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Posts Tagged ‘Joe Vitacco’

franchise restaurant row

Franchise Restaurant Row in progress on Coney Island’s Surf Avenue: Checkers, Pizza Hut, Red Mango, Johnny Rockets, Applebee’s, IHOP , and more to come. Photo © Tricia Vita

The year is young but ATZ already has exclusive news of the first lease of 2016 on Coney Island’s franchise restaurant row, the north side of Surf Avenue. Broker Joe Vitacco says, “On Friday we signed a lease, for the 1,900 square foot space at 1223 Surf Avenue, with franchisee Nafees Bukhara. Nafees owns the Popeye’s on Surf Avenue and will be opening a Pizza Hut Express.”

Bukhara will also open a Red Mango franchise, for which he bought the rights from Rahman Hashimi, the Johnny Rockets franchisee, as well as a pretzel franchise. The Pizza Hut Express will be on the ground floor to the right of the 6,000 square foot Johnny Rockets, in a building that has been under stop-and-go construction since a lease deal was signed three years ago.

“You ask why we don’t do Mom and Pops,” Vitacco said last year, in an ongoing conversation that began with ATZ’s 2012 post “Will Coney Island’s Surf Ave Become a Mecca for Franchises?” He says that Mom and Pops wouldn’t be able to afford this, referring to the extraordinary delays and ballooning costs due to city and MTA red tape.

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 vacant lots or 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. Now it is a mix of franchises and a few Mom & Pops like the Red Doors Bar & Grill and Luna Park Cafe.

Under construction

Construction in progress on Surf Avenue building for Johnny Rockets and Pizza Hut Express. Photo © Tricia Vita

Related posts on ATZ…

October 2, 2015: Coney Eats: Magic Gyro & Checkers to Open, Kosher Pizza Signs Lease, Johnny Rockets & IHOP Underway

May 14, 2015: Coney Island 2015: Red Doors Bar & Grill Opens on North Side of Surf Ave

February 13, 2015: Coney Island 2015: IHOP Franchisee Signs Lease for 5,400-Square-Foot Surf Ave Store

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

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Franchise Restaurant Row

Franchise Restaurant Row in progress on Coney Island’s Surf Avenue: Checkers, Johnny Rockets, Applebee’s, Grimaldi’s, and more to come. Photo © Tricia Vita

In Coney Island’s Stillwell Terminal, Magic Gyro, a Mom and Pop destroyed nearly three years ago by Hurricane Sandy, is about to reopen, and a Checkers hamburger franchise is set to debut. Magic Gyro owner Levent Demirgil told ATZ that he will be training employees this weekend and plans a soft opening next week.

“We suffered a lot from Sandy,” Demergil said in an oral history interview recorded in Turkish for the Coney Island History Project’s immigrant narratives series. “We didn’t have insurance. I took personal loans. By taking those we are trying to stay afloat, that’s why we could not open here for three years.” Formerly a gourmet shop with a corner kitchen, the new store will be a Mediterranean Grill featuring healthy fast food such as hummus, salads, and döner kebabs.

Magic Gyro Coney Island

Levent Demirgil in his soon-to-open Magic Gyro in Stillwell Terminal. Photo © Coney Island History Project

Meanwhile, construction has resumed on the north side of Surf’s Franchise Restaurant Row. Next door to Checkers, the Johnny Rockets “Coming Soon” banner is tattered, but the long stalled construction on the burger franchise, whose themed decor is based on retro diners, is once again underway. “They are laying the plumbing under the concrete floor and pouring the concrete next week,” says broker Joe Vitacco, who gave us an update on a lease deal that he closed nearly three years ago in December 2012.

“You ask why we don’t do Mom and Pops,” Vitacco added, referring to our ongoing conversation that began with ATZ’s 2012 post “Will Coney Island’s Surf Ave Become a Mecca for Franchises?” He says that Mom and Pops wouldn’t be able to afford this, referring to the extraordinary delays and ballooning costs due to city and MTA red tape.

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On Surf Avenue across from Luna Park, construction on a 5,400 square-foot IHOP has finally begun eight months after construction was expected to begin. The franchisee is Bryan McKenzie, who is also the owner of an IHOP in New Jersey. The delay was due to bureaucratic snafus at the City’s Department of Buildings. At the beginning of this year, ATZ reported the construction had been delayed by new and ever-changing post-Sandy building regulations. Johnny Rockets was waiting for approval of a storm surge resistant front. Construction had been stalled for so long that skeptical members of the Coney Island Rumor Mill doubted it would ever resume.

Vitacco says that at this point in time he believes IHOP will be open in March 2016, in time for the 2016 season. “This is a testimony to the undying commitment of Bryan McKenzie, the IHOP franchisee, who would not give up when faced by problems with approval by the building department that took 18 months to resolve.”

The one-story building at 1019 Surf is a longtime furniture store, which is not among the use groups permitted by the city’s zoning. The space is being subdivided into six storefronts by the landlord and the stores are getting new street numbers. IHOP will combine the three stores on the far left and the Subway Cafe has the one on the right. The two remaining storefronts totaling 3,000 square feet were in fact snapped up yesterday by a Mom and Pop for a kosher pizzeria and ice cream shop, which will also have a party room for kids’ birthday parties.

Related posts on ATZ…

May 29, 2015: Coney Island Openings & Closings: Power Surge, Arcade, Rainbow Shops, Vintage Shooting Gallery

May 14, 2015: Coney Island 2015: Red Doors Bar & Grill Opens on North Side of Surf Ave.

March 11, 2015: In Coney Island, Two Stores and One NYC Landmark Mark 95th Year

February 13, 2015: Coney Island 2015: IHOP Franchisee Signs Lease for 5,400-Square-Foot Surf Ave Store

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1315 Surf Avenue

Vacant since Sandy, 1315 Surf Avenue will be the site of an Italian fast food restaurant. The Shore Theater building next door, owned by the Bullard family, has been vacant for 40 years. May 13, 2015. Photo © Tricia Vita

What’s new on the north side of Surf, the mecca for franchises in Coney Island? At 1315, where Cha Cha’s relocated from the Boardwalk until calling it quits after being devastated by Sandy, a permit has been taken out for interior renovations. A new eatery is going there and thankfully it won’t be another franchise or chain.

The Russo Brothers, owners of Gargiulo’s, which is Coney Island’s bastion of fine dining, are planning to open a fast food Italian restaurant, according to Anthony Russo. Pizza, veal parm and fried calamari will be among the offerings Russo told ATZ. No opening date has been set, but construction is expected to get underway as soon as permits have been approved.

Gargiulo's Way

Gargiulo’s Way, West 15th St between Surf and Mermaid Avenues, Coney Island. November 16, 2014. Photo © Tricia Vita

The Russo brothers own the building as well as the adjacent one where tenants include Piece of Velvet Bakery and Rita’s Italian Ice on the corner of 15th Street. In 2007, West 15th Street between Surf and Mermaid Avenues was designated Gargiulo’s Way to mark the 100th anniversary of Gargiulo’s Restaurant. Founded by Gus Gargiulo and owned by the Russo family since 1965, the Coney Island landmark at 2911 West 15th offers classic Neapolitan cuisine.

According to broker Joe Vitacco, who leased the storefronts to Rita’s and Piece of Velvet, there are very few remaining vacant spaces for lease on the north side of Surf. At 1223 Surf Avenue, he has 2,100 square feet on the first floor and 5,000 square feet plus 1,900 square foot terrace on the second floor and 4,000 square feet rooftop dinning for $45-$50 per square foot.

The first floor of that address next to Stillwell Terminal was also leased to a Johnny Rockets (6000 sf) and Red Mango (2.000 sf) franchisee in 2012, but construction has been delayed by new and ever-changing post-Sandy building regulations. Among the stores Vitacco is offering are 1,450 square feet at 1019 Surf Avenue next to the new Subway Cafe and across the street from Luna Park.

Related posts on ATZ…

May 14, 2015: Coney Island 2015: Red Doors Bar & Grill Opens on North Side of Surf Ave

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

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

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

 

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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…

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?

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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 1019 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

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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?

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