In a move which is unsurprising yet sad, the Savage City Council has agreed to allow yet another restaurant to fill the vacant space left by the Savage Depot Bistro. While the ownership/management of the Savage Depot Bistro had a variety of bad business decisions of their own which led to their (admittedly longer than I expected) demise, this new venture is dead from the get go.
The new restaurant known as “Flavor at the Depot” (or FLaVOR at the Depot as quoted by Burnsville Patch which would be even more ridiculous) will be a breakfast and lunch spot which means the two sisters opening the place are already shooting themselves in the foot by competing with nearby staple Windmill Cafe, but also because they’re not going to be able to sell enough meals after year one to make the ever-increasing rent:
From the Savage Pacer article:
The proposal reviewed by the EDC Wednesday requests a five-year lease with an option to renew for an additional five years. Proposed rent for the first six months would be $1 per month, then $500 per month for months seven through 12. The rent would increase in year two to $750 per month.
According to the Burnsville Patch article, the rent will continue increasing up to $1500 in year 5 which works out to an average of about $950/month over the five year term, something the City of Savage is unlikely to have to even think about.
The place is doomed from the start. It’s small, it has mandated limitations due to its historical state, it is in an area full of heavy competition from other well-established restaurants covering the entire gambit of types (Mexican, fast-food, bar, sports bar/wing joint, breakfast/lunch, etc), and most importantly, the name is simply awful.
What do you think about this one? Would you walk into a lease which you know is going to continue to increase over time eating away at whatever profits you were making? Do you think the City is being fair to the residents of Savage by charging a pittance for the first year? Do you think this one has any chance of making it knowing what they’re trying to do and the competition in the area? Whatever you have to say go ahead and comment on as I’d love to hear your thoughts.