Gloria Jean's Coffees may close, owne...

Gloria Jean's Coffees may close, owner says.

There are 77 comments on the The York Daily Record story from Jan 5, 2010, titled Gloria Jean's Coffees may close, owner says.. In it, The York Daily Record reports that:

Gloria Jean's Coffees, a 20-year-old coffee shop on the top floor of the York Galleria in Springettsbury Township, may close for good when its lease expires at the end of January, the shop's owner said, despite the shop owner's efforts to sell the franchise to another mall tenant.

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drew pfafflin

Harrisburg, PA

#1 Jan 5, 2010
high priced coffee + low rent inbred trash = NO SALE!!!
Dreamin

Kingston, PA

#2 Jan 5, 2010
I'm always amazed how these small business owners think these businesses have some value, and that they can "sell" these businesses for some ridiculous amount of money.

Few businesses are worth anything today.

Get used to it.....it's the new "normal."
DMT

Harrisburg, PA

#3 Jan 5, 2010
No where in the article did it state that she was trying to sell her business for a large sum of money. I believe it said that she already had a buyer lined up.
Dreamin

Kingston, PA

#4 Jan 5, 2010
....But the mall owner not willing to go along with the plan. No doubt, they know something we don't, and is "planning ahead."
Luck

Lenexa, KS

#5 Jan 5, 2010
Good Luck to her. I'm sure she feels slighted since she's been with the mall since it's existence... Though difficult, try not to take it personal. The Galleria is out for their best interest as well..TO MAKE MONEY..Strictly business... Crummy little mall...

Since: Dec 08

Dover, PA

#6 Jan 5, 2010
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What I'm more curious about is why the landlord is not interested in renewing the lease???
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In this economic climate, most landlords are willing to be creative ... especially with long-time, profitable tenants. What hasn't been reported???
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Existing businesses do have value. The amount of that value is determined by many factors ... with some measure of profitability being king in most cases. Small businesses can be EXTREMELY valuable when they possess something that allows a larger business to add 1+1 and get a number significantly greater than 2.
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There is no "new normal" in business valuation ... remember the "Internet Boom of the 1990's" where "the old rules didn't apply" ... but then ooooops, there was an "Internet Bust" starting in 2000 because people realized that profits count ... and B***S*** walks!
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Dreamin

Kingston, PA

#7 Jan 5, 2010
PSUmba wrote:
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What I'm more curious about is why the landlord is not interested in renewing the lease???
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In this economic climate, most landlords are willing to be creative ... especially with long-time, profitable tenants. What hasn't been reported???
.
Existing businesses do have value. The amount of that value is determined by many factors ... with some measure of profitability being king in most cases. Small businesses can be EXTREMELY valuable when they possess something that allows a larger business to add 1+1 and get a number significantly greater than 2.
.
There is no "new normal" in business valuation ... remember the "Internet Boom of the 1990's" where "the old rules didn't apply" ... but then ooooops, there was an "Internet Bust" starting in 2000 because people realized that profits count ... and B***S*** walks!
.
....No doubt, you're a small business owner.
Bill

York, PA

#8 Jan 5, 2010
CBL has been doing this to other stores in the mall since they bought the mall two years ago. They have refused to fix problems in the stores they want out of the mall and forced stores to move so they could get extra square footage to try and get new stores in.
THE economy

York, PA

#9 Jan 5, 2010
It's the economy stupid. High priced: coffee shops, Harley's, homes, auto's, etc. do not fit in too many families budgets these days. And never sell the USA down the drain. We WILL recover...when...anyones guess...but WE WILL make it. Persevere or run around with your tail between your legs. If someone with just a bit of intelligence would tell us WHAT needs to be done, I do believe we would get it on. Till then, hang in there.

Since: Dec 08

Dover, PA

#10 Jan 5, 2010
Dreamin wrote:
<quoted text>
....No doubt, you're a small business owner.
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I own stock in several privately-held businesses ... and have run one of them for the past 27 years. That business sits in a market niche where it has two direct competitors worldwide ... both of whom have been recently acquired by significantly larger businesses. Our sales are up significantly because both competitors have been affected with "Myers' Law of Corporate Acquisition" ... that is when companies get acquired, the acquirer often tries to "improve" the acquired company without understanding what made the company a success. That can take many forms (blindly cutting costs is #1, putting someone in charge who doesn't know the acquired business is #2). The bottom line is that the acquired company can quickly go to hades ... as have my competitors.
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I love it when my one competitor gets cited in the parent's corporate annual report as the cause of the parent's poor financial performance ... and the other's customers tell my sales force that their business is being de-emphasized. That's music to my ears!!!!
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Yes, I DO play with my own money ... as do most small business owners ... and that's what makes it personal ... for both the owner of Gloria Jean's and me!
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... but the "odds" are better than slot machines in a casino (for anyone other than my mother)... and I have some control over them ...
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meee

Media, PA

#11 Jan 5, 2010
Bill wrote:
CBL has been doing this to other stores in the mall since they bought the mall two years ago. They have refused to fix problems in the stores they want out of the mall and forced stores to move so they could get extra square footage to try and get new stores in.
Completely true.
Mar

Billings, MT

#12 Jan 5, 2010
Such a shame, they have such good coffee. So much better then Starbucks. I stop in every time I'm in the mall and they always have a line.
Manny

Mount Laurel, NJ

#13 Jan 5, 2010
Knowing that Sandy is a decent and honest person, I would believe her side of the story over some mall spokesperson who is reiterating the company line. I haven't walked through the mall in the last few months, but last time I did I noticed a number of vacancies. In today's business climate it does seem strange that they are taking such a stance. Maybe they are banking on Obama's economic boom.

Since: Dec 08

Dover, PA

#14 Jan 5, 2010
FWIW,(responding to the interim comments)
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We are in a global economy ... my English direct competitor was purchased by a USA-based company & my Australian competitor was purchased by a Swedish company. Harley-Davidson in Milwaukee is one of my USA-based customers.
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All of my company's labor is USA-based ... quite frankly, we outsource IT for a company selling products from India. That's like a "man bites dog story" these days!!!
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Being thrifty has become fashionable in the USA ... as was conspicuous consumption in the past. While that is good for some companies (Hyundai, for example), it has not helped Harley-Davidson ... who makes a "best in the world product" with York-based labor.
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You have to go to China to see a marketplace where conspicuous consumption is fashionable today!
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I can see where CBL would be motivated to negotiate hard with a tenant ... if they have been paying a "below market level" lease price. At lease extension, they want to bring the rental price back closer to the market rate. The tenant wants to keep the status quo. This sets up a confrontation where CBL will solicit new tenants (the lease will state that they have the right to show the property prior to lease end)... and the existing tenant gets squeezed. I've had to use the same tactic in my real estate management company.
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The endgame will be either that Gloria Jeans gets a new lease at current prices ... or that there will be a new tenant moving in!
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Lisa

New Cumberland, PA

#15 Jan 5, 2010
CBL is horrible. Had an awful experience with them since they took the mall over. Mall management is rude .
Gloria Jeans is a staple at that mall for local residents. The store is always busy and she takes pride in her business and well as her staff. I have been a loyal customer for 20 years. One would think the mall would do anything to keep a long term tenant who sells a product many people need. Coffee drinkers are the most loyal customers .

Look at the recent tenants being brought in- You have Brendas mirrored images- selling over priced hair pieces and home made purses- you have shady massage stores going in.
The same thing happened to Bourbon Street candy shop that had been in the mall since 89, raised her rent and forced her out, because a national chain wanted her spot!!!!
Shame on you CBL...
Yorkpa

Flushing, NY

#16 Jan 5, 2010
What a shame... The only reason I go to the Galleria Mall is for Gloria Jeans coffee.
meee

Media, PA

#17 Jan 5, 2010
All the comments about CBL are spot on. They are horrible to work with. The mall has MANY vacant spots that they can not fill. Why they want to run out a reputable business is beyond me. Fill the empty spaces before you get picky! Also, there has been an empty restaurant spot for over 2 years - there is NO sit-down restaurant in the mall. They have no business sense.

Gloria Jean's will be missed.
jls

Philadelphia, PA

#18 Jan 5, 2010
Well whoever owns that mall is horrible. The stores in the galleria are all trashy and it is starting to look like the west manchester mall! finish line had such a bad sewer problem that when you walked in the store you had to cover your nose and mouth. the students that worked there were actually having the customers sign a petition to present to the owners to get the problem fixed because they refused. i am very suprised that gloria jeans will be closing though. everythime i go to the mall i stop there for a coffe and there is always a long line! i will be sad to see it go.

Since: Dec 08

Dover, PA

#19 Jan 5, 2010
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I'd be shocked if CBL wanted to lose Gloria Jean's ... any more than Gloria Jean's wants to close down. Both are playing their hands in the "end of lease" poker game. The one who blinks ... loses!
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Over the years, I've played both sides in this game. The problem for Gloria Jean's is that time has shifted to CBL's side. For CBL, it's an issue of the loss of some revenue. For Gloria Jean's, it has become "life and death". "Life and death" trumps "revenue loss" ... so the endgame seems to be coming clear.
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Gloria Jean's should have nailed down the lease extension a long time ago. This is the price for not doing so!
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When you look at retail bankruptcies, one of the shocking things that you learn is the enormous "value" of the long-term, below market level leases that retail stores possess. When they close stores, they can often sell these leases to other retailers at a substantial financial gain!
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The mall owner doesn't see a cent of that money ...
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Clifford

York, PA

#20 Jan 5, 2010
too bad..love their coffee..if/when i do go to the mall, i always stop there

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