Houston's - rough start

[George W.]

The same walk that took me by Ki's also took me by Houston's which is under construction on the S/E corner of Yonge and Wellington. I hadn't seen much activity there of late and now I see why, there is a NOTICE on the door saying the Landlord has changed the locks and padlocked the site - apparently Houston's owes $82,000 in back rent. I am sure the monthly rent must be high but I have no idea how many months this would represent. I am assuming this is the same Quebec-based Houston's that was on Adelaide W. near Duncan for a few years in the late 1990s.

Edited September 15, 2005 by George W. (log)

[piperdown]

The same walk that took me by Ki's also took me by Houston's which is under construction on the S/E corner of Yonge and Wellington.  I hadn't seen much activity there of late and now I see why, there is a NOTICE on the door saying the Landlord has changed the locks and padlocked the site - apparently Houston's owes $82,000 in back rent.  I am sure the monthly rent must be high but I have no idea how many months this would represent.  I am assuming this is the same Quebec-based Houston's that was on Adelaide W. near Duncan for a few yers in the late 19990s.

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WOW they really expect rent from a restaurant that's not opening for another 18,000 years? Toronto is crazy.

[siriuslea]

I haven't actually looked at the spot you are talking about but, I will hazard a guess of 4 months. I once looked at South East corner of Queen and Spadina (now Letieri) and they were asking 11K per month.

These rents show why restaurants here come and go so quickly. Unfortuately restaurants have to really increase their prices in general to make the restaurant business less risky.

Siri

[Wine_Dad]

I work there and that place has been under consturction for 16 months. They were recruiting in Jan. My sense is that the founder(s) is/are franchise salespeople and not restauranteurs.

Ki, on the other hand has been under construction for about 4-5 months and looks ready to go next week.

[Wine_Dad]

I thought about this some more over the weekend. In fact the restaurant business is really three businesses: real estate, project management, and food & hospitality. Only with the right location, fitted-out at the right budget can good food and hospitality be in a position to turn a profit. In short, it's a business pure and simple, if the main elements aren't working together, it all falls apart.

Take Peter Oliver for instance, if you ask him the secret of his success he will tell you that real estate is an important element. At Biff's for example (same building as Houstons and suffers the same traffic challenges), he stepped in after a huge remodel and secured a great rental rate and some decent fixturing. Thanks to some creative sponsorships for the Zinc Patina bar and French Bistro Awning, and a couple of coats of paint he went from New England Chowder House to French Bistro in short order and at a rediculously low budget.

This real estate success is not to take away from the fact that the Oliver Bonaccini partnership isn't succesful; it's obscenely succesful. Major landlords will accept a much lower rental rate from a proven brand name restaurant operator in exchange for a participation in the profits. There isn't a landlord in town that wouldn't want a premier restaurant operator or succesful "named" chef in their building.

Houstons isn't locked out because of the rent. Their rental situation is a function of their inability to run a business. The took the least desirable corner of the building that used to be a retail Investment Advisory space resulting in a poor location with huge conversion costs. Combine poor judgement with lack of project management experience and you get locked out before you char your first rib-eye. Their restaurant is a little known, middle of the road steakhouse. To add insult to injury, they've been advertising franchises since well before the first tape measure came out. Ask yourself if the elements of this story support a well run business at the mercy of an unscrupulous landlord or some food loving, franchise salesperson's folly.

The funniest part is that Ki is also in a former Retail Investment Advisory space in a relatively weak corner of a different building but it's being done in 1/10th the time and backed by one of the best restaurant names in the country. Furthermore, the landlord there is far more aggressive. It all comes down to paying attention to all facets of the business.

I can't wait to see who takes over from Houstons. Anyone have Thomas Keller's number handy?

[George W.]

Take Peter Oliver for instance, if you ask him the secret of his success he will tell you that real estate is an important element. At Biff's for example (same building as Houstons and suffers the same traffic challenges), he stepped in after a huge remodel and secured a great rental rate and some decent fixturing.  Thanks to some creative sponsorships for the Zinc Patina bar and French Bistro Awning, and a couple of coats of paint he went from New England Chowder House to French Bistro in short order and at a rediculously low budget.

This real estate success is not to take away from the fact that the Oliver Bonaccini partnership isn't succesful; it's obscenely succesful. Major landlords will accept a much lower rental rate from a proven brand name restaurant operator in exchange for a participation in the profits.  There isn't a landlord in town that wouldn't want a premier restaurant operator or succesful "named" chef in their building.

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Wine_Dad : Thank you for an information packed submission. I was unaware of the financial breaks OB got when they transformed the Boston Club into Biff's (I do like their bar).

Perhaps OB is slightly less "obscenely successul" now that Square has followed Steakfrites and closed.

[mkjr]

I can't wait to see who takes over from Houstons. Anyone have Thomas Keller's number handy?

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We can only wish that TK cared enough about TO - likely not even a blip on his radar. I saw the notice the other day also. Really too bad but as I will say again, I do not think there is enough traffic after 7 to support 2 new restaurants in the area anyway. Jump is the staple lunch in the area and I think the new ones can eat a little into that but I suspect not by much. We shall see.

[George W.]

The locks are off and work is once again going on inside - I assume Houston's paid their rent - or perhaps it's just the Landlord collecting the goods for a garage sale.

[Marlene]

The first reviews of Houston's have not been particulary favourable. However, we are taking clients out for dinner tomorrow who have insisted on going there, so I shall report back!

[Marlene]

It's going to be very dificult for Houston's to get and maintain any business if they don't answer their phone to take reservations. After two days of trying to call them, having them pick up the phone and then hang up without saying anything, we've given up. We're going to Tom Jones instead.

[Megan Blocker]

That is so frustrating, Marlene!

When it comes to Houston's, my recommendation is to stick to the spinach dip, burgers, fries, and coleslaw. I've rarely enjoyed a whole lot else there...

[Worldly]

I don't believe they take lunch reservations. I tried once - perhaps we two were simply not enough to warrant it.

They were ok. I wouldn't go back.

[Marlene]

I was trying for dinner reservations! In the meantime, my husband has been there with clients and he says the same. Ok, but wouldn't rush back,