnerships can open up more opportunities.

Either way, the right partner will bring in a significant amount of foot traffic and introduce you and your brand to a large portion of the population who may not have considered a credit union or community bank. Let’s take a look at the CBC FCU case study and see how it worked out for them.

CBC’s branch space in Camarillo, California was 4,700 square feet, about twice the size needed to operate effectively in the market.  CBC had inhabited the space for 25 years and wanted to find a creative way to update it, while also maximizing use of the real estate and increasing branch foot traffic. Their partnership with Dunkin’ on a shared space concept not only offers patrons donuts and coffee, but also exposure to the credit union and convenient access to their services. Keep in mind that only 28% of non-members are likely to join a credit union, but that number jumps to 75% if they’ve been introduced to one. The two organizations are leveraging the overlap in their targeted demographics and offering complimentary services that will drive foot traffic for both, and CBC gets rental income that offsets branch operational costs.

This strategy isn’t right for every branch, but it’s worth taking a second look at your network and properties with shared retail spaces in mind. Do you have any branches that you’re downsizing in a location you’d like to keep? Do you have branches where more foot traffic would help achieve your goals? Is there a property in one of your markets that check every box, but the footprint is just too big? Those problems might just be opportunities.

And as always, don’t forget that the Momentum team has your back. Feel free to reach out and discuss any issues you’re facing. We’re here to help!

Michael Downs

Michael Downs

Michael Downs is the Vice President of Client Solutions at Momentum, a strategic design-build partner that takes a people centric approach to helping credit unions across the nation thrive. Web: Details