Atlanta Bread in Lee's Summit Loses Lease
12.25.09
Atlanta Bread Loses Lease
By Tribune Staff
Robert Riekhof, owner of Atlanta Bread Co, wishes to thank everyone for their dedicated support over the years.
Tribune Photo/Fred Poese
The Atlanta Bread Company, a locally owned franchise, has been notified that their lease will not be renewed. The restaurant located at 1686 NW Chipman Road, in front of Summit Woods Shopping Center, will close on or before January 10, 2010. “The notification was unexpected”, stated owner Robert Riekhof, “I don’t yet know if we will be able to re-open in another location.”
In an industry known for it’s high turnover rates, Atlanta Bread still employ’s many of it’s original team members after six years. “The dedication of the staff that I have had the honor to work with has been unlike any I have experienced in all of my 20+ years in management. The work ethic is truly indicative of the Lee’s Summit community and the Show-Me state”, said Riekhof.
Riekhof has been a loyal support to the Lee’s Summit community, always willing to help a cause, donating food and support. In turn that loyalty is returned by his customer base. “As far as our customers go, I cannot say enough. Thank You Lee’s Summit! When you have customers that actually visit the store every single day, you have a unique opportunity in this service business to really create relationships. It’s really like family! I do hope that we will have the opportunity to serve as many of our regular guests as possible before we have to close the doors, “Riekhof continued.
Atlanta Bread discontinued selling Gift Cards immediately upon notification of the lease cancellation, but there are many outstanding. The “White” Gift cards may only be used
at the Lee’s Summit restaurant within the next few weeks. Any “Green Dough” gift cards may continue to be used at any location nationwide.
Steve Caffey with Block & Co states that the Altanta Bread closing date is still being finalized and when finalized Panera Bread will take occupancy.
Vice President of Panera Bread, Eric Cole, states they will take occupancy around January 8 or 10th depending on the finalization. They will be closed for remodeling and are planning a April opening.
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However, Block's actions were entirely rational. Atlanta Bread Company is a smaller (100 stores) chain that has been struggling. The franchisor, as I understand it, already lost one store in the district. The long term ability of ABC to pay rent could reasonably be called into question. Panera, on the other hand, is a profitable corporation (not franchised) with 1300 stores nationwide. They have the ability to pay rent, even when times are tough.
I don't think it's fair to throw the word "greed" around when a for-profit business makes a decision that is in its financial best interest. In fact, a corporation has a fiduciary obligation to its stockholders to make money. Imagine owning stock in a company and having diminishing stock value and no distributions. Then imagine being told the reason why your 401k fell is that the company decided to lose money in the name of "the community" or "small business".
If you choose to Boycott Panera, I understand. I'm sad and upset for ABC's franchisor and employees as well. But IMO, it's better for ANY business to thrive in that shopping center than to intentionally force it out of business. Just my 2 cents though...