Sip & Sonder has closed down.

[hardcorestitch]

The Black-owned coffee shop at Parkside Market in Downtown Disney has closed its doors just months after opening in January. A generic brand took over the former coffee space. It is not known if the new coffee shop that replaced Sip & Sonder is run by Disney (you could easily tell just by them serving Joffrey’s). This is a crushing blow to the Black community.

 

[maleficent55]

The Black-owned coffee shop at Parkside Market in Downtown Disney has closed its doors just months after opening in January. A generic brand took over the former coffee space. It is not known if the new coffee shop that replaced Sip & Sonder is run by Disney (you could easily tell just by them serving Joffrey’s). This is a crushing blow to the Black community.

I wonder what the reason for closing is?

 

[Chili327]

I wonder what the reason for closing is?

Rent is probably ridiculous. And if people don’t love the coffee (or at least the vibe), it would be tough to stay afloat.

 

[LKing]

Quality and service were mentioned as concerns in several of the reviews.

They have two other locations that are still open. https://www.sipandsonder.com/locations

 

[disneychrista]

It is tough to have a business in Downtown Disney. Rent is ridiculously expensive plus from what I understand they also require you pay a % of your sales.

 

[hardcorestitch]

It is tough to have a business in Downtown Disney. Rent is ridiculously expensive plus from what I understand they also require you pay a % of your sales.

If I were CEO of Disney Experiences right now… that would change. Especially for small businesses like this.

 

[LKing]

It is tough to have a business in Downtown Disney. Rent is ridiculously expensive plus from what I understand they also require you pay a % of your sales.

Are you referring to common area charges or "triple net"? It is pretty common in areas where there are multiple tenants (ex. malls). I have a triple net lease for my business.

 

[disneychrista]

Are you referring to common area charges or "triple net"? It is pretty common in areas where there are multiple tenants (ex. malls). I have a triple net lease for my business.

No I am not talking about triple net charges. I saw something awhile back that leases include a clause about revenue sharing, where the tenant pays (for example) 5% of their revenue to Disney on top of rent which includes triple net charges.

 

[LKing]

No I am not talking about triple net charges. I saw something awhile back that leases include a clause about revenue sharing, where the tenant pays (for example) 5% of their revenue to Disney on top of rent which includes triple net charges.

Can you find where you read that? I asked ChatGPT to do a search and nothing came up. It did find a "base rent plus percentage rent" structure for Build-a-Bear. According to Build-a-Bear, that is the lease agreement at a majority of their locations.

 

[disneychrista]

Can you find where you read that? I asked ChatGPT to do a search and nothing came up. It did find a "base rent plus percentage rent" structure for Build-a-Bear. According to Build-a-Bear, that is the lease agreement at a majority of their locations.

I will see if I can find where I saw it.

 

[cruisehopeful]

Can you find where you read that? I asked ChatGPT to do a search and nothing came up. It did find a "base rent plus percentage rent" structure for Build-a-Bear. According to Build-a-Bear, that is the lease agreement at a majority of their locations.

This is what my AI said (doesn't mean it's accurate). I asked if Downtown Disney merchants had to pay a percentage of sales to Disney.
"Yes, downtown merchants have to pay a percentage to Disney. The Downtown Disney District is a Disney-owned and operated property, and any third-party merchant operating within the district must have a lease or licensing agreement with Disney that includes payments, which typically involve a percentage of gross revenue.

• Payment structure:
  The specific percentage is determined by the agreement between Disney and the individual merchant. These agreements usually include a combination of a base rent and a percentage of the merchant's sales.
  
  
• Lease agreements:
  As a Disney-owned property, all businesses in the district, whether operated by Disney or a third party, are subject to Disney's terms and have a contractual relationship that would require them to pay a percentage of sales or revenue to Disney.
  
  
• Distinction from park admission:
  It is important to note that the Downtown Disney District is an open-air complex and does not require a park ticket for entry. However, merchants operating within the district are still bound by the commercial agreements they have with Disney, which include percentage-based payments. "

 

[LKing]

This is what my AI said (doesn't mean it's accurate). I asked if Downtown Disney merchants had to pay a percentage of sales to Disney.

Thanks! Can you ask if the % they pay is on top of triple net (NNN)?

 

[cruisehopeful]

Thanks! Can you ask if the % they pay is on top of triple net (NNN)?

Yes, it is standard practice for merchants in large retail and entertainment complexes like Downtown Disney to pay percentage rent in addition to a triple net (NNN) lease. The percentage rent is based on a portion of the merchant's gross sales, on top of their fixed base rent and other expenses. [1, 2, 3]
Here is a breakdown of how the rental structure for Downtown Disney merchants works:

• Triple net (NNN) lease: Under an NNN lease, the tenant pays for the base rent plus a proportional share of three "nets" or operating expenses. This includes:

• Property taxes
• Building insurance
• Common Area Maintenance (CAM), which covers the cost of maintaining shared spaces like walkways, landscaping, and parking lots.

• Percentage rent: This is a variable form of rent paid to the landlord (in this case, Disney). It is a percentage of a merchant's gross sales that is triggered when sales exceed a certain threshold, or "breakpoint".

• For successful tenants in high-traffic retail areas like Downtown Disney, this structure allows the landlord to share in the tenant's financial success.
• It also incentivizes the landlord to maintain a high-quality environment that attracts visitors and boosts sales for the merchants. [1, 2, 4, 5, 6]

Therefore, merchants at Downtown Disney pay a compound rental fee that includes a fixed portion from the triple net lease and a variable portion based on their sales performance.

AI responses may include mistakes.

[1] https://www.commercialrealestate.loans/commercial-real-estate-glossary/percentage-lease/
[2] https://www.realogicinc.com/percentage-rent-in-commercial-real-estate/
[3] https://forums.wdwmagic.com/threads/renting-space-at-downtown-disney.75763/
[4] https://www.law.cornell.edu/wex/triple_net_lease
[5] https://www.kiplinger.com/personal-finance/what-is-a-triple-net-lease
[6] https://www.investopedia.com/terms/
p/percentage-lease.asp

 

[LKing]

Yes, it is standard practice for merchants in large retail and entertainment complexes like Downtown Disney to pay percentage rent in addition to a triple net (NNN) lease. The percentage rent is based on a portion of the merchant's gross sales, on top of their fixed base rent and other expenses. [1, 2, 3]

Thank you!