After 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.
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 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…
October 2, 2015: Coney Eats: Magic Gyro & Checkers to Open, Kosher Pizza Signs Lease, Johnny Rockets & IHOP Underway
January 29, 2015: Coney Island 2015: Subway Cafe, Sushi Lounge, IHOP, Checkers, Johnny Rockets
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?
Amusing the Zillion 
If people could see an artist’s rendering of what the “new and improved” Coney Island will actually look like, would they still be able to recognize it?
I was born in Coney Island and since moving far away (not exactly a voluntary decision), I am somewhere way beyond words of sadness over what I see happening to my hometown.
With each visit back — and with your blog in between — I am mortified at what is being done to a New York living landmark.
So hard to imagine that righteous indignation isn’t far and wide. Has the general public become that apathetic?
Sad beyond words.
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Beautiful….Thanks for posting this! Times Square By the Sea!
muscle13 is probably sarcastic. I much rather ihop and chains than furntiture stores and empty lots. You must live nowhere near here. locals are happy about the changes.
Some of my Coney friends are fans of Applebee’s and will probably like IHOP. I prefer Tom’s or Ruby’s, Mom & Pops on the Boardwalk. Others voice dislike of almost every chain but say they’re excited for Johnny Rockets or Wahlburgers. To each his own BUT does anyone really want to see chains and franchises occupy the majority of stores on Surf?
It’s the concentration of chains on Surf Ave, rather than any individual business, that is not what I hoped for the new Coney Island’s redeveloped main drag.
And why aren’t we seeing more of a diversity of businesses instead of all restaurants?
At the same time, and as ATZ has written previously, the prevailing view among business owners and operators in the amusement area is positive and any new business will bring more people here.
Very easy answer – the zoning in Coney East allows for restaurants of ANY SIZE. That includes the north side of Surf accross from Luna Park. Across from the stadium on North Surf larger retail and residential are allowed. Taconic put that up for sale last I heard. Don’t know who will develop, but I am sure it will be worth alot. Hopefully Schron’s huge development in Trump Village Shopping Center will spur interest in the area on Surf as well.
Love the influx of chains and have high hopes for a Times Square redux in Coney. Get more chains in…….
“Love the influx of chains and have high hopes for a Times Square redux in Coney. Get more chains in…….”
I couldn’t disagree with your more completely but you already know that. At this rate, Surf Avenue will soon look like a strip mall in Anytown USA.
The broker responded to my question about why not more diversity in businesses, so I added it to the end of the post, along with the zoning text. He says, “Because food pays the highest per sq. ft. Remember on Surf Avenue we are limited by the Coney Island C7 special zoning.” Yes, the fact that the zoning allows restaurants of any size but not stores of any size favors restaurants over retail or entertainment retail. There have been some interesting entertainment businesses that made inquiries but nothing came of it. Too expensive.
As I wrote in “Will Coney Island’s Surf Ave Become a Mecca for Franchises?” in 2012, and it’s still valid:
During the hearings leading up to the July 2009 rezoning, a number of individuals and organizations including the Pratt Center for Community Development recommended adopting a formula business restriction policy within Coney East to prevent national retailers and fast food restaurants from locating there. Of course that didn’t happen because the zoning was written to attract these very businesses to Coney Island.
And I couldn’t disagree with you more and you already know that. And that is Brooklyn. A diversity of ideas. We all don’t follow internet group think.
The one concept that has finally come to fruition in South Brooklyn is the hipsters and yuppies have gotten priced out of North Brooklyn and are heading this way. Coney will be ready for them. The chains, per your post, and Big Developers are waking up – Schron, Thor (remember he did BJ’s store in Bath Beach) Muss, Avalon Bay, Rybak, iStar are all active now in South Brooklyn. The amphitheater will help attract the hipsters as well.
I have lived in South Brooklyn my whole life Tricia. We are due. We will get our respect. It won’t come from internet protesters, but we will get our respect. That’s Brooklyn. We will compete against Manhattan. Guaranteed.
I worked on the Boardwalk in Brighton decades ago. We sold knishes, which we baked ourselves. But we also sold hot dogs and hamburgers. My boss was in his 70’s at the time. His father started the business in Coney Island decades earlier
The same vendor who sold us the hot dogs wanted to sell us our hamburger patties too. My boss preferred getting our meat from a local butcher on the avenue. Instead of getting deliveries via a truck, we got our hamburger meat via shopping cart.
I once asked my boss why? He explained that he preferred to keep local businesses in business. Those businesses pays locals to work for him. Local businesses and their workers pay local taxes which pays for local vital city services.
It didn’t make sense for him to buy frozen meat prepared out of state, where his customers money went to keep workers in other states employed. Employee taxes paying for other city services, not ours.
You take a chain store that sells hamburgers, they are not allowed to buy food stuffs locally, they are required to buy their food from one source, their franchise.
Money being spent here in Coney Island goes out of state, and even out of the country now. Money spent here in Coney Island should stay in New York City.
I bet the same people who love the chain stores, hate it when they hear their own personal taxes go up because of the money drain from our local economy.
Just some food for thought, pun intended ;)
Point taken but I have to disagree with the money going out of state.These franchises pay 25% for product, kick over 10% royalties and advertising to the parent company…you’re right about that. But an IHOP can bring anywhere from 700K to 1 mil in salaries to Surf Avenue, that’s has got to be better than having these run down furniture stores operated by 2 salesmen. Just a thought.
Do not misunderstand what I am saying. I am not saying I rather have the furniture stores that are breaking zoning. I am saying if there was a choice between a Pete’s Pancake House or International House of Pancakes (IHOP), for the local community, Petes would be better then ihop.
Going back to the meetings that let up to the rezoning back in 2009, they wanted items that draws people from Manhattan to come to Coney Island too. They wanted store fronts unique to Coney Island like Nathans, Garguilos, or Totinos. Ihop, Applebees, other chain stores do not fit what the city committee had in mind when they devised the rezoning.
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Retail isn’t coming for the same reason they’re trying to get out of Kings Plaza. Shoplifting.
Things. We’re surposed to
Open in Coney Island never opened or has not happen. I hop was supposed to open August 2015 never opened at all. The amphitheater was supposed to be open in sub of 2015 I have not even worked out yet . Checkers restaurant has the sign up for mouths . They never opened at all . Coney Island what’s going on .
I understand Checkers has opened at the Surf Ave entrance of the train station. I have not personally seen it, but people have spoken about it.