While the Capital Region may be a booming market for some fast casual restaurant chains, Schlotzsky’s isn’t among them. After just two years in operation, two area Schlotzksy’s locations—one at 5565 Essen Lane, the other at 1324 N. Airline Hwy. in Gonzales—have shut down.
Vibhore Jain, the franchisee who co-owned the local restaurants with his brother Avi Jain, declines to discuss the recent closure of his eateries except to say that, “the business wasn’t sustainable.”
Previous attempts by other franchisees to operate Schlotzsky’s restaurants in Baton Rouge have also proven unsuccessful. Two prior Schlotzksy’s locations—one on Jefferson Highway, the other on South Sherwood Forest Boulevard—closed between 2012 and 2015. But when the Essen Lane location opened in Jan. 2015, along with an adjacent Cinnabon, the building’s New Orleans-based landlord said he thought his new tenants would do well because they are experienced franchisees with other Schlotzsky’s restaurants around the country.
Local real estate brokers aren’t surprised, however. They note that Baton Rouge is a highly competitive market, especially in the deli and sandwich category of quick service restaurants. Quiznos, for instance, is another established national sandwich chain that failed locally. The last of its three restaurants closed in early 2016.
“You’ve got Jimmy John’s, Subway, Firehouse Subs, Schlotzsky’s, Quizno’s—there’s just too much in that category to compete with,” says Mark Hebert, a commercial broker with Kurz & Hebert Commercial Real Estate. “Especially in Baton Rouge, where people love their fried seafood and boiled crawfish. It makes it that much harder.”
Chronic congestion and construction intended to help alleviate the gridlock are also likely factors the Essen Lane location, in particular, did not do as well as expected, Hebert believes. A PJ’s Coffee House and Verizon wireless store that previously occupied the small strip center also closed after just a couple of years in business.
“Once the construction on Essen is finished it might get better,” Hebert says. “But for now, if you’ve got 30 minutes to sit down and eat a sandwich you’re going to spend another 30 minutes in traffic.”
—Stephanie Riegel
