Starbucks on Franklin Ave?

whynot_31

Starbucks opens on Thursday, September 27th.

They signed a lease for $25k a month, for 15 years.

theburgerking

Wow! 25k.. Just walked by. It's ten o clock Tuesday night and there are about fifteen people in their working. Money, money, money..

whynot_31

They have to pay a penalty if isn't ready on time.    

BTW, here's the photo of the day:

Ah, to be idealist and in one's 20s.

I just state over and over:    It is isn't about what an area needs.   It is about what an area will support.

Esperanza

They'll wisen up in their 30s when all the idealism has been snuffed out;) For now, let them keep it. We older folks can live vicariously.

chekhovian

I'll be impressed if they're out there when the Starbucks shop actually opens.

That $25k/month seems absurd, but $4.5M for that space over 15 years makes more sense. They will be locked into that rate when other spaces are going for a lot more.

whynot_31

Yes, it is the 15 year part that is really the kicker, and it should help readers understand why the owner of the former location of Climax (St Johns and Franklin) is in no hurry to fill it.

As a result of Starbucks "almost Climaxing", the owner has good reasons to believe that a similar tenant could be secured.

Can you imagine the being the owner of a sneaker and clothing store, and getting that kind of payday for simply keeping the place in a state of good repair?

In such an environment, a smart landlord does not fill the property with a temporary tenant; one leaves it vacant so prospective tenants can imagine their business.

http://www.brooklynian.com/discussion/37564/the-vacant-spot-left-by-climax-775-franklin-corner-of-st-johns/p1

One can walk down Franklin Avenue and confidently point to the businesses that will not survive their next lease renewal. Given the area's demand, expect those properties to remain vacant for a longish period of time, until the right tenant is found.

goldemi1

the sbux place is looking good, buildout going fast.  i've no doubt it will do really really well.  i just dont get a place like Forte going into old nimba space, assuming they knew about sbux coming and the landlord issues.  good luck to them all, but there must be a tipping point.

chekhovian

Starbucks very possibly just raised everybody's rent within a five or ten block radius of Franklin & EP.

That's exactly right about the former Climax storefront. By simply comparing the price of the Starbucks space, they can recoup all the rent they lost not leasing to a tenant for the months it's been vacant.

Or, who knows, maybe the visibility of being steps from EP, Franklin and the one of the busiest subway stops in Brooklyn is a unique real estate venture that (let's hope) won't entirely change the game.

whynot_31

A friend of mine knows the GC that is overseeing the buildout.

The combined cost of the plumbing, electrical and fixtures is over $1M.

....the Starbucks staff has already been hired, and is presently working at other locations. They will show up fully trained on Sept 27th.

rogers_sterling

Saying that Crown Heights "doesn't need a Starbucks" shows a bit of a myopic view, albeit one that maybe I would have held when I was those kids' age. If that Starbucks creates jobs in our neighborhood, that's a positive.

Disclaimer--I'm writing this from a Starbucks in Manhattan.

whynot_31

Take a mental photo of your barista, you might see them again in CH on the Sept 27th.

Note to readers: You don't have to go to Starbucks, others will.

mugofmead111

Take a mental photo of your barista, you might see them again in CH on the Sept 27th.

I hardly go to the one near where I work because the lines are too long in the morning, but it'd be trippy to see one of the regular baristas on Franklin Avenue.

I wonder whether this Starbucks would be open until 10 pm like the one steps from the 7th Avenue subway station.

ap

I'm amazed by how fast the interior of this Starbucks has taken shape.

whynot_31

I am not.

Starbucks has the resources to create detailed RFPs, and then award the jobs to vendors who have proven themselves and want future work.

http://visiblecc.com/planroom/wp-content/uploads/2013/11/Bid-Set-Plans-Starbucks-Brooklyn-EastParkway_CDs_05-23-14_MEP.pdf

crownheightster

So, if I've done the math correctly...

$25,000/month lease means that they have to sell a minimum of $834 of goods per day in order to just make rent (assume a 30 day month). If they are open from 6-9pm, that is 15 hours per day, and they need to sell $55 worth of goods per hour of operation to make rent.

I don't think they are going to have trouble making a profit, even after expenses for labor, product, and utilities. In a year or two, once the massive new developments are filled with people who did not know Franklin Ave before Starbucks, and who are focused on getting their morning coffee/breakfast in a hurry, that $25,000/month lease is going to become even less of a burden.

whynot_31

Yup. And, when and if the store ever fails to make a profit, it will be closed.

http://www.nbcnews.com/id/25482250/ns/business-us_business/t/starbucks-close-stores-us/

...and life will go on.

mcpoet

I'm not a fan of Starbucks and doubt I'll ever go in there.  I too protested Starbucks in my twenties, though that had more to do with advocating that they not use GMOs and dairy with rBGH.  Them standing out there pointing out that a Starbucks will soon be opening probably serves more as advertising for Starbucks than anything else.

rogers_sterling

I for one hope that Pulp and Bean starts a heavy campaign of sarcastic chalkboard sign comments directed at their new corporate neighbor. That should be fun.

whynot_31

I recently talked with Tony (owner of Pulp and Bean) about how he planned to proceed.

He seemed to accept that fighting a unwinnable war is silly, and that he would retool P&B into a salad bar when/if selling coffee is no longer profitable. ....Needless to say, he has the vegetables that would be needed nearby.

chekhovian

He should consult the short lifespan of Bella Greens on how not to operate his salad bar.

I think there will be a good deal of anti-Starbucks folks who will go to Pulp & Bean in spite of its neighbor.

eastbloc

Or go to neither, because they enjoy good coffee (RIP Glass Shop).

crownheightster

What is the story of Bella greens?

chekhovian

It was a salad bar that lasted about six months b/w Sterling and Park. That's the problem with failed business - people forget they fail and then try to open their own version of the previous failure.

whynot_31

Tony certainly hopes his present customers will remain loyal, but is well aware that much of his business comes from people passing thru the area.

They may go to the familiar Starbucks.

Re: Bella Greens. It failed for many reasons, most of which do not apply to Tony. He can run a business, and understands meeting the means and preferences of enough people to stay in business...

mike dunlap

I'm amazed by how fast the interior of this Starbucks has taken shape.

Same here.  Pretty impressive operation.

xlizellx

Tony certainly hopes his present customers will remain loyal, but is well aware that much of his business comes from people passing thru the area.

They may go to the familiar Starbucks.

Re: Bella Greens. It failed for many reasons, most of which do not apply to Tony. He can run a business, and understands meeting the means and preferences of enough people to stay in business...

Bella Greens failed because the owners could not run a business.  30 minutes for a salad was the norm.  I tried to go often and was just too frustrated.  I once ordered chopped egg on my salad...and they proceeded to take out a pot to boil some water in.  A small store-front that was only for to-go salads will not survive when your entire lunch break is taken up ordering - and that is assuming no one else was waiting ahead of you.

whynot_31

Bella Greens also lacked economies of scale, causing them to have to pay almost retail for their ingredients.

...whereas Tony has economies of scale and an established complimentary brand.

dac545

Just for reference, Bella Greens was in the tiny space that now is a clothing store next to J's Wong, just south of Park Place on Franklin.  This space also used to be a tattoo parlor. 

Davina

I never went to Bella Greens, but I think a salad bar (with a quicker service and a lot of toppings to chose from) sounds excellent.

whynot_31

They have to pay a penalty if isn't ready on time.    

BTW, here's the photo of the day:

Ah, to be idealist and in one's 20s.

I just state over and over:    It is isn't about what an area needs.   It is about what an area will support.

Picked up by Brownstoner today: http://www.brownstoner.com/blog/2014/09/two-protest-crown-heights-soon-to-open-starbucks/#comment-1574452

Some of their comments are worth reading.