Wednesday, November 30, 2011

Landlord Jim Sears Forces Tenants Out of Center In The Square, Tenants NEED New Location

Landlord Jim Sears apparently decided to remodel his building.  That's all good but apparently he had a lease with some tenants that did not forewarn them of his intentions. The tenants, the Little Dipper Cafe, were given a couple of options.

- One to move into another location but shut their business down for "maybe" 4 to 5 months. I'm not sure what business can shut their doors down and survive for that period of time. Pretty much the same thing the city did to their tenants in the City Market Building but they did it for a longer period of time.

- The other option was a 6 month extension in her currant location however this extension included a clause that allowed Jim to give them 7 days notice to move whenever he wanted them to go. So from what the video says it doesn't appear that the 6 months was solid.

The government sets a standard of what is acceptable and ethical business practice and when they strong arm their tenants into closing their businesses down they set the climate for other landlords. Morals and values are missing in our society today. This just shows how you one day can have something and the next it can be taken away from you at the drop of a hat.

These hard working people need time to relocate their business and at least an additional 6 months to notify all of their customers of their new location. Just moving in itself will dramatically impact their business. In the restaurant industry, people typically will drive 5 miles maximum to eat. Those are the stats. How do I know this? Because I am a marketing consultant and have seen lots of marketing research on the restaurant industry as I have had a number of restaurants as my clients. If she locates her business outside of the downtown area she will be required to completely develop a new customer base. And it will cost her a pretty penny in advertising to do so.

Now lets look at the Kroger rehabs. Kroger recently went through an extensive rehab of all of their stores in the Roanoke area. You didn't see them shut down their business when doing so. And when you see a Walmart rehab their building you don't see them shutting down their store to do so either. They quarantine off areas and shuffle things around so they can continue to operate as keeping the stores open is what pays the bills. Sure, this would cost the landlord a little more money but I don't see it as being a catastrophic amount more.

Another ethical option if this was not possible for some unknown reason would be to give the tenants plenty of notice. Give them a year notice without this 7 days and I can shut you down clause and allow them adequate time to find another location in the same general area and time to notify all of their customers. that are not necessarily there every month. of the new location.

Have a look at the Channel 10 video and if you have a location for the Little Dipper Cafe give them a call asap and let them know. See their contact information on their web page. Click Here


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