Hmm... what a crappy way to let your employees & vendors know!
http://www.bizjournals.com/jacksonville/news/2016/07/18/220-riversides-sbraga-company-abruptly-closes.html?ana=e_jac_bn_breakingnews&u=tVR3HgRXhV5dp%2FXF%2FTB1Ew054a8ad2&t=1468855521&j=74942372
Maybe the fix was in from the get go?
http://www.bizjournals.com/jacksonville/news/2015/08/25/restauranteur-behind-sbraga-co-gets-hit-with.html
??? :-[
Can't say I'm surprised. Every time I was over there, that place was dead.
QuoteDinner business had been running smoothly, the employee said. The restaurant had, however, quietly closed its lunch business earlier in the year due to low foot traffic in Unity Plaza.
Low lunch foot traffic would be a result of not enough density in the immediate vicinity. That's pretty much the opposite of lunch traffic in the Northbank, where buildings are surrounded with other buildings and people (at least during office hours) as opposed to six lane streets, vacant lots and large surface parking lots. If we don't screw up Brooklyn's redevelopment by making it too autocentric at the pedestrian level, this issue should resolve itself as the area redensifies.
Quote from: thelakelander on July 18, 2016, 11:41:24 AM
QuoteDinner business had been running smoothly, the employee said. The restaurant had, however, quietly closed its lunch business earlier in the year due to low foot traffic in Unity Plaza.
Low lunch foot traffic would be a result of not enough density in the immediate vicinity. That's pretty much the opposite of lunch traffic in the Northbank, where buildings are surrounded with other buildings and people (at least during office hours) as opposed to six lane streets, vacant lots and large surface parking lots. If we don't screw up Brooklyn's redevelopment by making it too autocentric at the pedestrian level, this issue should resolve itself as the area redensifies.
Every time I go for a run or bike ride on Riverside Ave I am totally flabbergasted that there's this ridiculously absurd six lane road ripping through Brooklyn. Terrible. Hopefully whatever is built back up on those empty lots is urban and not like the Fresh Market or Gate Station, i.e. suburban style developments.
WTF? This was quick. I didn't even get to try it yet. Tough blow to the redevelopment of Brooklyn :/ But totally agree that this is a horrible way to let employees know.
Quote from: thelakelander on July 18, 2016, 11:41:24 AM
QuoteDinner business had been running smoothly, the employee said. The restaurant had, however, quietly closed its lunch business earlier in the year due to low foot traffic in Unity Plaza.
Low lunch foot traffic would be a result of not enough density in the immediate vicinity. That's pretty much the opposite of lunch traffic in the Northbank, where buildings are surrounded with other buildings and people (at least during office hours) as opposed to six lane streets, vacant lots and large surface parking lots. If we don't screw up Brooklyn's redevelopment by making it too autocentric at the pedestrian level, this issue should resolve itself as the area redensifies.
The lunch business isn't suffering in other parts of Brooklyn which have the same density and foot traffic. There's something else going on here.
I don't know that traffic near there is as much of an issue as:
- Visibility; they two back places have a tough time. Brixx on the other hand is visible from Riverside. This combined with....
- Style of Place: They focused on small plates, which can work (just ask 13 Gypsies), but truthfully while the food was good, I wasn't dying to get back there. I can't really put my finger on it, but while I love dining out and live in the area, I never was overwhelmed with this place, which I feel like you have to be to go to a place at this price point.
Quote from: Tacachale on July 18, 2016, 12:26:49 PM
Quote from: thelakelander on July 18, 2016, 11:41:24 AM
QuoteDinner business had been running smoothly, the employee said. The restaurant had, however, quietly closed its lunch business earlier in the year due to low foot traffic in Unity Plaza.
Low lunch foot traffic would be a result of not enough density in the immediate vicinity. That's pretty much the opposite of lunch traffic in the Northbank, where buildings are surrounded with other buildings and people (at least during office hours) as opposed to six lane streets, vacant lots and large surface parking lots. If we don't screw up Brooklyn's redevelopment by making it too autocentric at the pedestrian level, this issue should resolve itself as the area redensifies.
The lunch business isn't suffering in other parts of Brooklyn which have the same density and foot traffic. There's something else going on here.
It doesn't help, but agreed - the lower end places do just fine over there.
Quote from: Tacachale on July 18, 2016, 12:26:49 PM
Quote from: thelakelander on July 18, 2016, 11:41:24 AM
QuoteDinner business had been running smoothly, the employee said. The restaurant had, however, quietly closed its lunch business earlier in the year due to low foot traffic in Unity Plaza.
Low lunch foot traffic would be a result of not enough density in the immediate vicinity. That's pretty much the opposite of lunch traffic in the Northbank, where buildings are surrounded with other buildings and people (at least during office hours) as opposed to six lane streets, vacant lots and large surface parking lots. If we don't screw up Brooklyn's redevelopment by making it too autocentric at the pedestrian level, this issue should resolve itself as the area redensifies.
The lunch business isn't suffering in other parts of Brooklyn which have the same density and foot traffic. There's something else going on here.
"The upscale southern restaurant has been open for less than a year, opening its doors last November. It was Sbraga's first restaurant outside of Philadelphia, and it wasn't the first closure for the Top Chef winner.
A restaurant that he had opened in Philadelphia after Sbraga and the Fat Ham, Juniper Commons, closed after six months in late May of last year."
You may be correct.
Quote from: Tacachale on July 18, 2016, 12:26:49 PM
Quote from: thelakelander on July 18, 2016, 11:41:24 AM
QuoteDinner business had been running smoothly, the employee said. The restaurant had, however, quietly closed its lunch business earlier in the year due to low foot traffic in Unity Plaza.
Low lunch foot traffic would be a result of not enough density in the immediate vicinity. That's pretty much the opposite of lunch traffic in the Northbank, where buildings are surrounded with other buildings and people (at least during office hours) as opposed to six lane streets, vacant lots and large surface parking lots. If we don't screw up Brooklyn's redevelopment by making it too autocentric at the pedestrian level, this issue should resolve itself as the area redensifies.
The lunch business isn't suffering in other parts of Brooklyn which have the same density and foot traffic. There's something else going on here.
For what it's worth, other than Hobnob, you can see the rest from the street pretty easily. So visibility is another element to consider.
Quote from: camarocane on July 18, 2016, 11:40:58 AM
Can't say I'm surprised. Every time I was over there, that place was dead.
I went there this past Friday night for a birthday dinner and I said to myself, "this place is dead tonight". It was about 50% occupied with patrons.
I think it suffered from a few things, low visibility, density and proper street parking.
1. They've known they were closing for at least 3 weeks (I knew about this almost a month ago). Surprised nobody else knew, as it was sort of a 'known secret' amongst the industry and the neighborhood.
2. It'll be reopening under a new name/new menu. Spraga himself is out.
So much for beating Orsay.
Quote from: ben says on July 18, 2016, 01:37:20 PM
1. They've known they were closing for at least 3 weeks (I knew about this almost a month ago). Surprised nobody else knew, as it was sort of a 'known secret' amongst the industry and the neighborhood.
2. It'll be reopening under a new name/new menu. Spraga himself is out.
(http://mcallen.org/wp-content/uploads/2016/05/applebees.jpg)
^ not funny.
This is 100% about visibility when it comes to not attracting a lunch crowd with thousands of workers within walking distance at FIS, Black Knight, Blue Cross, Everbank, Raymond James, Law Firms, Haskell, etc.
The way they built this still doesn't make sense with the garage facing Riverside. Maybe one day if a hotel and 200 go in there it will make it more successful in that Plaza. However, the Fresh Market development kills it during lunch.
Quote from: FlaBoy on July 18, 2016, 02:48:02 PM
This is 100% about visibility when it comes to not attracting a lunch crowd with thousands of workers within walking distance at FIS, Black Knight, Blue Cross, Everbank, Raymond James, Law Firms, Haskell, etc.
The way they built this still doesn't make sense with the garage facing Riverside. Maybe one day if a hotel and 200 go in there it will make it more successful in that Plaza. However, the Fresh Market development kills it during lunch.
I don't think the design helps (and Phase 2 is MUCH better), but in the end I think it was about the place - it just didn't draw people. I knew it was there and went twice. Service was solid both times and the food I had was good, but if I'm going to do small plates, I'm going to 13 Gypsies - they just do it better. I just didn't find the place to be a draw for me.
I live at 220 and would welcome an Applebee's. The problem I am seeing is everyone wants to be 'up-scale'. Brooklyn is a neighborhood and the people who live here want places we can eat at every day. These up-scale places relying on Thursday-Friday-Saturday imports from the suburbs are never going to make it long-term. Price-wise they need to compete with the 2 local grocery stores because it is just as easy for me to walk to the grocery store and buy food as it is to walk to dinner.
^While I don't love the idea of an Applebee's, I agree with your discussion on price point, and while I didn't state it in my post well, that was part of my point. I'm not going to Spraga every night (and if it's a special occasion, then there are many other places I'd rather go), but I would go to Burrito Gallery on a random Tuesday night.
I think that more than anything is the issue.
Until the right restaurant (i.e., one that appeals to 220/The Brooklyn residents) comes in there, they'll all continue to struggle. Sbraga closing was no surprise, and could be a big opportunity to re-work the space into something more fitting to the demographic nearby and the vision of Unity Plaza.
Quote from: Steve on July 18, 2016, 05:49:37 PM
^While I don't love the idea of an Applebee's, I agree with your discussion on price point, and while I didn't state it in my post well, that was part of my point. I'm not going to Spraga every night (and if it's a special occasion, then there are many other places I'd rather go), but I would go to Burrito Gallery on a random Tuesday night.
I think that more than anything is the issue.
Exactly! Several times I have been in the process of getting food out of the pantry and have my girlfriend say, "Why don't we just walk over to Burrito Gallery instead." or "I feel like a burger instead of spaghetti; let's go to BurgerFi." She never once said, "Hey, I feel like $30 octopus instead of homemade tacos."
I am begging local restaurant owners - stop trying to be upscale all the time.
This is the best Western chef going.
Cookie!
Tell'em what they're gonna eat.
You ain't gonna be gettin'
no nouveau almondine thin crust...
...bottled water, sauteed city food.
Food's brown, hot-and plenty of it. - City Slickers 1991
From Kevin Sbraga's Instagram:
I want to take a moment to talk about today's events in the most candid way possible.
It was not Sbraga Dining who closed Sbraga & Company, locked employees out with no notice, and put up an "announcement" on the door. Sadly enough, I found out about this at the same time you did.
I have always cared deeply about my employees, and personally built the S&Co. team from the ground up. I'm heartbroken at how things have panned out. I'm sure there are questions on the specifics of the situation that I likely can't answer now, but please know none of this was under my control or my decision. I wanted to continue to thrive and grow in Jacksonville with the restaurant, and provide opportunities for my staff to do the same.
I felt deeply connected to Jacksonville before the restaurant even opened, and not just because I have family here. Jacksonville is a beautiful, vibrant city with an unparalleled culinary community. I'm honored to have been a part of that for the time I was here, and ask for your patience as we sort through this closure.
Sincerely,
Kevin Sbraga
I can only assume that they were so far behind in rent the property owner had no choice but to cut loses. I did notice what appeared to be suppliers yesterday trying to enter the restaurant, talking on their cell phones at the locked door, and taking pictures of the sign. They didn't look happy. Reminds me a little of Latitude 360.
Hmm. I never got to try this place out. Too bad.
Not to much new info, but they may update the article as calls are returned.
http://www.bizjournals.com/jacksonville/blog/morning-edition/2016/07/sbraga-company-says-closing-wasnt-its-decision.html?ana=e_jac_rdup
It's still Alex's.
Quote from: Non-RedNeck Westsider on July 19, 2016, 12:13:52 PM
Not to much new info, but they may update the article as calls are returned.
http://www.bizjournals.com/jacksonville/blog/morning-edition/2016/07/sbraga-company-says-closing-wasnt-its-decision.html?ana=e_jac_rdup
It may not have been his decision, but if it was closed due to him being behind on the rent, then it may as well have been. I'm not saying it was closed for that reason - but I find it odd that he is making such a point about it not being his decision, yet not providing any more details.
Quote from: stephendare on July 19, 2016, 02:01:05 PM
Quote from: Adam White on July 19, 2016, 01:53:31 PM
Quote from: Non-RedNeck Westsider on July 19, 2016, 12:13:52 PM
Not to much new info, but they may update the article as calls are returned.
http://www.bizjournals.com/jacksonville/blog/morning-edition/2016/07/sbraga-company-says-closing-wasnt-its-decision.html?ana=e_jac_rdup
It may not have been his decision, but if it was closed due to him being behind on the rent, then it may as well have been. I'm not saying it was closed for that reason - but I find it odd that he is making such a point about it not being his decision, yet not providing any more details.
Well, I don't know. People truly act like monthly payments on leases are quasi religious.
The guy spent a million and a half on the buildout, and lent his name and celebrity to the project.
A lease is really an agreement to trade money for time. So if you have a year long lease for a space at 1000 dollars per month, its actually a 12,000 dollar lease to use the property as though you owned it for a year. Thats why prices are quoted square foot per year. ($25 per sq ft. is not a monthly price in commercial renting)
The payments can be made regularly, or they can be made at one time. Or monthly or quarterly, or semi annually.
Once you've made the good faith of spending that kind of money on building out a space, its not like the landlord doesn't have equity as collateral. It would be a dickish move not to provide some communication or leeway or some alternate negotiation in a situation like this if it was just a matter of rent.
I oversee buildouts for a company nationwide, most of our deals are turnkey. The build out costs are rolled into the lease rate. Not 100% sure how retail builds go, but it is possible that happened in this case.
Quote from: stephendare on July 19, 2016, 02:01:05 PM
Quote from: Adam White on July 19, 2016, 01:53:31 PM
Quote from: Non-RedNeck Westsider on July 19, 2016, 12:13:52 PM
Not to much new info, but they may update the article as calls are returned.
http://www.bizjournals.com/jacksonville/blog/morning-edition/2016/07/sbraga-company-says-closing-wasnt-its-decision.html?ana=e_jac_rdup
It may not have been his decision, but if it was closed due to him being behind on the rent, then it may as well have been. I'm not saying it was closed for that reason - but I find it odd that he is making such a point about it not being his decision, yet not providing any more details.
Well, I don't know. People truly act like monthly payments on leases are quasi religious.
The guy spent a million and a half on the buildout, and lent his name and celebrity to the project.
A lease is really an agreement to trade money for time. So if you have a year long lease for a space at 1000 dollars per month, its actually a 12,000 dollar lease to use the property as though you owned it for a year. Thats why prices are quoted square foot per year. ($25 per sq ft. is not a monthly price in commercial renting)
The payments can be made regularly, or they can be made at one time. Or monthly or quarterly, or semi annually.
Once you've made the good faith of spending that kind of money on building out a space, its not like the landlord doesn't have equity as collateral. It would be a dickish move not to provide some communication or leeway or some alternate negotiation in a situation like this if it was just a matter of rent.
I would assume it would be down to the terms of the lease. For example, I have a 92 year lease on my flat. I am contractually required (by the bank) to make monthly mortgage payments. Of course, that's down to the bank in my case.
I've never rented anywhere and been allowed to pay my rent in a lump sum at any time other than up front. The situation is likely different for commercial spaces, but I would be pretty confident that a schedule of payments would have to be arranged in advance, not after the fact (by the lessee).
As far as this place is concerned, beyond not know the cause of this, we certainly don't know what leeway afforded by the lessor (nor do we know what was communicated).
He could owe a lot of money. Or it could be something else entirely.
Pretty sure John Valentino paid $900,000 just for the old gas station site where MM sits now, plus all the other square footage. That had to be at least an additional $1,000,000? Then he had new construction costs plus interior build outs, etc...................
$1.5 million seems pretty reasonable compared to that.
I'm not sure this restaurant had the traditional ownership structure that you guys are all assuming. Do you have evidence of Sbraga himself leasing the space and fronting the buildout costs? The information I have gathered points in a different direction. The abrupt closure and short timeline would indicate that Sbraga wasn't just behind on payments, but was ousted from the partnership.
Quote from: stephendare on July 19, 2016, 02:45:52 PM
Quote from: Adam White on July 19, 2016, 02:37:25 PM
Quote from: stephendare on July 19, 2016, 02:01:05 PM
Quote from: Adam White on July 19, 2016, 01:53:31 PM
Quote from: Non-RedNeck Westsider on July 19, 2016, 12:13:52 PM
Not to much new info, but they may update the article as calls are returned.
http://www.bizjournals.com/jacksonville/blog/morning-edition/2016/07/sbraga-company-says-closing-wasnt-its-decision.html?ana=e_jac_rdup
It may not have been his decision, but if it was closed due to him being behind on the rent, then it may as well have been. I'm not saying it was closed for that reason - but I find it odd that he is making such a point about it not being his decision, yet not providing any more details.
Well, I don't know. People truly act like monthly payments on leases are quasi religious.
The guy spent a million and a half on the buildout, and lent his name and celebrity to the project.
A lease is really an agreement to trade money for time. So if you have a year long lease for a space at 1000 dollars per month, its actually a 12,000 dollar lease to use the property as though you owned it for a year. Thats why prices are quoted square foot per year. ($25 per sq ft. is not a monthly price in commercial renting)
The payments can be made regularly, or they can be made at one time. Or monthly or quarterly, or semi annually.
Once you've made the good faith of spending that kind of money on building out a space, its not like the landlord doesn't have equity as collateral. It would be a dickish move not to provide some communication or leeway or some alternate negotiation in a situation like this if it was just a matter of rent.
I would assume it would be down to the terms of the lease. For example, I have a 92 year lease on my flat. I am contractually required (by the bank) to make monthly mortgage payments. Of course, that's down to the bank in my case.
I've never rented anywhere and been allowed to pay my rent in a lump sum at any time other than up front. The situation is likely different for commercial spaces, but I would be pretty confident that a schedule of payments would have to be arranged in advance, not after the fact (by the lessee).
As far as this place is concerned, beyond not know the cause of this, we certainly don't know what leeway afforded by the lessor (nor do we know what was communicated).
He could owe a lot of money. Or it could be something else entirely.
Sure, the terms are important, but you do know that you can pay an entire year of rent ahead, any time that you like.
I made the post to point out that there is always room for negotiation, if both parties are willing.
And there are sound reasons for this.
For example, it was very hard for Toney Sleiman to convince established chains to sign leases with him because of the reputation he had with mom and pop start ups. Once you get a reputation as a risky place to conduct business, doors close for you. Look no further than the commercial district of Springfield for an example. It remained dead for ten years, whilst districts less renovated surged ahead in commercial activity. Its only now beginning to pick back up, with the pro business leadership of Christina Parrish and the other newcomers at SPAR.
Can you imagine that the next place in that space will be willing to spend more than a million, and a lot of national mentions of the restaurant to help market it?
I acknowledged in my post that you could do it up front. But anyway, I am not fussed. I don't know why the place was locked up and I'm as curious as anyone else to find out why. It's a real shame, regardless.
It's my understanding that it was Hallmark's money and Sbraga licensed his brand to the restaurant and served as a consultant. Hallmark has moved on from this concept and is working with a new tenant for the space.
It not being his first project to close like this, I have a very hard time believing that any part of his released statement is true. #sbrexit
Ive dealt a lot with these types of buildouts in several capacities. What I've seen more of lately is the landlord providing all of the buildout costs including kitchen equipment in return for an operating lease from a well known/brand chef or chain. the chef often times is part of an operating group/partnership. If expectations of the landlord are not met and/or there is a shakeup in the operating group, typically, the landlord will bring in another operator. A lot of times the closure is brief but in this instance since the branding is Sbraga, it will probably take longer to rebrand.
The restaurant has not been open long enough for it to be a strictly rent issue. I'm not sure we will ever know the entire back story. I for one am just hopeful the landlord brings in a new operator that will attract even more traffic with their cuisine.
How long should it take to break even on a $1.5 mill purchase/build out? How do investors make money at this? Just curious from a business perspective. You would have to sell a lot of burgers and such.
Quote from: kaitlynrosesullivan on July 19, 2016, 04:40:08 PM
It not being his first project to close like this, I have a very hard time believing that any part of his released statement is true. #sbrexit
Pretty solid first post, assuming you came up with that hashtag.
QuoteEvery time I go for a run or bike ride on Riverside Ave I am totally flabbergasted that there's this ridiculously absurd six lane road ripping through Brooklyn. Terrible. Hopefully whatever is built back up on those empty lots is urban and not like the Fresh Market or Gate Station, i.e. suburban style developments.
Well, it used to be 4 lanes, then FDOT decided it needed to be 6 lanes. If you don't like Brooklyn now, you would have hated the moon-like look before anything was built on it once all the buildings and structures were leveled to make way for the 6 lane strip.
We call that "Progress" here in Jax!
Quote from: Captain Zissou on July 19, 2016, 03:35:47 PM
It's my understanding that it was Hallmark's money and Sbraga licensed his brand to the restaurant and served as a consultant. Hallmark has moved on from this concept and is working with a new tenant for the space.
https://youtu.be/9aKj777atio?list=PLUY2k-bGR9Hx24nYtxtDeEF7mcUPmwOVD (https://youtu.be/9aKj777atio?list=PLUY2k-bGR9Hx24nYtxtDeEF7mcUPmwOVD)