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Will Coney Island’s Surf Ave Become a Mecca for Franchises?

Posted in Real Estate, Redevelopment, tagged Applebee's, Coney Island, franchise, Johnny Rockets, restaurant, Surf Avenue on December 19, 2012| 14 Comments »

Surf Avenue Panoramic, North side of Surf, Mermaid Parade 2008. Photo © Whiskeygonebad/Anthony Catalano via flickr

Coney Island, the birthplace of the hot dog and the enclosed amusement park is famous for its quirky authenticity, but it’s about to look and taste more like Anyplace USA. Three national franchises– Applebee’s, Johnny Rockets and Red Mango–have signed leases for the north side of Surf Avenue.

Broker Joe Vitacco tells ATZ, “We rented 8,000 square feet to the Johnny Rockets franchisee. He will use 6,000 square feet for the Johnny Rockets and the remaining 2,000 square feet for another national franchise, Red Mango.” The building next door, 1217, will be built out to the lot-line on Surf for Applebee’s, he said. The restaurants will activate long vacant properties next to Stillwell Terminal, which already has a Dunkin Donuts/Baskin Robbins and a Subway and is getting a Checkers hamburger chain. Is the north side of Surf Avenue destined to become a mecca for franchises?

Lot at 1223 Surf Avenue next to Stillwell Terminal and 1217 Surf Avenue. Photo © Bruce Handy/Pablo 57 via flickr

Red Mango is a frozen yogurt franchise started “many, many spoons ago” (in 2007) in Los Angeles that now has 190 locations nationwide. According to a company press release, it is one of the fastest growing retailers of all-natural nonfat frozen yogurt and fresh fruit smoothies. Johnny Rockets touts itself as “The Original Hamburger” though it was founded in 1986, also in L.A. According to their corporate website the chain has “about 300 corporate and franchise-owned restaurants in 30 states and 16 countries, including 30 Six Flags amusement park locations and 11 Royal Caribbean cruise ships.” In the New York area, the store can be found at 56th Street, South Street Seaport and Yankee Stadium and in Glendale and Forest Hills in Queens, as well as in New Jersey at Newport Centre Mall and in Hoboken. Applebee’s has almost 2,000 locations nationwide and the franchisee already owns 40 restaurants in the New York area.

For the record, the franchisees’ leases are with the individual property owners of 1217 and 1223 Surf Avenue and NOT with Thor Equities. Thor CEO Joe Sitt does not own any property on the north side of Surf east of Stillwell Avenue. Thor’s holdings are on the south side of Surf. The news about Johnny Rockets and Applebee’s has long been rumored because franchisees had first looked into renting Thor Equities vacant new building at Surf and Stillwell, where prices are said to be sky high. Rents on the north side of Surf are about a third as much as Thor’s properties on the south side, a source tells ATZ, with a space on the north side renting for $75,000 and a comparable one in Thor’s building with an asking price of $250,000.

Across the street is Nathan’s, which got its start in Coney Island in 1916 and whose original location is a year-round tourist destination. “In total, Nathan’s products are marketed for sale in over 40,000 locations,” according to the company’s website. Also on the south side of Surf Avenue is Popeye’s Chicken, which is popular with locals and whose franchisee owner has been in business year-round in Coney Island for nearly thirty years.

Coney Island Post-Sandy: The original Nathan’s at Surf and Stillwell is Closed Till Spring. Photo © Tricia Vita via flickr

Vitacco has been actively marketing properties in Coney Island to potential franchisees and independent restaurateurs alike, as well as to other businesses, for many years. It has been a tough sell, with 14 months of red tape at 1223 Surf, which is owned by Fox 18 Realty, LLC, due to the property being adjacent to the MTA. Hooters, Outback Steak House and a seafood restaurant are on his get list. “What would you like to see?” he asked when we said we weren’t a fan of franchises.

How about a club with a wave-riding machine? Turns out Body Glove Swimwear had come to him with an idea for a cafe, retail and surf machine, but nothing ever came of it. In addition to an all-season surfing venue, ATZ’s Big Wish List for the New Coney Island includes a pinball arcade museum, Fascination, frozen custard and a Mangels Whip ride. “The reason it is better to have franchisees is the franchise company has to approve the area, location and lease,” says Vitacco, who believes that Coney Island is a fantastic location. “They have done all of their homework and are experts at analyzing a location.”

While some of our Coney Island friends approve of any new business coming to vacant land and the jobs that it will create, others are critical: “At least Johnny Rockets sort of fits the vibe. But who needs a fake diner when there’s a real one?! (Tom’s),” says Coney Island regular and writer Tara Cox. “In my personal vision for Coney, they should give small, unique business owners the chance to thrive and keep the spirit alive. The whole area will benefit. And what a novelty it would be — a land where there’s only small, interesting and personal businesses.”

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

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. It was mostly furniture stores named after amusement parks. Rides aren’t about to make a comeback due to the high rent, but things began looking up last summer with the opening of the popular Grimaldi’s Pizzeria on the north side of Surf.

Some kind of formula business restriction such as the one in San Francisco, which bans chains in some neighborhoods and regulates them almost everywhere else, would create opportunities for small, independent businesses and prevent Surf Avenue from becoming a strip of franchises. 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.

Photo Album: First Brunch at Tom’s Coney Island by Bruce Handy

Posted in Food, Photo Album, Photography, tagged Boardwalk, Bruce Handy, Coney Island, restaurant, Soft opening, Tom's Restaurant on September 23, 2012| 7 Comments »

First Brunch at Tom’s Coney Island. September 23, 2012. Photo © Bruce Handy via Coney Island Photo Diary

Coney Island resident and photographer Bruce Handy was one of the first customers at Tom’s Coney Island’s soft opening at 9am this morning. “I had two eggs over easy, home fries, whole wheat toast and coffee, all good,” said Bruce, who posted these photos of Tom’s first Sunday brunch on his Coney Island Photo Diary.

Are they serving pancakes yet? “Not sure, guy next to me had waffles,” he said. On Friday, Tom’s manager told ATZ the full menu will be identical to that of Tom’s Prospect Heights location with the addition of seafood entrees, but their famous pancakes and some other items may not be available just yet. We’ll let you know later. ATZ’s afternoon plans include popping into Tom’s before heading over to a screening of four of these five Coney-themed films at the Coney Island Film Festival.

Update… Yes, Tom’s Coney Island has pancakes! We tried the Danish pancakes made with ricotta cheese and served with a choice of flavored butter. Delicious! Breakfast is served all day. Our friend had the turkey club sandwich which is his favorite at Tom’s in Prospect Heights. Vegetarians will be happy to know there’s a vegie burger on the menu and it is cooked on a grill separate from the one used for meat. Owner Jimmy Kokotas says weekday hours are 8am till 5pm. On weekends, he hopes to stay open till 7pm. In addition, Tom’s has a liquor license and is serving beer. Other alcoholic drinks will be available after they get a delivery, probably the end of the week or next week. At that time, beer and alcohol will be on a separate menu.

Tom’s Coney Island is located on the Boardwalk at the corner of Stillwell Avenue. Though the restaurant is opening near the end of the amusement park season due to months of construction, it is expected to initially remain open at least nine months of the year. We predict it will become a neighborhood favorite. Join us in welcoming Tom’s to Coney Island by dropping by for breakfast or lunch!

Tom’s Coney Island, 1229 Boardwalk (at Stillwell Avenue), Brooklyn, NY 11224. Phone 718-942-4200

50 Years on Coney Island Boardwalk for Paul & His Daughter

Posted in Food & Drink, Redevelopment, tagged Boardwalk, Coney Island, Gregory & Paul's, Mom and Pop, Paul Georgoulakos, Paul's Daughter, restaurant, Tina Georgoulakos on July 17, 2012| 6 Comments »

Hey! Get It, Get It! at Paul’s Daughter, Coney Island Boardwalk. July 7, 2012. Photo © Tricia Vita/me-myself-i via flickr

“Hey! Get it Get it!” is back at Paul’s Daughter in Coney Island. Snappy new signage with the familiar lettering and motto is hawking their delicious clams and calamari. What’s more, the Georgoulakos family’s recently renovated eatery on the Boardwalk — established as Gregory and Paul’s in 1962 — celebrates its 50th anniversary this year.

“We have been so busy playing catch up that we haven’t celebrated,” Tina Georgoulakos told ATZ, adding that right now they are concentrating on getting the Paul’s Daughter sign installed on the upper part of the facade. “It’s a funny coincidence that I have been Paul’s daughter for fifty years and he opened his first store on the Boardwalk and West 8th fifty years ago. Hopefully in August when things slow down a little, we will celebrate.” ATZ recommends that you go directly to Paul’s Daughter for a plate of clams and a beer and be among the first to wish them a Happy Anniversary!

Paul Georgoulakos, 83, the Boardwalk’s Oldest Operator. June 28, 2012. Photo © Tricia Vita/me-myself-i via flickr

The timeline on Paul’s Daughter’s Facebook Page begins six decades ago in 1951, when 21-year-old Paul Georgoulakos started his first Coney Island business—a milk stand at Stillwell Terminal—with a $500 loan from his aunt. A store on West 12th Street and the Bowery soon followed. Gregory & Paul’s got started in 1962, when Paul partnered with Gregory Bitetzakis and took over the old Howard Johnson’s on West 8th Street and the Boardwalk. The partners survived their first eviction in 1968: “Rockefeller buys the property their store is on and donates it to the Aquarium, putting them (and seven other stores) out of business,” notes the timeline.

Clams on the Half-shell at Paul’s Daughter, Coney Island Boardwalk. July 7, 2012. Photo © Tricia Vita/me-myself-i via flickr

The current location on the Boardwalk at West 10th Street opened in 1970 and was leased from Astroland Park. The famed Astroland Rocket was perched on the roof of the store until the park closed in 2008. When Gregory, who operated the G & P’s on West 10th Street opposite the Cyclone retired in 2009, Paul’s Boardwalk store remained open, leasing from new landlord Thor Equities and changing its name to Paul’s Daughter.

Last year, it looked like the veteran Mom-and-Pop would close forever just short of its 50th anniversary when Paul’s was evicted along with seven others. Zamperla, which opened Luna Park, had assumed management of the Boardwalk property now owned by the City and planned a glitzy redo by French food giant Sodexo and a Miami Beach restaurateur. In a surprising about-face, the amusement operator later offered eight-year leases to two of the businesses–Paul’s Daughter and Ruby’s Bar– with the stipulation that they invest hundreds of thousands of dollars in gut rehabs of their stores.

How does the new Paul’s Daughter look? As we wrote in May, our first impression was that both Paul’s and Ruby’s stores looked refreshed and ready to compete for customers in the new Coney Island while paying tribute to the spirit of the past and continuing to embody the personalities of their owners. Check out our flickr slide show of the New Paul’s Daughter, but keep in mind the photos document a work-in-progress and some of the changes that you will notice this summer were required by the landlord or city regulations.

When Paul’s Daughter officially reopened on the weekend before Memorial Day 2012, we were happy to see the beloved signs for “Mr. Shrimp” and “Chiefito and Chiefita — the Nice N Sweet/Fluffy Cotton Candy Kids” and “Clams” returned to the new facade. The A & W Mama and Papa Burger remain on the roof and the vintage signs were restored and brought back to the lower facade. Additional signage was needed due to building renovations and adjustments to the menu.

The building’s square corners were rounded to resemble the way it looked when it was built shortly after the Boardwalk was moved in 1939. A photo on the Coney Island History Project website shows “the new fireproof, streamlined, Art Moderne-style building that replaced the ornate wooden Feltman’s Boardwalk restaurant.”

The new signage was painted by Brooklyn artist and School of Visual Arts instructor Stephen Gaffney, whose work as a muralist is on view in City parks and schools. Having previously restored G & P’s hand-painted signs when the restaurant’s name was changed to Paul’s Daughter, Gaffney was able to recapture the spirit of the old signs in his new work.

Papa Burger and New Signs at Paul’s Daughter, Coney Island Boardwalk. July 7, 2012. Photo © Tricia Vita/me-myself-i via flickr

Half of the storefront is now a stand-up bar made with wood salvaged from the roof joists of the former Club Atlantis/Cha Cha’s, which is undergoing a gut rehab by Tom’s Restaurant of Prospect Heights. Photos of Paul and his family and the stores that he operated over the past sixty years fill the wall behind the open-air bar and the interior of the pillars. In the photo below, the large poster shows Paul in 1954, leaning on the glass case at his store on West 12th Street and the Bowery, where Chinese egg rolls and hot knishes were a popular item. Soda was ten cents!