Posted by Leonard Steinberg on February 7th, 2014
Have you noticed the effect that eponymous cafe SARABETH’S is having on certain neighborhoods? It all started on the Upper West Side in 1981, the bastion of ‘family-living’……a cafe/bakery that presented the home cooked and baked experience. The store started out as a bakery and jam shop, where customers could see the jams being cooked in a kettle and ladled into jars. The aroma of fresh baked muffins, pastries, cookies and cakes wafted across Amsterdam Avenue luring customers into the store to savor the goodies emerging fresh baked from the ovens. Sarabeth’s restaurants are now serving savory meals in 9 locations, and their fruit preserves are available in stores around the world.
Other stores have had a similar effect on the surrounding real estate: whenever a Whole Foods opens, that name becomes automatically an important part of a real estate description…..”moments from Whole Foods”. Other stores like Starbucks have had a similar effect on real estate valuations: Knowing how much Starbucks spends on demographic research and trends, one could almost be certain that when they open an outlet in an area, that area is on the rise. They are usually rather early with trending.
So follow Sarabeth’s if you want to know where the next big ‘family-neighborhood’ is established. They usually open just at the exact point the neighborhood has fully gentrified and become a local landmark.
Sarabeth’s is different in that it is not perceived as a massive chain or mega-brand. It feels more localized. When it opened in Carnegie Hill it was an instant success. Their opening in Tribeca triggered instant success too, and Tribeca officially became ‘Downtown’s Carnegie Hill’. Recently they opened up a branch on Park Avenue South in the 20’s, until recently a rather unfashionable real estate location. That has changed, and they are proving to be quite the trendsetters. Numerous residential buildings are popping up all around it and they are becoming part of the tireless broker-babble in real estate descriptions. All of a sudden this Sarabeth’s is getting fancy new neighbors such as Dover Street Market and the SLS Hotel.
Why is this brand so successful? I think its because it adheres to its roots and provides some authenticity: its quality is consistent and the environment pleasant. Nothing revolutionary, but it is always extremely comforting…..just the way a neighborhood bakery and cafe should be!