The Raising Cane’s restaurant on Corporate Boulevard near Interstate 10 that closed Christmas Eve was one of the chain’s first locations, opening on the site in 2004, and did a brisk business, according to both Cane’s and a broker representing the landlord.
So why did the rapidly growing company decide to permanently shutter the restaurant so suddenly?
Because of an inability to come to terms over a long-term lease renewal, both sides confirm.
For 15 years, Cane’s leased the 3,500-square foot building from local investors Giovanni Mucciacciaro and members of the Salvaggio family, who co-own the property through their College Retail LLC.
The landlords spent $1 million building the restaurant in 2004, at a time when commercial real estate in the area was going for about half the $30 per square foot it does currently, according to broker Mark Hebert, who represents the landlords.
In return, Cane’s signed a 15-year lease that increased by 10% every five years.
When it came time to renew the least late this year, however, Cane’s wanted a reduction that Hebert says his client couldn’t live with.
“They wanted a reduction in rent that did not correspond with the sales of the restaurant,” he says. “The landlord agreed to keep the rent the same for the next 10 years but they wanted a reduction.”
Cane’s spokeswoman Julie Perrault confirms the contested lease negotiations were behind the decision to close, though she declines to discuss specifics.
“We are exploring other sites to eventually replace this restaurant,” Perrault says. “However, our top priority currently is ensuring a smooth transition for our affected crew members.”
Those employees have been transferred to positions at the chain’s other 19 area locations.
Hebert is optimistic the location will lease up quickly, given its proximity to I-10.
Still, he is disappointed the high-stakes negotiation resulted in the closure of the popular restaurant.
“When something like this happens nobody wins,” he says. “It’s not like either party is claiming victory. But the rental rate reduction they wanted was more than we could live with.”
