The survival tactics of cafe denied by the city
Council denies Java Street Cafe's appeal to prevent another store
By Jana Seshadri
After 61/2 years in business, the Java Street Cafe's future may be in danger. Located in the Moffett Plaza Shopping Center, at the intersection of Java and Geneva drives and in the heart of Sunnyvale's industrial hub, the cafe will no longer be the only sandwich place in the area. With a unanimous vote at the April 16 meeting, the Sunnyvale City Council followed staff recommendations and made it possible for another sandwich place to set up shop in the same center.
"We had a verbal agreement with the landlord that he wouldn't bring in another sandwich shop," said Angelo Frangieh, owner of the 6,500 square-foot cafe. "But nothing was in writing."
The Frangieh family owns the cafe and John C. Costello owns the shopping center, which houses the Java Street Cafe and Java Sushi Restaurant, along with a dry-cleaning business, a printing shop and a hair salon. On March 11, with a vote of 4 to 2, the Sunnyvale Planning Commission approved Costello's application for a use permit to allow a third restaurant to be located in the center.
At the April 16 council meeting, Angela Frangieh appealed to the city to "do the right thing" and overturn the planning commission's decision, but the council denied her appeal.
Frangieh urged the council to deny Costello the use permit for a third restaurant in the center.
"The cafe is our livelihood," Angela said. "Now that's at stake."
According to Frangieh, Costello's plan is to let the national sandwich franchise Subway move into the center, which Frangieh said would jeopardize the cafe's business.
"He's trying to run us out of business," Frangieh said.
Jennifer Smith works for Lockheed Martin and has been a frequent customer of the cafe in the past three years.
"A Subway place here will certainly hurt them," Smith said.
Dan Correia, who also works for Lockheed Martin, has a different opinion.
"I barely get out to eat lunch," Correia said. "I usually eat in our own cafeteria."
Lori Mandarich, another employee of Lockheed Martin, said she eats at Java Street Cafe almost every day because of their wide selection and excellent service.
"This is like family here," Mandarich said. "I'll never eat at Subway."
Martin Zak, who speaks for Costello and helps manage the shopping center, said that when they advertised the two vacant spaces in the center, the majority of the responses were from restaurant owners. The few interested offers from non-food-related businesses backed off later, he said.
"We were not particularly looking for a restaurant to come in there," Zak said.
The Subway sandwich shop will occupy a 930 square-foot space with 10 fixed seats, Zak said. The Subway owner knows very well the makeup of the center and what he is getting into, and the owners would like the cafe to continue to do good business in the center, he added.
"If they do poorly, then we will do poorly," Zak said.
Java Sushi started to operate in the center about two months ago.
"I think it will be great to have Subway here," said owner Eunmee Yu.
Shopping and dining centers usually have several restaurants grouped together, Yu noted. Even fast-food restaurants can sometimes be found all in one place.
"If restaurants and eating places are together, then you compete with one another--for better food and service," Yu said.
Diana Tran has owned the hair salon in the center for 10 years--long before the cafe was built. Tran said she barely gets out to eat lunch because that's her peak customer time.
Lunchtime is when the whole shopping center comes alive with activity. With such a limited time period for business, Frangieh worries that competition would only make it that much more difficult for them to survive.
Frangieh and her brother, Simon Siniora, spoke passionately at the council meeting about their cafe, saying the center doesn't really need a third restaurant. All the big companies in their area, like Network Appliance and Lockheed Martin, have their own cafeterias and diners, they said.
"There [are] no ethics in business anymore," Siniora said. "It's about greed."
They showed pictures to council members of the parking lot and the trash bins outside their business. According to a staff report, their parking lot of 129 spaces is about 75 percent full during peak lunch hours and their trash capacity and weekly pickup had to be increased to handle increased business. Staff also found that the site provides adequate parking for a third restaurant with ten fixed seats.
Frangieh disagreed with the staff's assessment.
"When our parking lot is 75 percent full now in tough times, how can we handle it with a third restaurant in the center, when things turn around and we are swamped?" Frangieh asked the council.
The original use permit of 1979 limited the total number of restaurants in the center to one. The condition was subsequently modified in 1980 to allow two restaurants with limited seating capacity. In 1983 another modification was approved by the city to allow expansion of the seating capacity of the second restaurant.
Councilman Tim Risch clarified that use permits could be modified, as this case would require. Risch said he supports the city's land-use policy and would support the council's decision to deny Frangieh's appeal. The motion carried unanimously.
But the decision wasn't an easy one, considering the discussion and clarification that went before it. Council members had many questions for staff about adequate parking and trash issues in the shopping center.
"Sometimes doing the right thing hurts inside," Councilman Manuel Valerio said.
"The property owner has the right to run his business his way," Councilman Jack Walker said. "The council should not be put in the position where it is in the middle of two businesses."
Walker advised both parties to work amiably with each other. Council-woman Pat Vorreiter advised Frangieh to negotiate agreements before setting up any business and put all agreements down in writing.
Sunnyvale, California Since 1994
