Lisa Carolan, an associate with CB Richard Ellis who worked on behalf of 180 N. Jefferson, says the Saxbys' long-term commitment gives further evidence to the West Loop's renaissance, as well as the company's dedication to growth in the Chicago market.
The coffee retailer pledges to conquer the java market by way of franchised stores. According the company's website, the company believes "that through franchising we will become the largest gourmet coffee chain in America by 2010."
Initial cash investment required for a franchise store is $10,000, however the minimal personal cash investment can range between $125,000 to $250,000, or more, depending upon the site, market area, and location development.
There is no doubt that franchising has worked in the coffee and pastry industry. Quincy, MA-based Dunkin' Donuts has thrived using this strategy. There are now more than 6,000 Dunkin' Donuts worldwide in 30 countries. In the US there are approximately 4,400 Dunkin' Donuts locations across 36 states. Internationally, there are over 1,700 Dunkin' Donuts locations in 29 countries.
Most recently, Dunkin' announced that it had reached agreements with 20 franchisees in January with commitments to open 59 new Dunkin' Donuts stores. As part the company's market expansion efforts, the new franchise deals include 10 stores in the New England area, 17 in New York; 14 in Pennsylvania, four in Virginia, six in the Charlotte metro area of North Carolina, and eight in the Chicago.
Another leading competitor, Seattle-based Starbucks, does not franchise but rather opens company-operated locations and allows qualified high volume/high traffic retail or foodservice operations to own and operate a Starbucks licensed store. Examples include: large hotels, hospitals and college or university campus environments. This has also proven to be a successful tactic. Today, Starbuck operates 87 stores in Chicago, 35 of which are located a mile or less from 180 N. Jefferson.
But those staggering numbers haven't stopped Saxbys from pursuing its lofty goal. The company is now in negotiations for seven additional leases in the Chicago area and plans to expand in cities across the country, including New York City. Currently, the company operates three stores in Colorado.
CB Richard Ellis' Sharon Kahan, Lisa Carolan and Kathleen Giouroukos, worked on behalf of 180 N. Jefferson LLC, while Kim Olson of Baird & Warner represented Saxbys.
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