Newton Centre is losing a key gathering point. Peets is shutting down next week.
I’m no longer a regular there, but if the seats are any indication it remains a popular spot. I was there for a meeting a couple of weeks ago and just about every seat was occupied, often by people talking, not just laptop sitters doing work. The bike rack out front also had a constant flow.
Apparently, this is part of a larger spate of shutdowns. The Chestnut Hill store on Route 9 (which had once been a Starbucks) now sits empty, and the North End Peets is also shutting down. The rumor on the Newton Parents Facebook Page is that Peets was outbid by a bank for the space, but I have no confirmation that a bank is moving in. Wellesley Bank has the spot next door.
I have a personal affinity for this store as it’s where I would take my older son on Saturday mornings when he was 3 or so. We’d sit by the window and watch the cars go by, counting the red cars, the trucks, the cyclists…
It happens that Peets is among the world’s largest coffee companies with a huge presence in the office coffee supply industry. I’ve always been fascinated by their history, as it started out as a small roaster in Berkeley, California. A couple of guys worked there and liked it so much that when they got home to Seattle they opened their own place called Starbucks. That grew and eventually got taken over by another CEO, so they moved back to Berkeley and bought Peets from Alfred Peet, who was ready to retire.
Peets also inspired George Howell, who moved to Boston and discovered that good coffee just didn’t exist here, so he opened his own place in Havard Square. He called it “The Coffee Connection.” A small Newton Centre outpost on Union St. became part of his local retail chain, which then expanded across the street into the old HH Richardson train station adjacent to the Newton Centre T station. Starbucks purchased the Coffee Connection in 1995, taking over the HH Richardson location, and later purchased Seattle’s Best, which had a small store on the corner of Beacon and Centre Street. Starbucks consolidated, giving up the ample seating and unique feel of the train station for the current spot, which allows for an easier “walk away” setup and has few seats.
Howell got into the coffee game again, first opening in Lexington Centre between a Peets and a Starbucks (which also had a restaurant and eventually failed), later focusing on roasting and finally purchasing a small storefront in Newtonville.
After Peets closes Newton Centre will lack a coffee bar with a decent amount of seating, the other sit-down locations in the Centre tend to be restaurants, which don’t encourage lingering conversations or workers sitting by laptop. As a person who started a company in a coffee bar, I believe this is a huge loss.
Definitely don’t need a new bank or realtor there. A co-working space or other driver of foot traffic would be better. Perhaps one of the smaller shops on Langley like Sweet Tomatoes or the noodle shop could move there? We deserve a gathering spot.
Another example of the “Bank-and-salon-ification” of Newton.. a sad trend and not one that makes it a more attractive place to live.
If the rumor of another bank moving in is true, this is very disappointing. Newton Centre could support amenities that are sustained by the community if there was more of an incentive for nearby residents to spend time in the center, rather than just drive and park, then leave. The central parking lot needs to be turned into a park. The Walgreens parking lot should be largely turned over to municipal parking, leaving some spaces for employees. CVS’ parking is all metered, why not the same for Walgreens? If Newton Centre is more pleasant for walking then businesses that are sustained by foot traffic (small grocery, florist, gifts, cafes, etc.) will thrive.
Murrays liquor store in Newton Centre closed a few weeks ago too. For years [make that decades] I’ve been hearing folks bemoan the dearth of things other than banks and nail salons in village retail spaces. Now, thanks to the wisdom of the voters, we have an opportunity to fill a dozen or so empty storefronts around Newton with adult use cannabis stores. These stores would not only contribute to the vibrancy of village centers, they would also generate a lot of revenue for the entire community through a local tax unique to that industry. The problem is, a handful of anti-cannabis elected officials, who possess neither vision nor common sense, are attempting to undermine the 2016 law by banning cannabis stores in Newton. What they are doing is shameful, and it’s hurting the city of Newton.
For those looking for a new coffee spot, I highly recommend L’Aroma Cafe in West Newton.
Hard to compete with starbucks after their new policy. If you need a place to work or meet, you can hang out in starbucks without purchasing anything…
If peets could not survive in the busiest transit hub in Newton then new retail will have to get very creative for the washington street block.
@Bryan,
That’s a great spot for West Newton-ers but does nothing for those that live or work in the Newton Centre area….
@bugek it’s not exactly an apples to apples comparison. If you have a single-story property and retail represents 100% of your revenue, then you need to charge accordingly and manage your costs. A restaurant, for example, will be higher cost for a property owner in terms of buildout and services than a bank.
If your revenue is diversified and relies more on the residential or commercial rents, then you want retail to attract people to a property and you’re likely to make different deals. I visited with a bike shop in Seattle across the street from the Amazon HQ. The owner told me that the property owner wanted a bike shop as an amenity for tenants, so they did a deal to get them in. Bike shop got a better location at a moderate cost (plus moving expenses), the property owner added an amenity to the list in order to attract tenants.
Then there are factors like Starbucks Mobile. As of a year ago, 30% of the company’s transactions came from mobile orders. That is, people not standing in line and filling up the stores. So if you walked into a store it may feel empty with no one at the register, but it could actually be very busy.
Hi everyone-
I have been in touch with Kathryn Ellis (Newton’s Director of Economic Development) to better understand what happened and what is possible going forward- Here is the email she sent me-
“I met the Store manager for Peet’s. The company decided not to renew their lease as this is one of the lowest volume stores in their chain (over 250 stores across the US, rent is $75 per sq. ft.
They cannot afford the rent and with low volume their profit margin is very slim. I was advised from this Store Manager that Peet’s still have another 1.5 year on their lease. Their corporate HQ for Peet’s in California only gave them two weeks’ notice that they would be closing down.
I spoke to the building owner, the Growth companies. I was advised that Peet’s approached them to reduce the rent as they can no longer afford to retain this space. They mentioned it will become a bank and this is a national brand who have been looking to move into the area for a number of years. They are also opening in Watertown Square.
Growth companies also own Murray’s liquors and purchased that store for $2.7 million last year, 3000 sq. ft. so looking to get full market rate for that building too. I have been trying to get a grocery store in here but rent is premium.
I asked whether there was a possibility of Peet’s continuing in the lobby of this bank and Bob advised they had investigated this, Peet’s were not interested but this new bank may be interested.
I have a company who are a pop up coffee entity, so going to connect them both. Also advised this coffee entity of the lay-off of staff members from Peet’s as it’s hard to find a good barista, may be a match.
Peet’s was used for co-working meeting space and general community space for get togethers hence the public responding to this closure.” (End of email)
Vicki, Greg and I have heard from several constituents from Ward 6 and beyond and recognize this is a huge loss for Newton Centre. We are working together to be thoughtful about what we can do as councilors to ensure the vibrancy of our village centers. Please email me with your thoughts and suggestions.- [email protected]
Thanks, Brenda, for the information and thanks to Kathryn Ellis for investigating and providing an informative response.
Can we learn from what other centers are doing? Concord Center is a lovely mix of unique and interesting shops. Dedham center (not Legacy Place) is a delightful mix of shops with a free, ample parking lot – I love shopping there!
Clearly, the solution to the problem is more density, more childless double-high-income millennials who don’t drive please…
There are many great comments here and I especially appreciate Brenda sharing Kathryn Ellis’ response but I think the City itself, specifically zoning is responsible for the closing. After many occasions that my family tried to find a seat at Peet’s, I finally asked the staff why additional seating was not added to fill out more of the empty space. I was told that zoning did not allow Peet’s to utilize the empty space. I believe zoning contributed as well to the “this is one of the lowest volume stores in their chain (over 250 stores across the US, rent is $75 per sq. ft.” It appears to me that zoning had a hand and may be (whether intentionally or not) contributing to Newton becoming a manicurist/dry cleaning/banking/investing haven. The city should investigate putting the city owned parking areas underground and support development which encourages pedestrian use to spring up. One specific example is the larger sidewalks and trees being put up on (at least one side of) Needham Street, as opposed to the *other* side of Needham Street where the sidewalk is 20 year old “temporary” asphalt with no trees and a meandering narrow sidewalk.
I don’t understand the focus on retail, restaurants, and housing. Retail is hurting, restaurants are risky, ( there’s always a “hot, new, trendy restaurant that lasts a year) what about doctors, dentists, legal,etc.? Services like those are needed for aging population, resistant to the Amazon effect, etc. If you look around Newton Center you’ve got that on the second floor of the the building on the corner of Beacon and Centre Streets,, the second floor of the building across from the train station. Perhaps new buildings should skip the big glass first floor retail and go with design for services in the first floor instead.
Not to state the obvious …. When and if zoning reforms happens in Newton, this sort of discussion about landlords and developers will have a forum. At the moment, zoning reform is stalled. Part of the reason for that, with a large 24-person city council, our city is unable to finalize the 10-year-old rezoning process because each councilor has limited influence. And so for all you who voted against Charter Reform to reduce the size of the city council (yes, you were duped by the NO campaign), you are seeing the results – landlords and developers who can make unilateral decisions about the makeup of your neighborhood and your daily life. The only available step is to encourage your city council to push through/vote/advocate for a new zoning ordinance stating a preference for “coffee shops as meeting places” as opposed to national banks. Finally, let’s leave Mayor Fuller of out of this discussion, she was a HUGE supporter of charter reform for the all reason stated in this blog thread.
For the record, Peets is no longer owned and run by a bunch of hippies in Berkeley. It is owned by a privately owned German conglomerate Joh. A. Benckiser (aka JAB Holdings), headquartered in tax haven Luxembourg. JAB Holdings is also owner of Einstein Bagel (which shutdown in Newton Highlands 5-6 years ago) and Panera Bread (which has a franchise store in Newton Centre across square from Peets).
Thomas, merely stating that coffee shops are preferred won’t make a difference if they can’t make money. The new zoning that started as the Washington Street project is going to be city wide, so it’s not stuck anywhere, it’s going through this process with the consultant hired by the mayor.
Of course, I can’t understand why banks have so many offices. Between online banking, photo check deposits, and online business payroll filing ( for my business in Newton Centre) I hardly ever go to either BoA ( personal) or Citizens ( business). Other than using the ATM for occasional cash I can’t recall when I last walked into a bank office…it seems like the offices are just for “advertising”…
If one of the issues is that a single-story building with one commercial tenant doesn’t generate enough rent to make the building lease profitable for the owner then we should be encouraging, through zoning, mixed use development that combines retail and residential. A building can have a retail tenant on the first floor and one or two renters/condo owners on the second and possibly third floors. This would also bring in more tax revenue for the city.
Brenda – a building can have retail on first floor and medical/legal/dental and other services on second floor as well. Brookline and Newton Center have this situation ( I know, I rent an office at 825 Beacon Street. Been there for 20 years.
Rick
I work at Peets. I am sad! I am heartbroken! I am angry!
Please come and support us on our last day Friday, July 13th
Please come say good bye!
New buzz is the owner of the restaurant Central across from Peet’s is considering opening a morning coffee cafe in his restaurant, which is currently pm only. Great idea for Newton Centre!
A few points:
1) Recognize that Peet’s said that this was a low volume/sales store. It isn’t closing because the landlord is a jerk, it is closing primarily because folks didn’t go there and buy coffee to justify expenses, including high rent. If it got enough patrons, even high rent is fine. There is a starbucks in times square. I think the rent there is…high.
2) Recognize that just because we like places to hang out, have meetings and community space when we drink coffee, that isn’t really a corporate priority. And folks hogging chairs for hours while they work on the great american novel don’t drink enough coffee. So good that it was a nice coffee shop for meetings, but that was an added benefit that didn’t translate to sales. Unless, you know, we all went there and drank coffee.
3) Recognize that the city’s insistence of limiting chairs due to parking is self defeating and silly. Fire code issues? Of course. Otherwise, let them sit. If need be, create tiered parking for high use periods.
4) Recognize that our city council and its special permits and zoning drive up costs, add little value in most cases, and basically make life harder for a lot of typical tenants. Newton is known as being a very hard place to set up a business. Not just for developers. For anyone. Bank are easy tenants. That pay top dollar. OF COURSE Landlords are going to prefer them.
5) Recognize that more folks living in our city centers make a difference. More commercial space equals more potential shops. More customers make a difference.
6) Recognize that parking does matter. We need to be creative with the pricing and availability.
7)Recognize that Starbucks had far more to do with Peet’s going down than anything else. That app at Starbucks is damn convenient. And I’ve been in Starbucks plenty of times this year where the crew is working like mad but no one is ordering directly at the store, and folks are streaming in and out picking up coffee they ordered on their phones. Store ambiance only matters so much.
8) Recognize that unless a store has baseline fundamentals and a customer base, nothing else works. Banks come to the scene with money, competence, easy buildout and low regulatory thresholds. Your local restaurant has high risk in terms of people/food/health code/fire code. Landlords might be big corporations in Newton, but even small landlords aren’t charities.
9) For folks who don’t understand why banks need storefronts, think mortgages and lines of credit. Newton is a goldmine for those things. There is a reason why every bank has those products front and center. Do you think they are making a bundle on the free checking?
10) More outdoor seating and better conditions would be great in Newton Center.
Open to other thoughts, but the above is pretty well established in the real estate world…
As I said on another post, the present mix of businesses in our village centers seem to favor those that can withstand online competition, high rents, a volatile regulatory atmosphere, and constantly high demand for limited parking. Not to mention the tens of thousands and everything else it must cost someone just to get to this point. With all that, maybe banks, national chains, and expensive boutiques are all we can hope for. That is, unless we’re willing to pursue changes that I think will be harder to achieve than we realize.