Simon Property Group, based in Indianapolis, terminated the theater's lease as stipulated in the contract with Knoxville, TN-based Regal Cinemas and signed one with the Cheesecake Factory Inc., based in Calabasas Hills, CA. The state-of-the-art casual dining restaurant will open in the fall, says Billie Scott of Simon Property Group.
Scott declined to discuss details of the Cheesecake Factory lease. The restaurant company, in regulatory filings, said it leases all its restaurants for 10 years to 20 years.Simon Property Group acquired the 209,000-sf shopping center in 1999 from Dallas-based Trammell Crow Co., the center's developer.
The 209,000-sf Arboretum center is in line with the Cheesecake Factory's strategy of putting restaurants in high-profile, densely populated areas with a mix of residences, businesses, shopping and entertainment. Stores in the center include Barnes & Noble, Pottery Barn, Structure, Bath & Body and Sharper Image.
Howard Gordon, the Cheesecake Factory's vice president of marketing, tells GlobeSt.com that the Austin restaurant will be 10,000 sf to 11,000 sf. The sizes of its existing lineup range from 5,400 sf to 17,300 sf. Average annual sales per store were $10.7 million in its fiscal year ending Jan. 1, 2000 and average sales per productive sf were $1,000. The Cheesecake Factory will open its 50th restaurant Feb. 21 at San Antonio's Northstar Mall. It also has restaurants in Dallas, Frisco and Houston.
Representatives of Regal Cinemas, which has filed for bankruptcy protection, did not return calls. The company acquired the Arbor in 1998 through a merger with ACT III Theaters. The theater was built by Presidio Enterprises, owned by brothers Charles and Richard Chick.
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