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
Vornado CEO Steve Roth and 595 Madison Avenue (Credit: Google Maps and Getty Images)

Fendi, Berluti take over old Coach flagship at 595 Madison

From left: Authentic Brands Group CEO Jamie Salter, Simon Property Group CEO David Simon, and Forever 21 CEO Do Won Chang (Credit: Getty Images)

Forever 21’s biggest landlord could become its new owner

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

250th Issue

The Real Deal celebrates 250 issues

Ex-Barneys CEO Daniella Vitale (Credit: Getty Images, Google Maps)

Barneys’ lights still on, but workers left in dark

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here

arrow_forward_ios
Loading...