» Starbucks means higher rent?
Shop rents could shoot up in St James’s Street because of the new Starbucks, the city centre manager has warned.
Soozie Campbell said the presence of a major coffee retailer in the popular Kemp Town street could push higher charges on existing and future stores.
There are already five Starbucks in Brighton and Hove. The company was refused permission to open a shop on St James’s street by the city council’s planning department last week after more than 500 people sent letters of objection. But the American firm opened the store on Saturday anyway as it is legally entitled to until the outcome of its appeal to the Planning Inspectorate.
Large chains such as Starbucks and Costa have a tendency to agree to pay an inflated rental price proposed by a landlord if they are keen to secure a property. This means when other shops’ rents come up for review their landlords, even if they rent from the council, look to the last price paid on the street and fall in line. This can mean hiking up prices to an unaffordable level for a smaller retailer.
The planning committee ruled Starbucks could not open in the former Sussex Stationers because there could not be more than 15 metres breakage of retail use. Ms Campbell said chains were prepared to pay high prices because there was so much competition between them. “They’re fighting each other to take over the city. They’ll pay whatever it takes and prices will only go up. Rents could double.“
Ms Campbell, who champions the city’s independent shops with Unique Brighton, said it was predicted by 2020 independent retailers could be obliterated nationwide.
A Starbucks spokeswoman said: “We pay local market rates and we’re sensitive to the communities where we introduce the Starbucks Experience. We are also committed to finding ways that we can positively contribute to life in those areas.”
