As rents rise, ubiquitous food chains are closing stores in Manhattan (and nationally)

Pret A Manger, Panera Bread, Starbucks and Chipotle have all announced closures

TRD New York /
Jul.July 01, 2018 11:00 AM

Empty retail space and a Starbucks in Manhattan

British grab-and-go food chain Pret A Manger announced Friday it was closing three stores in Manhattan.

“After opening a record number of shops in the U.S. last year, we’ve had a good look at the real estate and felt it necessary to close three New York locations whose rents made them unlikely to be profitable—125 Chambers Street, 437 Fifth Avenue and 38 West 48th Street,” a company spokesperson told Commercial Observer.

Pret isn’t alone. Panera Bread and Maison Keyser have also recently closed Manhattan locations, CO reported. And nationally, Starbucks and Chipotle announced they would have to close 150 and 65 stores, respectively.

Some industry professionals think too many chains thought they could successfully compete in the Manhattan market. “With all the amazing pastries, soups and sandwiches available in New York City, why on earth would anyone go to a Panera?” said Newmark Knight Frank retail broker Jeffrey Roseman.

Retail rents rose 50 percent in Manhattan between 2010 and 2017, according to a report from real estate firm CBRE. [Commercial Observer] —Will Parker

 

Related Articles

arrow_forward_ios
22-15 31st Street (Google Maps)

Supermarket signals demise as Target eyes Astoria

Supermarket signals demise as Target eyes Astoria
Danny Meyer (USHG, iStock)

Danny Meyer’s USHG got $11M+ in PPP cash

Danny Meyer’s USHG got $11M+ in PPP cash
Mayor Bill de Blasio (Getty, Wikimedia)

Landlords challenge city laws protecting non-paying businesses

Landlords challenge city laws protecting non-paying businesses
From left: G.H. Palmer's Geoffrey Palme, RFR Holdings' Aby Rosen, Macklowe Properties' Harry Macklowe, Thor Equities' Joseph Sitt and Ellicott Development's Carl Paladino (Getty, iStock)

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks
Photo illustration of Ryan Serhant and  22-43 Jackson Avenue (Getty, Trader Joe's) 

Trader Joe’s to open in LIC early next year

Trader Joe’s to open in LIC early next year
Shawn Mobley (left), is being replaced by Andrew McDonald (right) as CEO of the Americas at Cushman

Shakeup at Cushman: Mobley out, McDonald promoted

Shakeup at Cushman: Mobley out, McDonald promoted
(iStock)

To survive, NYC retailers are treating average Joe’s like they’re rich

To survive, NYC retailers are treating average Joe’s like they’re rich
Governor Andrew Cuomo and Roosevelt Field Mall in Long Island (Getty)

Malls allowed to reopen in New York state — with strict guidelines

Malls allowed to reopen in New York state — with strict guidelines
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...