Calgary Openings, Closings, and Developments

[GGG]

Originally Posted by Yoho

https://twitter.com/user/status/1610415751609085953

That seems like a pretty misleading tweet as it appears that it was an impass between the landlord and the owner that led to the closure.

https://calgaryherald.com/news/local...49e58971a/amp/

“I think I’m typical of the food and beverage industry where costs have risen — rent, taxes, food costs are soaring through the roof — so we had diminished margins and increased costs, and it’s a very old and expensive building to keep on the road,” he said, adding an agreement could not be reached between owners and the landlord, which ultimately led to the closure.

Davis runs two restaurants in the city’s south, which he said will keep him busy.

[Mazrim]

Originally Posted by GGG

That seems like a pretty misleading tweet as it appears that it was an impass between the landlord and the owner that led to the closure.

Cory Morgan with an inaccurate tweet? Never...

[Fuzz]

Yoho posting an inaccurate Corey Morgan tweet? Never...

[Bill Bumface]

Originally Posted by Weitz

They announced this morning they are permanently closing.

Wow. That sucks. My friend that works there was totally lied to.

[Johnny Makarov]

Originally Posted by Fuzz

Yoho posting an inaccurate Corey Morgan tweet? Never...

Yoho can go eff off posting Cory Moron BS.

[jayswin]

Originally Posted by Bill Bumface

Wow. That sucks. My friend that works there was totally lied to.

Probably so they'd keep working unit the close.

[Shazam]

I thought somebody new is moving into that space.

[fundmark19]

Originally Posted by Shazam

I thought somebody new is moving into that space.

Instagram said hose and hound had a deal in place but that it fell through. I have no idea if this is true or not though. Going stictly off of the comments.

[Zarley]

Originally Posted by fundmark19

Instagram said hose and hound had a deal in place but that it fell through. I have no idea if this is true or not though. Going stictly off of the comments.

This is the word on the street - Hose and Hound was going to come in and do a major reno but the property owner wanted a rent increase that torpedoed the pro-forma.

[Locke]

Who is the property owner?

You'd have to be out of your mind to jack up commercial rental costs in this market. Especially for a restaurant.

[Shazam]

Originally Posted by Zarley

This is the word on the street - Hose and Hound was going to come in and do a major reno but the property owner wanted a rent increase that torpedoed the pro-forma.

I heard it was one of the big groups.

[Locke]

Originally Posted by Shazam

I heard it was one of the big groups.

See, thats where it gets shaky, because usually the bigger groups have a ton of profitable properties so they can take a risk on raising the rent because the worst case scenario is they have a vacant property loss to write against their profitable properties and they have enough cash-flow that they can float it for a while.

[Shazam]

Only rumours.

But the lease just ended, so there's going to be some negotiations going on.

[Locke]

Originally Posted by Shazam

Only rumours.

But the lease just ended, so there's going to be some negotiations going on.

I assume you mean with other interested parties? Because if the Rose & Crown's stuff is being auctioned off I'm assuming that owner is done, dusted and gone.

Maybe someone more well-versed in this sort of thing can chime in, I only have experience in office locations.

I just think that in a market squeezed as tight as right now any realistic landlord would want to maintain their current tenant. Unless there were some seriously extenuating circumstances like....I dont know, if they dropped the rent 40% during COVID and want to return to normal and R&C said 'no way' or something like that.

I just think its madness for a landlord to realistically want to raise rent on a restaurant in this post-COVID economic environment.

You're talking about an industry that has been getting kicked in the teeth for the better part of 2 years and coming out of that is dealing with huge jumps in food, utility and labour costs in conjunction with massive inflation which makes their product more expensive and leaves their customers with fewer disposable dollars.

You'd imagine if they had a decent rent-paying restaurant tenant they'd be holding onto them like Grim Death.

[Muta]

They should paint that place every color possible and turn it into a sexy laundromat. Just because it'd be funny and absolutely no one would expect it.

[Shazam]

Originally Posted by Locke

I assume you mean with other interested parties? Because if the Rose & Crown's stuff is being auctioned off I'm assuming that owner is done, dusted and gone.

Maybe someone more well-versed in this sort of thing can chime in, I only have experience in office locations.

I just think that in a market squeezed as tight as right now any realistic landlord would want to maintain their current tenant. Unless there were some seriously extenuating circumstances like....I dont know, if they dropped the rent 40% during COVID and want to return to normal and R&C said 'no way' or something like that.

I just think its madness for a landlord to realistically want to raise rent on a restaurant in this post-COVID economic environment.

You're talking about an industry that has been getting kicked in the teeth for the better part of 2 years and coming out of that is dealing with huge jumps in food, utility and labour costs in conjunction with massive inflation which makes their product more expensive and leaves their customers with fewer disposable dollars.

You'd imagine if they had a decent rent-paying restaurant tenant they'd be holding onto them like Grim Death.

Sounds to me like the landlord might have gotten played.

[Locke]

Originally Posted by Shazam

Sounds to me like the landlord might have gotten played.

In what sense?

[Shazam]

Originally Posted by Locke

In what sense?

Well now there's no one giving him rent.

[Cecil Terwilliger]

Originally Posted by Locke

I assume you mean with other interested parties? Because if the Rose & Crown's stuff is being auctioned off I'm assuming that owner is done, dusted and gone.

Maybe someone more well-versed in this sort of thing can chime in, I only have experience in office locations.

I just think that in a market squeezed as tight as right now any realistic landlord would want to maintain their current tenant. Unless there were some seriously extenuating circumstances like....I dont know, if they dropped the rent 40% during COVID and want to return to normal and R&C said 'no way' or something like that.

I just think its madness for a landlord to realistically want to raise rent on a restaurant in this post-COVID economic environment.

You're talking about an industry that has been getting kicked in the teeth for the better part of 2 years and coming out of that is dealing with huge jumps in food, utility and labour costs in conjunction with massive inflation which makes their product more expensive and leaves their customers with fewer disposable dollars.

You'd imagine if they had a decent rent-paying restaurant tenant they'd be holding onto them like Grim Death.

The economic environment is not nearly as dire as you think. That location should be a license to print money. Basically any pub or restaurant on 17th or 4th st that isn’t a total dive is full every day of the week all summer and every weekend all winter. Plus holidays and special occasions. And if it’s a popular spot, it’s full basically 7 days a week.

The landlord will find someone who thinks the rent is worth it.

Actually I wouldn’t be surprised if they want to develop that land to put in more valuable tenants, as long as it isn’t a historic building or anything.

[iggy_oi]

Originally Posted by Locke

You're talking about an industry that has been getting kicked in the teeth for the better part of 2 years and coming out of that is dealing with huge jumps in food, utility and labour costs in conjunction with massive inflation which makes their product more expensive and leaves their customers with fewer disposable dollars.

I agree with most of your post but unless I’ve missed a recent government announcement that they’ve raised the minimum wage then I don’t think that the bolded is a major factor in that industry.