Rent hikes, bad location end caf 's 5-year streak
- Source: Global Times
- [08:56 April 06 2011]
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By Xu Tianran
A rent hike and a less-than-ideal location have spelled the end of Caf Europa, which will close tomorrow.
"Caf Europa stayed there for five years with good food and one of the most interesting wine lists in Beijing," said bar and restaurant blogger Jim Boyce.
Owner Joseph Kiang signed a contract to rent the restaurant in west Jianwai SOHO's building 11 with the landlord, surnamed Zhao, in November 2006. Kiang agreed to a monthly rent of 65,000 yuan ($9,934.66) and that the landlord was entitled to an annual 4 percent raise in rent.
But after the 2008 financial crisis, revenue dipped by 40 percent, Kiang said, so Zhao agreed to lower the rent to 55,000 yuan per month starting from October 2008.
In March, Zhao decided to revert to the original terms of the contract, raising the rent to over 70,000 yuan, Kiang said. The landlord could not be reached for comment Tuesday.
A lack of traffic through the area was also a problem for the caf .
"The stores and restaurants around us come and go about every six months," Kiang noted.
"The employees of big companies are all on the east side," said a boss at Jiahe Fastfood surnamed Ma in the neighboring building 10.
Kiang said he does not have plans to reopen in the immediate future.
