The Real Deal New York

Au Bon Pain plans Manhattan expansion

By Miranda Neubauer | September 06, 2011 03:40PM

From left: Bill Miller, vice president for New York real estate at Au Bon Pain, Au Bon Pain location on Fifth Avenue and Chase Welles and Jacqueline Klinger, vice presidents at Northwest Atlantic

Au Bon Pain plans to expand its presence in Manhattan with smaller
stores in the next two years, according to Bill Miller, the company’s
new vice president for real estate in New York.

The chain is looking for spaces in the range of 1,500 to 2,000 square
feet, primarily in vertical density locations in lobbies of Midtown
office buildings. Au Bon Pain is searching for smaller footprints as it
has made changes to its store design to increase efficiency. The
company currently has about 20 locations in the New York City area,
and plans to open two to four locations in 2012, and about six in
2013.

“Fortunately for us we have a lot of design flexibility,” Miller said.
“Unlike other retailers, we can make spaces work for us.”

In a change from the past, Au Bon Pain will increasingly not bake on-site at new or existing locations.

“We really have more of a grab-and-go concept,” he said. “We’re
finding that the seating area is not all that essential, especially in
a transient market like Manhattan.”

Au Bon Pain launched a new prototype of its stores in New York City
earlier this summer, he said, with a redesign and new signage
emphasizing Au Bon Pain as a café-bakery.

“From some of the landlords and some of the community we were viewed
as a tired brand, but we’ve changed that,” Miller said, with the
renovations of several existing stores. “My hiring is a key indicator
of our desire to grow.”

Miller, who started in his new position in July, said that the company
is also looking for opportunities to partner with hospitals,
transportation centers and universities to open locations there.

Au Bon Pain already has a presence in the World Financial Center and
the
Port Authority of New York & New Jersey
, and hopes to get
a space in the new World Trade Center. 

Northwest Atlantic is Au Bon Pain’s exclusive broker in Manhattan,
Miller said, adding that the company has been working with Chase
Welles and Jacqueline Klinger, who are both vice presidents of the
company.

Miller called the marketplace for Au Bon Pain “very competitive” thanks to eateries like Pret
A Manger
and the beverage chains that sell food,
like Starbucks
and Coffee
Bean & Tea Leaf
.

In addition, Au Bon Pain faces a tough real estate climate.

“Banks are still getting in our way. We find ourselves competing
against cell phone companies,” he said.

Au Bon Pain pays market rates, and last year opened a
location in the Empire State Building, Welles noted. Klinger was not immediately available for comment.

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