Brigitte's Restaurant reported terminal

[Max Hauser]

Brigitte's (Santa Clara) announced this week a familiar problem for small
businesses: Lease not renewed.

This is one of two very genuine, independent, small, French-run,
moderate-priced French brasseries I know of in Santa Clara County (the other
is Le Petit Bistro on ECR in Mountain View which is going strong under its
2nd-generation Norman chef, more later on that place I hope).

Excerpt from Brigitte's announcement:

--
We will be open for dinner service from Tuesday-Saturday for the next two
weeks:

Tuesday-Saturday, September 12-16
Tuesday-Saturday, September 19-23

We do not currently have plans to be open past September 23, but will be
holding a close out sale on September 30-October 1.

We sincerely thank the customers and employees who supported us over the
past four years, and invite you to visit as we bid farewell to our
delightful neighborhood bistro.

We are exploring opportunities that will take our gourmet and healthy
concept to a new level, and look forward to sharing our ideas with you soon.


Brigitte's Restaurant
French Mediterranean Gourmet & Healthy Cuisine
351 Saratoga Ave, Santa Clara. Tel: [phone]
Open Tuesday - Saturday
Dinner 5:30pm
www.BrigittesCuisine.com

[axlq]

Post by Max Hauser
Brigitte's (Santa Clara) announced this week a familiar problem for small
businesses: Lease not renewed.

Noooooo!

WHY does this seem to happen to my favorite places?

I must make one last visit. I am truly sorry to see it go.
Brigitte's was a real gem, an affordable French restaurant.

-A

[bizbee]

On Thu, 14 Sep 2006 12:42:34 -0700 in

Post by Max Hauser
Brigitte's (Santa Clara) announced this week a familiar problem for small
businesses: Lease not renewed.
This is one of two very genuine, independent, small, French-run,
moderate-priced French brasseries I know of in Santa Clara County (the other
is Le Petit Bistro on ECR in Mountain View which is going strong under its
2nd-generation Norman chef, more later on that place I hope).

It sucks, but who the hell signs a four year lease?

[Max Hauser]

[I wrote:]
It sucks, but who the hell signs a four year lease?

Hi bizbee, I don't quite understand the question. Brigitte's announcement
thanked supporters for past four years of business, didn't mention lease
term. (The business also sold some packged products and I don't know how
long it has done what there). Commercial leases can be various lengths I
hear, but it's not my line.

FYI , a past thread touched on local phenom of five-year small-business
leases contracted during peak dot-com space crunch [public data reprised
below], where owners later tried to ask same peak rents on renew, though
vacancies had increased vastly and market value of the spaces decreased.
(This seems to happen with rental property in general, including
residential, under relatively amateurish owners, not pricing to meet the
market. I'm assured by experts that it's an example of a broader human
emotionalism on prices, evident in stock trading and elsewhere.) (It also
demonstrates public markets finding a "natural" or "real" price regardless
of notions people cultivate -- in this case sellers.)

No idea what's behind the Brigitte's situation though; owner may have had
other plans for the space. As happened recently to the former Palo Alto
Coffee Roasting Company, an 18-year anchor of the specialty ingredients
corner of the Stanford Shopping Center.

--
Sent: Thursday, August 31, 2000

Subject: US office-space vacancy rates

Los Angeles: 17.1%
Dallas: 12.6%
Miami: 12.5%
Washington DC: 9.9%
Chicago: 7.7%
New York: 1.9%
Boston: 1.7%
San Jose: 0.94%
San Francisco: 0.78%
Palo Alto: 0.19%
Sunnyvale: 0.14%

[Michael Sierchio]

Post by Max Hauser
Subject: US office-space vacancy rates

No correlation with retail space vacancy rates.

[Max Hauser]

Post by Michael Sierchio

Post by Max Hauser
Subject: US office-space vacancy rates

No correlation with retail space vacancy rates.

Good info, thanks.

On the other hand and closer to my posting, local _rental rates_ for retail,
office, and residential space, in various cases I know of, all went through
up-and-down humps through the dot-com era, whatever their differences of
detail.

[Al Eisner]

Post by Max Hauser
No idea what's behind the Brigitte's situation though; owner may have had
other plans for the space. As happened recently to the former Palo Alto
Coffee Roasting Company, an 18-year anchor of the specialty ingredients
corner of the Stanford Shopping Center.

The new "Italian linens" place is still not open. It's really baffling
to me, since the food-oreineted "Street Market" was probably the best
idea the Stanford center had. Why infringe on it? And why make it so
hard to get a decent cup of coffee?

[Max Hauser]

...
It's really baffling to me, since the food-oreineted "Street Market" was
probably the best idea the Stanford center had. Why infringe on it? And
why make it so hard to get a decent cup of coffee?

All of those good points reflect the image of the Center established before
its sale (a few years ago) by the univ. to the private firm. Could be that
compensation of responsible individuals today at that private firm reflects
the much-mentioned factors (see May 06 thread) of revenue streams and brand
recognition, more than the worthy but less tangible factors cited above.
(And, again: recent managers might even be unaware of this aspect of the
Center's draw, tangibility aside. I've seen thriving high-end shopping
centers in other towns and states, and none had quite the cluster of local
artisanal independent food shops that the Stanford center had. This may be
a fluke within the modern shopping center industry, and off the radar of
professionals in that industry.)

[Steve Fenwick]

Post by Max Hauser

...
It's really baffling to me, since the food-oreineted "Street Market" was
probably the best idea the Stanford center had. Why infringe on it? And
why make it so hard to get a decent cup of coffee?

All of those good points reflect the image of the Center established before
its sale (a few years ago) by the univ. to the private firm. Could be that
compensation of responsible individuals today at that private firm reflects
the much-mentioned factors (see May 06 thread) of revenue streams and brand
recognition, more than the worthy but less tangible factors cited above.
(And, again: recent managers might even be unaware of this aspect of the
Center's draw, tangibility aside. I've seen thriving high-end shopping
centers in other towns and states, and none had quite the cluster of local
artisanal independent food shops that the Stanford center had. This may be
a fluke within the modern shopping center industry, and off the radar of
professionals in that industry.)

In this case, it really does appear to be pressure from/favoritism
towards Starbucks. I guessed at that, but
here's the tale:

<http://www.metroactive.com/metro/07.26.06/stanford-shopping-center-0630.
html>

Post by Max Hauser
In Palo Alto, however, Starbucks did what Hope couldn't--establish a lasting
presence at the Stanford Mall under the new ownership. The franchise was the
first new tenant under the Simon Group, making it the 43rd Starbucks to be
found in a Simon Group-owned mall.
[Terri] Hope [the owner of the PA Roasting Co.]says she was shown the door when the time came to renew her lease.
"I was told that they preferred to rent to a Triple A tenant," she recalls.
"I said, What is a Triple A tenant? They told me it was a business that would
have a national chain and national marketing. I was flooredit took me a while
to digest what I was told. Historically, [with the Stanford managers] I was
always offered renewals of my lease."
Her conversation, she says, with Simon Group leasing agent Robb Cox lasted
only a few minutes--she describes it as a "short, blunt conversation"--and,
despite Hope's offer to pay an increased rent, Cox refused to budge (Cox did
not return calls seeking comment.) Later, the mall's managers did offer to
relocate her from her plum location in the street market to another area in
the mall, but, after examining the space they offered, she decided she
couldn't justify the $500,000 investment such a move would take.
But wasn't Palo Alto Coffee Roasting just as integral to the shape of the
street market? Indeed, it could be argued that fresh-roasted coffee adds as
much to atmosphere as fresh meats, fruits and vegetables.
"I don't think Teri fit the mix," answers Schaub. He points to the luxury
leather crafter Louis Vuitton directly across from Hope's location as an
indication that Simon may have wanted to segue into luxury retail at that
location in the street market. In that, he may have a point, as the store
taking the coffeehouse's place will be Frette, which advertises itself as
selling "fine Italian linens."
"She could see the writing on the wall," Schaub concludes. "It was baffling.
At one point, they said to her, Why don't you open a tea shop? She said, This
is what I do; I roast coffee beans. I hated to see her go--not only because I
had coffee there every morning at 11 o'clock. I see the center changing
because there are not as many startup enterprises. The days of the small
dream are gone--at least at this center. There's a lot of push for corporate,
already-tested models. That makes sense for the Simon Group; they have a
certain type of framework that works for them."

While this has accelerated under the new owners, it was also true under
Stanford--they chased out Sandy's Kitchen, Walgreen's, the old game
store, and a number of other places.

Personally, I just avoid Stanford Shopping Center as much as possible. I
hope it doesn't go the way of Sunnyvale Town Center, but in twenty
years? Wouldn't surprise me at all.

Steve

[Max Hauser]

Thanks for the quotations, Steve. I'd heard well-informed comments just
after Hope's departure, consistent with what's here (re Triple-A, moving to
another area remote from food street market, the "push for corporate,
already-tested models"). -- M

Post by Max Hauser
In Palo Alto, however, Starbucks did what Hope
couldn't -- establish a lasting presence at the
Stanford Mall under the new ownership.

To look at things from slightly broader perspective, many would call 18
years at the mall "lasting;" what happened next, by every account I know,
was a choice by the new mall owners; so why phrase it as above, with Hope as
even proximate actor in the sentence structure?

Hope's business was (like her remaining shop in downtown Los Gatos) not just
about prepared coffee but a retailer of beans from good sources (freshly
roasted locally, not by the ton, infrequently, out-of-state); tea leaves,*
other ingredients, equipment.

-- Max


* Around the early 1990s she even offered pressed black slabs of Chinese
tea, weighing a couple of pounds and molded with raised lettering, wrapped
in paper. Said they were used for money in past times, mainly decorative
now. They got the interest of a tea-connoisseur relative who was, though,
disappointed with the flavor on breaking off and brewing some up.

[Steve Fenwick]

Post by Max Hauser

Post by Max Hauser
In Palo Alto, however, Starbucks did what Hope
couldn't -- establish a lasting presence at the
Stanford Mall under the new ownership.

To look at things from slightly broader perspective, many would call 18
years at the mall "lasting;" what happened next, by every account I know,
was a choice by the new mall owners; so why phrase it as above, with Hope as
even proximate actor in the sentence structure?

Yes, it was wholly a choice by the new owners. I suppose "maintain a
lasting presence despite the change in ownership" would have been a more
meaningful phrasing. DSTM--not my words.

Post by Max Hauser
Hope's business was (like her remaining shop in downtown Los Gatos) not just
about prepared coffee but a retailer of beans from good sources (freshly
roasted locally, not by the ton, infrequently, out-of-state); tea leaves,*
other ingredients, equipment.

Some of which competes with other vendors (e.g., Williams-Sonoma), but
most directly with Starbucks, which has lots of leverage with the mall
owners.

Steve

[Steve Fenwick]

In article

Post by Al Eisner

Post by Max Hauser
No idea what's behind the Brigitte's situation though; owner may have had
other plans for the space. As happened recently to the former Palo Alto
Coffee Roasting Company, an 18-year anchor of the specialty ingredients
corner of the Stanford Shopping Center.

The new "Italian linens" place is still not open. It's really baffling
to me, since the food-oreineted "Street Market" was probably the best
idea the Stanford center had. Why infringe on it? And why make it so
hard to get a decent cup of coffee?

Pressure from/favoritism towards Starbucks. I guessed at that, but
here's the tale:

<http://www.metroactive.com/metro/07.26.06/stanford-shopping-center-0630.
html>

Personally, I just avoid Stanford Shopping Center as much as possible.

Steve

[Al Eisner]

Post by Steve Fenwick
In article

Post by Al Eisner

Post by Max Hauser
No idea what's behind the Brigitte's situation though; owner may have had
other plans for the space. As happened recently to the former Palo Alto
Coffee Roasting Company, an 18-year anchor of the specialty ingredients
corner of the Stanford Shopping Center.

The new "Italian linens" place is still not open. It's really baffling
to me, since the food-oreineted "Street Market" was probably the best
idea the Stanford center had. Why infringe on it? And why make it so
hard to get a decent cup of coffee?

Pressure from/favoritism towards Starbucks. I guessed at that, but
<http://www.metroactive.com/metro/07.26.06/stanford-shopping-center-0630.
html>

There is little in there about pressure from Starbuck's beyond an
assertion in one or two sentences. The distance of that location from
Starbucks is fairly large (I've surely encountered multiple Starbucks
outlets at smaller distances). And I have the impression that Starbucks
doesn't worry much about that sort of competition -- they have the name
and will get their business regardless. In fact, a much lengthier
portion of the article contains comments from David Schaub, suggesting
a much different (and to me more plausible) explanation. Moreover,
the article notes that a different location in the Center was offered.
That also suggests more than meets the eye.

Post by Steve Fenwick
Personally, I just avoid Stanford Shopping Center as much as possible.

Your choice, of course (How does one avoid something "as much as
possible"?)

[Steve Fenwick]

In article

Post by Al Eisner

Post by Steve Fenwick
Personally, I just avoid Stanford Shopping Center as much as possible.

Your choice, of course (How does one avoid something "as much as
possible"?)

I occasionally like to buy groceries at Andronico's and clothes at
Nordstrom's. As my distaste for the new owners' practices and store
choices grows, I try harder to shop elsewhere.

In other words, my resolve in this matter is not absolute. But it's
getting easier to observe.

Steve

[Al Eisner]

Post by Steve Fenwick
In article

Post by Al Eisner

Post by Steve Fenwick
Personally, I just avoid Stanford Shopping Center as much as possible.

Your choice, of course (How does one avoid something "as much as
possible"?)

I occasionally like to buy groceries at Andronico's and clothes at
Nordstrom's. As my distaste for the new owners' practices and store
choices grows, I try harder to shop elsewhere.
In other words, my resolve in this matter is not absolute. But it's
getting easier to observe.

On the other hand, maybe it counters the attitude of the owners to
patronize the Street Market. In fact, most of my visits to the Center
are to Sigona's and Oakville. Plus an occasional visit to Macy's (I
dislike their stores, but sometimes it's unavoidable) or
Nordstrom (a nice store which apparently differs from "Nordstrom's").
And rare visits to one or another of the specialty stores, many of
which are still unique (not the same old stuff at all the malls).

[Steve Fenwick]

In article

Post by Al Eisner
On the other hand, maybe it counters the attitude of the owners to
patronize the Street Market. In fact, most of my visits to the Center
are to Sigona's and Oakville.

While I'd like to believe you are correct, I suspect that if an
apparently profitable, thriving business like PARC couldn't make it,
then there's more to it than that. My impression from the article is
that Schaub's survives by virtue of its lack of ready-made national or
regional competition.

Post by Al Eisner
Plus an occasional visit to Macy's (I
dislike their stores, but sometimes it's unavoidable) or
Nordstrom (a nice store which apparently differs from "Nordstrom's").

Oh, please, let's not start *that* again...

Post by Al Eisner
And rare visits to one or another of the specialty stores, many of
which are still unique (not the same old stuff at all the malls).

Uniqueness is not the only factor, and not all leases come due at the
same time...

ObBAFood: Neto on Castro (Mountain View) was apparently holding open
interviews today. Also, the new tacqueria had its doors open, but still
doing a lot of work inside.

Kauai Grill is still turning out the best Kalbi ribs I've ever had--big
pieces of meat, way more than bone. Dinner there tonight, under $20 for
more food than four normal, healthy adults probably should eat.

Steve

[Al Eisner]

Post by Steve Fenwick
In article

Post by Al Eisner
On the other hand, maybe it counters the attitude of the owners to
patronize the Street Market. In fact, most of my visits to the Center
are to Sigona's and Oakville.

While I'd like to believe you are correct, I suspect that if an
apparently profitable, thriving business like PARC couldn't make it,
then there's more to it than that. My impression from the article is
that Schaub's survives by virtue of its lack of ready-made national or
regional competition.

Still, I think the PARC situation is more complex than readily meets
the eye. It seems to be a conflict of vision for the Center.

Post by Steve Fenwick

Post by Al Eisner
Plus an occasional visit to Macy's (I
dislike their stores, but sometimes it's unavoidable) or
Nordstrom (a nice store which apparently differs from "Nordstrom's").

Oh, please, let's not start *that* again...

Sorry, couldn't resist. I'll be more careful in the future! (You too?)

[bizbee]

On Tue, 19 Sep 2006 21:21:21 -0700 in

Post by Max Hauser

[I wrote:]
It sucks, but who the hell signs a four year lease?

Hi bizbee, I don't quite understand the question. Brigitte's announcement
thanked supporters for past four years of business, didn't mention lease
term.

The original post said "lease not renewed." They've been there for
four years... unless they leased the place for the preceeding 6 years
to opening, it strikes me that it may have been a four year lease...

[axlq]

Post by bizbee

Post by Max Hauser
Hi bizbee, I don't quite understand the question. Brigitte's announcement
thanked supporters for past four years of business, didn't mention lease
term.

The original post said "lease not renewed." They've been there for
four years... unless they leased the place for the preceeding 6 years
to opening, it strikes me that it may have been a four year lease...

I went there for my last dinner. Briggitte told me the building was
bought by a new owner, who has other plans for the building and didn't
renew the lease (and probably didn't have to honor the terms of the
original lease).

-A