Rapid Casual Dining Expands in Midtown
Midtown is seeing a surge of casual dining spots, revitalizing previously vacant storefronts. This trend includes well-known names like Pret a Manger and Sweetgreen, along with newcomers such as Farmer J, which is set to open its first U.S. location at 40 W. 53rd St. This UK-based health-focused chain already operates 11 sites in London.
Another interesting arrival is The Polo Campello, referred to as “Guatemala Chick Phil A,” which opened its doors last year at 966 Sixth Avenue and 714 Lexington Avenue. James Famararo, a broker involved in its lease, also helped introduce Springbone Kitchen, specializing in bone broth, to 25 E. 51st St.
Real estate professionals link this boom to the increase in five-day office work weeks for many employees. Patrick A. Smith, Vice Chairman of Retail Brokerage at JLL, remarked, “We are pleased to announce that we are a great place to go.” He noted that lunch is the primary meal during workdays, emphasizing the importance of a consistent work schedule for the casual food sector.
Famararo commented on the significant shift, stating, “The big story is that people are back in their offices.” Many had doubted whether employees would return full-time, and this uncertainty posed challenges when showcasing Midtown spaces.
Henry Roginyol of CBRE, who worked on leasing Joe & The Juice at 1195 Sixth Ave., pointed to data from delivery services like Uber Eats and DoorDash as vital in gaining operator confidence. The latest Joe location sits near Naya, a popular Middle Eastern chain that consistently attracts customers.
Steven Soutenidjk from Cushman & Wakefield mentioned that Carrot Express, which he represented in a lease at 600 Lexington Ave., thrives at its corner location. Due to the rapid spread of casual dining spots, he remarked, “there is no more space available between Lexington and Seventh Avenue.”
Some new establishments are taking over long-vacant spaces. For example, a bagel shop named Scoop is set to launch at 7 E. 53rd St., which has been empty for quite some time.
On the scene, a Taiwanese restaurant called Yampulling is opening at 16 E. 52nd St. The British coffee and snack chain Watchhouse has secured a lease in the Chrysler Building, following its success at 660 Fifth Avenue. Additionally, Bagiza, a hybrid pizza and bagel shop, is set to open at 424 Madison Avenue.
Regarding rent, it varies significantly by location, though most brokers suggest a range of $150 to $300 per square foot in midtown. After a prolonged challenging period for the retail space market, landlords are enthusiastic about how fast casual dining is reviving interest in their properties.
“The tide is finally changing,” Famararo noted, adding that overstock items are now gradually disappearing each week.
