Feeds:
Posts
Comments

Posts Tagged ‘franchise’

IhopAfter weeks of rumors and negotiations, it’s finally official: the lease for a 5,400 square foot IHOP at 1019 Surf Avenue in Coney Island was signed on Thursday, broker Joe Vitacco told ATZ. The franchisee who will be operating the restaurant is Bryan McKenzie, who owns an IHOP in New Jersey. Construction is expected to take about four months after the landlord completes the vanilla shell.

The one-story building at 1019 across the street from Luna Park is a longtime furniture store, which is not among the use groups permitted by the zoning. The space is being subdivided into six storefronts by the landlord and the stores are in the process of getting new street numbers. IHOP will combine the three stores on the far left and the soon-to-open Subway Cafe has the one on the right. Two remaining storefronts totalling 3,000 square feet are expected to be snapped up by another franchisee.

Why is Surf Avenue becoming a mecca for franchises? “The franchise is a preference of the landlords in Coney Island,” says Vitacco, who has leased space on Surf Avenue to Johnny Rockets, Subway Cafe and Rita’s Italian Ice, as well as to Brooklyn-based bakery Piece of Velvet for their third store. On Mermaid Avenue, he has leased to such Mom & Pops as a fish store and a Chinese bakery, as well as a Jamaican patty store franchisee.

Surf Avenue

1209 Surf Avenue in Coney Island. Store with shuttered gates is the future home of IHOP. January 25, 2015. Photo © Tricia Vita

“First of all, the franchisees are better funded. They are required to have half a million to two million in assets. They are trained and helped by the franchise company and have a high chance of success.” Many also own multiple businesses, which enables them to spread the risk. The Johnny Rockets franchisee owns several other franchise restaurants, Vitacco says.

Unlike Manhattan, where Mom and Pops are being forced out by landlords who triple the rent and then turn around and lease to chains or upscale businesses, many of the new franchises on Coney Island’s Surf Avenue are replacing illegal furniture stores which have existed for years in defiance of the zoning. Amid the influx of already opened national chains and franchises such as It’Sugar, Applebee’s, Rita’s Italian Ice, and Dunkin’ Donuts on Surf Avenue, there have also been a few new Mom & Pops like Lunatics Ice Cream and Luna Park Cafe, which have no connection to Luna Park.

The relatively large size of the stores is also a factor. The average price per square foot on the north side of Surf is $50.00 per square foot, Vitacco tells ATZ. On Mermaid Avenue it is $45 per square foot. “The difference in price from space to space depends upon the amount of landlord work. A space can be rented in ‘as is condition,’ as a Vanilla Box or as built to suit. The conditions will affect the rent.”

Asked why we aren’t seeing more a diversity of businesses instead of all restaurants and food? Is it too expensive? Vitacco says, “Because food pays the highest per square foot. Remember on Surf Avenue we are limited by the Coney Island C7 special zoning.”

Sky Rapids Ride

Sky Rapids Ride at 1223 Surf Avenue and Arcade at 1217 Surf Ave. Coney Island. January 1, 1979. Photo by Abe Feinstein via Coney Island History Project

According to the rezoning of 2009, permitted uses include:

–Open and enclosed amusements with limited accessory retail. Amusement uses would also include virtual reality and simulated gaming, dark rides, recreational sports facilities and water parks.

–Restaurants of any size, including those with entertainment and dancing. It would also include other complementary uses to amusements uses such as performance venues, bathhouses, breweries, tattoo parlors or wedding chapels.

–Retail and service uses complementary to amusement uses and beach activities such as arts and crafts production and sales, bicycle sales and repair, gift shops, and beach furniture stores. These uses would be limited in size and frontage.

Related posts on ATZ…

January 29, 2015: Coney Island 2015: Subway Cafe, Sushi Lounge, IHOP, Checkers, Johnny Rockets

December 5, 2014: Wahlburgers Burger Franchise to Open in Coney Island

September 11, 2013: Subway Cafe to Replace Furniture Store on Coney Island’s Surf Ave

December 19, 2012: Will Coney Island’s Surf Ave Become a Mecca for Franchises?

Read Full Post »

Wahlburgers Coney Island

The location of the Wahlburgers celebrity burger franchise opening in Coney Island was publicly revealed for the first time today when signage went up on Thor Equities’ retail building. It’s no surprise –Coney insiders had already guessed because there’s one vacant retail space built for a restaurant and no other comparable spot for lease in the amusement area. In addition to the ground floor, the restaurant space offers rooftop seating.

The sign says “Coming Spring 2015 – Wahlburgers – Our Family – Our Story – Our Burgers” and promotes their website. The next guessing game is when the celebrity brothers–Donnie, Mark and Paul Wahlberg– and a TV crew will turn up in Coney for a site visit. A May 1st opening date was previously announced.

The Wahlberg family’s adventures in the burger business is the subject of an A & E TV reality series that debuted in January 2014. The Coney Island location and the store’s opening are being scripted into the show’s 2015 season.

The building on Surf and Stillwell Avenues across from Nathan’s Famous has been long touted by Thor as “The Retail Ride of a Lifetime.” Current tenants include It’Sugar, Rainbow Shop, Surf & Stillwell Brooklyn Apparel Co. and two mini-arcades required by the City’s zoning law. Wahlburgers’ immediate neighbors will be the Brooklyn Nets Shop and Brooklyn Rock, which sells hand-printed clothing and gifts.

The company announced in December that New York-based franchisee Big Apple Burgers is preparing to launch six restaurants in Manhattan and one in Coney Island. Wahlburgers will join a number of other national chains and franchises slated to open this year in Coney Island. As ATZ reported earlier this week, Johnny Rockets, Checkers, and Subway Cafe are currently under construction, IHOP is finalizing a lease deal, and the Boston Beer Corporation got a license to operate a brewery to house their Coney Island Brewing Company division.

Related posts on ATZ…

January 20, 2015: Boston Beer Corp’s Coney Island Brewery Gets Conditional Approval from NYSLA

January 29, 2015: Coney Island 2015: Subway Cafe, Sushi Lounge, IHOP, Checkers, Johnny Rockets

December 5, 2014: Wahlburgers Burger Franchise to Open in Coney Island

December 19, 2012: Will Coney Island’s Surf Ave Become a Mecca for Franchises?

Read Full Post »

Subway Cafe

Subway Cafe, Surf Avenue. January 25, 2015. Photo © Tricia Vita

More than two years after ATZ posted “Will Coney Island’s Surf Ave Become a Mecca for Franchises?” (December 19, 2012), the trend continues. Across the street from Luna Park, an IHOP is finalizing a deal to open a pancake restaurant while a Subway Cafe has their sign up and is set to open a year-and-a-half after signing a lease. New FEMA regulations after Sandy are partly to blame for construction delays at Subway Cafe, a restaurant concept featuring “Tuscany-style decor” aiming for a “coffeehouse ambiance” and a layout a little larger than an average Subway.

Sushi Lounge

Sushi Lounge, Surf Avenue at W 12th Street. January 25, 2015. Photo © Tricia Vita

Amid the influx of already opened national chains and franchises such as It’Sugar, Applebee’s, Rita’s Italian Ice, and Dunkin’ Donuts on Surf Avenue, there have also been a few new Mom & Pops like Lunatics Ice Cream and Luna Park Cafe (no connection to the park). An outpost of Piece of Velvet, a cake and cupcake shop with locations in Fort Greene and Harlem, is opening across the street from old-time Mom & Pops Williams Candy and Pete’s Clam Stop

Sushi is coming to the corner of Surf Ave. and West 12th Street, across the street from Coney Island USA. Shalyapin Wonderwheel Karaoke (no connection to Wonder Wheel Park) morphed into Surf 12 Club and Lounge, which features live music, but their newest sign says “SUSHI LOUNGE.” A spokesman told ATZ they wanted to do something different. A new display case stood ready to serve desserts. Quartet of Catastrophe will play on Friday at 9:30pm.

Applebee's

Signs in Applebee’s windows on Surf Avenue. January 25, 2015. Photo © Tricia Vita

Applebee’s, which opened in June 2013, has proven popular with locals and extended its hours. Multiple signs on the street and one in the sky announce they now serve breakfast daily from 8am till 12 noon. A sideshow banner for Gary Dreifus’ “Magic at Coney!!!” graces the window. After completing its run at Coney Island USA, the magical variety show has moved across the street to Applebee’s second floor for Sunday performances in the winter.

Unlike Manhattan, where Mom and Pops are being forced out by landlords who triple the rent and then turn around and lease to chains or upscale businesses, the new franchises on Coney Island’s Surf Avenue are replacing illegal furniture stores which have existed for years in defiance of the zoning. Until the early 1980’s the north side of Surf was home to individually-owned penny arcades and a variety of rides including bumper cars, carousels and even a Jumbo Jet-style coaster. By the time the last ride– Coney Island’s B & B Carousell — closed in 2005, the north side was known as the wrong side of Surf Avenue to locate a business because of the lack of foot traffic. Not any more.

Checkers Coney Island

Checkers in Stillwell Terminal, Surf Avenue. January 25, 2015. Photo © Tricia Vita

Two other previously announced and long under construction franchises that are expected to open in 2015 are Checkers in Stillwell Terminal, which has finally put its sign up, and its next door neighbor, Johnny Rockets. Like Subway Cafe, these businesses have been delayed by new and ever-changing post-Sandy building regulations. Johnny Rockets is waiting for approval of a storm surge resistant front to resume construction.

Just off Surf, on Stillwell Avenue, Thor Equities’ retail building is the site of New York City’s first Wahlburgers –Donnie, Mark and Paul Wahlberg’s burger franchise– opening in May and written into the script of the Wahlberg’s reality show on A & E.

UPDATE January 30, 2015:

The Coney Island Brewing Company, whose craft beers celebrate the iconography of Coney Island, may soon have a place to call its own on Surf Avenue. Boston Beer Corporation, which applied in September for a license to open a brewery under the trade name Coney Island Brewing Company at 1904 Surf Avenue, received a conditional letter of approval from the NY State Liquor Authority last week.

Johnny Rockets Coney Island

Johnny Rockets, Surf Avenue, January 25, 2015. Photo © Tricia Vita

Related posts on ATZ…

May 26, 2014: Photo Album: Opening Day for 5 New Businesses & Exhibits in Coney Island

January 3, 2014: New Year, New Franchise: Rita’s Italian Ice Coming to Coney Island

September 11, 2013: Subway Cafe to Replace Furniture Store on Coney Island’s Surf Ave

February 13, 2013: Thor’s Coney Island: Candy Retailer It’Sugar to Open Surf Ave Store

Read Full Post »

Wahlburg family

The Wahlburg family at last month’s grand opening of Wahlburgers Toronto

Wahlburgers, a burger restaurant founded in Boston by the three Wahlberg brothers–actors Mark and Donnie, and chef Paul Wahlberg– is the latest national chain set to come to Coney Island. The company announced today that New York-based franchisee Big Apple Burgers is preparing to launch six restaurants in Manhattan and one in Coney Island.

“We’re confident that our knowledge and expertise will be a great asset to the Wahlburgers brand,” said John Cestare of Big Apple Burgers. “It’s exciting to partner with the Wahlberg family and brand knowing we share the same values and family-work culture.” Ten days ago, John Castare registered the name “Coney Burgers LLC” after registering “Big Apple Burgers LLC” earlier in November. Since the deal has just been signed, no info on the franchise’s location has been released yet. (Update: here it is!)

The Wahlberg family’s adventures in the burger business is the subject of an A & E TV reality series that debuted in January. The Coney Island location, which is expected to open in May, will be scripted into the show. After opening the first restaurant in 2011, they made deals to open locations in Las Vegas, Philadelphia and Toronto. Today’s announcement also included 20 franchise locations in Florida.

Wahlburgers

Wahlburgers menu via Wahlburgersrestaurant.com

Will the Wahlbergs’ celebrity help them win the hamburger market share in Coney? Boardwalk mainstays Nathan’s, Tom’s, Ruby’s, and Paul’s Daughter have burgers on their menus as does Peggy O’Neill’s on Surf Avenue. White Castle Express serves their sliders at two seasonal locations in Luna Park. Burger franchises currently under construction in Coney include a Checkers in Stillwell Terminal and a Johnny Rockets next door. The Johnny Rockets as well as a Subway Cafe on the north side of Surf have faced construction delays due to post-Sandy FEMA regulations requiring them to raise the floor by 2-1/2 feet. “Some of the regulations they’re making up as they go along,” broker Joe Vitacco told ATZ.

No word on the status of the Burger-Fi which Thor Equities’ Glenn Vogel said last spring was coming to their retail building on Stillwell. Has Wahlburgers grabbed that spot, which includes a roof deck? It’s a pretty good bet. Rumor has it that’s the location and it’s set to be revealed during the reality show. Check back for updates.

UPDATE January 31, 2015:

The location of the Wahlburgers celebrity burger franchise opening in Coney Island was publicly revealed for the first time today when signage went up on Thor Equities’ retail building on Stillwell Avenue.

Related posts on ATZ…

November 18, 2014: Coney Island Brewing Co. Applies for License for Surf Ave Brewery

May 25, 2014: Photo Album: Opening Day for 5 New Businesses & Exhibits in Coney Island

September 11, 2013: Subway Cafe to Replace Furniture Store on Coney Island’s Surf Ave

December 19, 2012: Will Coney Island’s Surf Ave Become a Mecca for Franchises?

Read Full Post »

Little Caesars

Little Caesars $5 Pizza at Thor’s Retail Building at Surf and Stillwell. May 31, 2014. Photo © Tricia Vita via flickr

The latest chain to put its name on the glittering marquee of Thor Equities building in the new Coney Island is Little Caesars Pizza. Over Memorial Day Weekend, there was a cart selling Little Caesars “Hot-n-Ready” $5.00 pizzas in front of Thor’s building at Surf and Stillwell. The price was right and they sold out. Afterwards, signs remained taped to the outside of the window advertising the food franchise. We wondered if it was a tryout by a franchisee or guerrilla marketing. The official sign for “Little Caesars Express” went up last week. The Detroit-based Little Caesars is the nation’s third largest pizza chain with over 35 locations in New York City. It joins Applebee’s, Dunkin Donuts, Subway, Rita’s Italian Ice, It’Sugar and Rainbow Shops in making Surf and Stillwell a new mecca for chains and franchises.

What’s up with the vacant “ARCADE” next door? According to the Coney Island Rumor Mill, an arcade operator has agreed to fill the building’s two dummy arcades with games but paperwork issues are delaying the deal. No surprise there. Making a mockery of the zoning laws, the designated “arcades” have remained vacant ever since the building’s first tenant, Miami candy chain It’Sugar, opened last year. The 2009 Coney Island Rezoning requires the building to have a percentage of amusements equal to the square footage allocated for the arcades. If something other than amusements went into the space, the building’s C of O would be in jeopardy.

Why doesn’t Thor CEO Joe Sitt just throw some arcade machines in the “arcades” and open them up to the public instead of taking advantage of what appears to be a loophole in the zoning law that allows the spaces to remain vacant? Based on Sitt’s eviction of amusements from his property (“Thor’s Coney Island: What Stillwell Looked Like Before Joe Sitt,” ATZ, March 3, 2010), it’s our opinion that he’s not in any hurry to replace them.

The zoning states that “At least 15 percent of the Stillwell Avenue and West 10th Street street frontage of any zoning lot shall be occupied by Use Group A1 uses at the ground floor level.” Use Group “A1″ includes amusement arcades as well as open booths with games of skill or chance, such as water racing and shooting galleries, which used to occupy the spot in the demolished Henderson Building where the Brooklyn Nets Shop is now.

Related posts on ATZ…

March 11, 2014: Thor’s Coney Island: BurgerFi, Arcade Coming to Stillwell & Surf

October 17, 2013: The New Coney Island: Thor Equities Vacant Lots, Dummy Arcades

September 2, 2013: The New Coney Island: A Tale of Two Jones Walks

December 19, 2012: Will Coney Island’s Surf Ave Become a Mecca for Franchises?

Read Full Post »

Frozen custard

Frozen custard from Rita’s Italian Ice. Photo via Facebook.com/RitasItalianIceCompany

The year is only three days old and already another new franchise is set to come to Coney Island in 2014. Rita’s Italian Ice, a company whose tag line is “Ice, Custard and Happiness” will open a store on Surf Avenue in Coney Island. Broker Joe Vitacco tells ATZ he signed a lease with a Rita’s franchise owner for the 1,500 square foot space at 1329 Surf Avenue, on the corner of Surf and West 15th Street. The store is located across the street from Nathan’s and Williams Candy and is expected to be open seasonally, probably from March through October. The current tenant, a social club, will move next door.

Rita’s menu offers Italian ice, frozen custard, layered gelati, sundaes with a choice of 20 toppings, sugar-free treats, and trademark items that blend Italian ice with frozen custard.

Frozen custard is of course one of the lost delights of Coney Island. The dessert made its debut in 1919 when the Kohr brothers opened a stand on the Coney Island Boardwalk. The nickel treat was a sensation, selling 18,460 cones on the first weekend!

sundae with toppings

Frozen custard sundae with toppings from Rita’s Italian Ice. Photo via Facebook.com/RitasItalianIceCompany

Kohr’s Frozen Custard is still in business on the Boardwalks at Seaside Heights and Casino Pier on the Jersey Shore but Kohr’s has shown no interest in making a Coney Island comeback. Businesses in Coney Island which sell ice cream, gelato and soft serve haven’t made any move to bring back frozen custard either, despite the recommendations of old-timers. It’s ironic that thanks to a popular international chain headquartered in Trevose, Pennyslvania, we can look forward to the return of this treat to its place of origin and the celebration of National Frozen Custard Day on August 8th.

Rita’s has over 600 outlets in 21 states and is the latest of a growing number of national and international franchises and chains leasing space on high-priced Surf Avenue in the new Coney Island.

Back in 2012, ATZ asked “Will Coney Island’s Surf Ave Become a Mecca for Franchises?” (December 19, 2012). Clearly, the answer is yes. Like attracts like. In 2014, Johnny Rockets, Red Mango and Subway Cafe, which are currently under construction, will join It’Sugar, Applebee’s, Popeye’s, Dunkin’ Donuts/Baskin Robbins and Subway on the main drag of Coney’s amusement district. Also on Surf and in a category unto themselves are Nathan’s original 1916 store, which is a year-round magnet for tourists, and Brooklyn-grown Grimaldi’s Pizzeria.

According to the franchise’s website, Rita’s is the world’s largest Italian ice concept and opened its first international outlet in October in Shenzhen, China. The franchisor for Southern China plans to open 31 outlets over 10 years.

Rita's Italian Ice

Rita’s Italian Ice, Yonkers, NY Store. Via Facebook.com/RitasItalianIceCompany

In the New York metro area, Rita’s year-round locations are on Broadway at 92nd Street in Manhattan –the only store in New York City–and several locations in New Jersey, including Hoboken, and the Izod Center and MetLife Stadium in East Rutherford, NJ. The majority of stores in New York and neighboring states such as New Jersey, Connecticut and Pennyslvania are open seasonally from March through October. Investment firm Falconhead Capital LLC owns a controlling interest in Rita’s, which was founded in 1984 as a Mom-and-Pop product sold from a porch window in Philadelphia.

Share

Related posts on ATZ…

December 31, 2013: Amusing the Zillion’s Coney Island 2013 Year in Review

September 11, 2013: Subway Cafe to Replace Furniture Store on Coney Island’s Surf Ave

February 13, 2013: Thor’s Coney Island: Candy Retailer It’Sugar to Open Surf Ave Store

January 28, 2012: Lost Delights of Coney Island: Frozen Custard

Read Full Post »

north side of Surf Avenue, Coney Island

1,700 sq foot Subway Cafe with Tuscany-style interior coming to this building at 1019 Surf Avenue. Photo © Tricia Vita

Last year ATZ asked “Will Coney Island’s Surf Ave Become a Mecca for Franchises?” (December 19, 2012). The latest in a slew of chains and franchisees betting on the new, year-round Coney Island is a Subway Cafe with a “Tuscany-style interior” featuring sofas and a fireplace. Broker Joe Vitacco signed a lease yesterday with the restaurant chain for the 1,700 square foot cafe at 1219 Surf Avenue across the street from Luna Park.

Just how pricey is Coney Island’s Surf Avenue? The building at 1019-1039 Surf was purchased for $3.1 million by 1019 Surf Ave Acquisition LLC in March for $3.1 million, according to Property Shark. Vitacco says the buyer was Russian multi-millionaire Yakov Yakubov, who also owns Loehmann’s Plaza in Brooklyn.

First introduced as a restaurant concept in 2008, the Subway Cafe’s decor and layout aim for a “coffeehouse ambiance” and is a little larger than an average Subway. The north side of Surf Avenue already has a Subway, located down the street in Stillwell Terminal, but it does not sell coffee. In addition to Subway sandwiches, the new cafe’s expanded menu includes baked goods, dessert items and coffee offerings. Part sandwich shop, part coffee bar, the Subway Cafe will be operated by franchisees with its lease held by the Subway Restaurant chain. They will take possession of a portion of the storefront occupied by the 11,000 square foot Lago Furniture. The furniture shop is on a month-to-month lease while tenants are sought for the rest of the space, Vitacco said.

Subway Cafe

Interior of one of the Subway Restaurant Chain’s Subway Cafes. The concept debuted in 2011

The furniture shops on the north side of Surf have long been in violation of the C-7 amusement zoning and are gradually being replaced by restaurants and bars. Dunkin’ Donuts (also in Stillwell Terminal), Coney Island Bar & Grill (formerly Bratva), Grimaldi’s Pizzeria, and Applebee’s will be joined next year on the north side of Surf by Johnny Rockets and Red Mango and Subway Cafe. As we noted last year, rides and amusement businesses aren’t about to make a comeback due to the skyrocketing rents since the rezoning. “I’m getting more inquiries than ever before,” said Vitacco, who would like to bring a seafood and steak restaurant to the neighborhood. “It means that people are thinking about it. But I call half the people I talk to tourists.”

Until the early 1980′s the north side of Surf Avenue was home to individually-owned penny arcades and a variety of rides including bumper cars, carousels and even a Jumbo Jet-style coaster. Philips Candy Store, now located in Staten Island, was the anchor of Stillwell Terminal from 1930 until 2000 when the terminal was rebuilt and they had to move out. By the time the last ride– Coney Island’s B & B Carousell —closed in 2005, the north side was known as the wrong side of Surf Avenue to locate a business because of the lack of foot traffic.

UPDATE January 29, 2015:

After post-Sandy construction delays, Subway Cafe finally has their sign up and is set to open a year-and-a-half after signing a lease

Sky Rapids Ride

Sky Rapids Ride at 1223 Surf Avenue and Arcade at 1217 Surf Ave. Coney Island. January 1, 1979. Photo by Abe Feinstein via Coney Island History Project

Share

Related posts on ATZ…

May 13, 2013: Grimaldi’s Rings in Coney Island Comeback with Dreamland Bell

February 13, 2013: Thor’s Coney Island: Candy Retailer It’Sugar to Open Surf Ave Store

December 19, 2012: Will Coney Island’s Surf Ave Become a Mecca for Franchises?

October 3, 2012: Photo of the Day: The Weekday View from Ruby’s Bar

Read Full Post »

Older Posts »

Follow

Get every new post delivered to your Inbox.

Join 341 other followers

%d bloggers like this: