One of the oldest Starbucks stores in Vancouver, at the southwest corner of Robson and Thurlow streets, is closing.
Starbucks Coffee Co. (Nasdaq:SBUX) has announced it will close its 1099 Robson Street store May 28, and move its 14 employees to other locations – including the one right across the street.
The company’s lease for the Robson Street location is up, and the company said it has been unable to agree on renewal terms with the landlord, Robson Holdings Ltd., an offshore holding company.
A rent increase was just one of the stumbling blocks, Cindy Bokitch, regional vice-president of operations for Starbucks, Western Canada, told Business in Vancouver.
The main sticking point was an inability to get a lease term Starbucks could agree to, as well as a demolition clause that would have given the landlord the right to evict Starbucks within six months, should the property be redeveloped.
“They want to renew for a short term – one to five years,” Bokitch said. “The problem is that they want a demolition clause in it. We need to renovate the store – it’s tired, it’s time. But I don’t want to put the money in if I’ve got the demolition clause.”
Whether the landlord is planning to redevelop the property anytime soon is uncertain. The property management company handling the negotiations on behalf of Robson Holdings did not respond to a request for an interview.
Opened in 1988, the Robson Street Starbucks was the third to open in Vancouver. It is remarkable in the fact that it is mirrored by another Starbucks right across the street on the north side of Robson and Thurlow.
