Manhattan Food and Bar Leasing Up Double Digits

Across the city, landlords want a seat at the table.  More specifically, they want the seats, and they want the tables inside their buildings.  Fast-casual restaurants, coffee shops, and juice bars are expanding across Manhattan, driven in part by a large millennial workforce and dense, wealthy demographic.

Also, though, as consumers behaviors have changed, opportunity has opened up for foodservice operators.  More and more retail and apparel is being purchased online, which has caused these companies to trim store sizes.  Now, with new inventory available, restaurants are building new locations even faster.  In 2015, the fast-casual segment grew to $44 billion nationwide–an 11.5% increase from 2014, according to Technomic.

Similarly, Manhattan lease transactions in the food and bar category increased 22% in 2015 over 2014, Cushman & Wakefield reports.  Meanwhile, drugstore leases were down 64% and apparel and accessories retails were down 22%.

Where banks and retailers once occupied large-footprint spaces, some landlords are building out food halls or dividing spaces into smaller units.  “You’re getting more [rent] than what a single tenant would pay,” said Brett Herschenfeld, SL Green Managing Director.

To read more, click here.

 

Bringing Concepts to New York City

It’s not news that the New York City hospitality industry is unlike any other in the world. With over 40,000 restaurants, New York is a mecca for foodservice. While this presents a great opportunity for operators from elsewhere, it is also not to be taken lightly—the NYC market is competitive and volatile. As advisors, it is our responsibility to ensure your success. The following is a brief overview of the work we do to achieve that:

Fully Understand the Concept
This means going to the source. As advisors, it’s of utmost importance that we really comprehend the entire experience—from product, to packaging, to interior design, to the location, to the culture. We need to understand what makes your business work where it is in order to properly plan out how it will succeed in New York City. Whether you operate in San Francisco or Sao Paulo, we will come to you to do our due diligence. Last month we were in Mexico City! (Stay tuned for more details!)

Refine the Concept
Next, we identify where your concept fits in the current landscape—is it entirely new, or is there already direct competition? Based on this, we begin to refine the concept accordingly. Any adjustments we suggest are driven by what will generate revenue. We want to maintain the authenticity and soul of the enterprise but ensure that it resonates with the NYC market.

In the same vein, we want the concept to appeal to a similar demographic. New York City is not one large homogeneous pot; it is a stew of different neighborhoods with different characteristics. As such, a high-volume, fine-dining concept from Japan that is frequented by businesspeople with high disposable incomes won’t fare well in Red Hook. We’re going to make sure you open in the right place.

Plan Accordingly
Once we’ve defined the concept for New York, we can honestly develop a business plan. Now, we can put the vision on paper and tie it to financials and a timeline.

Capital and operating budgets come from cold, hard data. We analyze your menu, equipment needs, labor scheduling, sales mix, floor plan, goals and vision, like concepts, menu pricing, average check, traffic counts, and market rents to flesh out a realistic budget. A steakhouse requires drastically different equipment and seating types than a coffee shop.

New York City is known for moving quickly—but that’s not actually case with restaurant development. Finding the right space, getting Department of Buildings approval, getting ConsolidatedEdison to turn on your gas, getting a certificate of occupancy, sourcing the right ingredients and finding the right team, and getting a cooperative’s board to approve plans are just a few of the items that can dramatically slow down the pace of a project. We’re going to make sure you open on time and on budget.

No matter where you’re from or what your model, we’re ready to bring it to life in New York City. Our town is booming with opportunity for those properly prepared—we’re here to shepherd you to success.

Openings: Dominique Ansel Kitchen

Screen Shot 2015-04-28 at 11.23.31 AMTomorrow, the much-anticipated Dominique Ansel Kitchen will open its doors to the West Village. The Cronut king has taken the industry by storm developing hybrid desserts and he plans to take things to the next level with his newest endeavor. Dominique Ansel Kitchen will be the first of its kind bringing bakery retail together with restaurant service. According to their newly launched website 70% of the menu will be made to order.

Dominique Ansel names time as an ingredient, placing importance on the care and process that goes into each pastry. The bakery vows to offer the “best and most genuine versions of pastries…at the perfect time for you to eat it”. Menu speculation includes chocolate mousse, baba au rhum, beignets, mille-feuille and very buttery lemon tarts that are all prepared a la minute with a one to two minute prep time. Additionally, the bakery will offer savory options including garlic bread croissants and béchamel filled squid ink toasts.

Ansel announced earlier this month that 26-year-old Karys Logue would be his Executive Chef overseeing both Dominique Ansel Kitchen as well as the original Dominique Ansel Bakery. Logue first crossed paths with Ansel when they worked together at Daniel and since she has perfected her skills as sous chef at Café Boulud as well as executive pastry chef at Sepia and Tessa.

Dominique Ansel Kitchen, 137 Seventh Avenue South (10th Street), 212-242-5111, dominiqueanselkitchen.com

Shake Shack Expanding In Japan

Shake Shack raised $105 million in its initial public offering last month and now plans to push the expansion overseas. Shake Shack’s largest presence is in New York with fifteen shops, but also has other shops within the US and a few overseas including London, Istanbul, Moscow and Dubai. The burger chain plans to open ten more and grow to roughly 450 shops.

Shake Shack signed a licensing agreement with a Japanese company, Sazaby League Ltd., which has opened Starbucks coffee shops in Japan in the past. The goal will be to open ten Shake Shack shops in Japan by 2020. A Tokyo restaurant is expected by next year. The Japanese Shake Shack restaurants will have the same Shake Shack menus with the same burgers, shakes and crinkly fries and their infamous frozen custards. For more information on Shake Shack’s expansion overseas in Japan, click here. 

Grocery Stores As Social Destinations

Given that more and more grocery store customers are turning towards delivery services, Whole Foods has decided to add in-store dining and bar options. In the Chicago area, Whole Foods is undergoing a six-store expansion. President of Whole Foods’ Midwest region, Michael Bashaw, states,“Simply put, we’re looking for ways to make the places more appealing, if bricks-and-mortar (grocers) are going to survive, they must offer a compelling experience to customers.”

Whole Foods will be partnering with an outside operator, Raw Foods, to open an in-store location that features branded  raw foods and vegan dishes. There will also be a full-service bar and an expanded coffee stand that will hopefully cater to neighborhood residents and workers. Whole Foods is strongly attempting to diversify its supermarkets away from being solely a place to shop to more of a social destination.

To read more about the Whole Foods six store makeover in Chicago area, click here.

Burger King Acquiring Canadian Coffee Chain Tim Hortons

Burger King announces on Tuesday that they are acquiring the Canadian coffee and doughnut chain Tim Hortons in an $11 billion dollar deal. The aim is to convert Tim Hortons into a major player in the breakfast business in and outside of Canada. The new company will become one of the fastest growing fast food chains globally according to Burger King’s executive chairman, Alex Behring. Tim Horton’s could help Burger King become a part of the coffee and breakfast market within the USA which are currently controlled by Starbucks, Dunkin’ Donuts and McDonald’s. CEO of Tim Horton’s, Marc Caira, has mentioned the chain plans to re-design the stores to include couches and fireplaces as part of the efforts to be more noticeable in the U.S. Both parties will benefit from the deal, as Caira states that Tim Hortons will “win much quicker” within the U.S with Burger King’s help.

The lack of brand recognition will cause a struggle for Tim Horton’s to establish a clientele, especially while Starbucks is expanding its breakfast offerings and TacoBell are launching a national breakfast menu. McDonald’s also has plans to amp up the marketing for their breakfast business. Hopefully the newly partnered companies of Burger King and Tim Hortons will be able to successfully compete. The chains will continue to run independently in the sense that whoppers will not be on Tim Hortons menus, neither will doughnuts be offered at Burger King. CEO of Burger King Daniel Schawrtz states, “There’s no plans to mix the products or do co-branding.”

The new company will have roughly $23 billion in sales and over 18,000 locations after the deal is complete early next year. To read more about the acquisition and implications, click here

 

 

Murray’s Cheese Expands Store and Menu

Murray’s Cheese Shop in Greenwich Village has moved their cheese cave to Queens!  The relocation of the cave has opened up more space for the kitchen, prepared foods area and grocery store. In addition to relocating the cheese cave, they have also acquired an additional 1000 square feet of retail space. Classroom spaces have been built on the upper level of the shop to host  seminars and tastings.

Check out some photos of the new space here