When Colliers Urban Division in Jacksonville announced Feb. 12 that Starbucks Coffee Co. will return to Downtown in a space in the Bank of America Tower, it was news to the owners of Akel’s Deli and Ground Level Coffee, which operate in the lobby area of the building at 50 Laura St.
The owners and operators of the family businesses say they still have two years remaining on the Ground Level lease and have no plans to leave despite the planned presence of the coffee giant.
“We’re not planning on closing (the coffee shop). Oh, I’m not going anywhere,” said Jonathan Bateh, co-owner of Akel’s Deli. His sister, Christie Bateh Blackburn, owns Ground Level.
Bateh, Bateh Blackburn and their brother, Matthew, who co-owns Akel’s, learned about the plans for a Starbucks via a Feb. 12 Instagram post from Colliers Urban Division.
It was subsequently reported by local media outlets.
“The article in the (Jacksonville) Business Journal says the coffee shop in the building is likely to close. That’s news to us,” Jonathan Bateh said.
Starbucks returns
The Starbucks will be the chain’s first Downtown since the two previous shops closed in 2008 at 11 E. Forsyth St. and in 2011 in the since-demolished Jacksonville Landing.
“The addition of Starbucks to the Laura Street corridor is important to the pedestrian experience,” the post read. “Not only does it offer another option for downtown office users but it’s an established brand that is universally recognized by locals and people visiting our downtown.”
Starbucks will be taking 2,364 square feet of space at the corner of Laura and Bay streets that at one time had been a gift shop.
It is adjacent to Ground Level. Two large windows will be removed to make a street-accessible Starbucks entrance.
In 2020, Group RMC purchased the tower. CBRE was hired to manage and rent the building. Bill Davis of CBRE is the general manager. Oliver Barakat represents Group RMC for leasing office space.
Colliers’ Matthew Clark, senior director and head of Colliers Urban Division, handles commercial real estate in the building’s lobby.
Starbucks will not only serve coffee but will be a nationally known entity in the Downtown office district.
“Starbucks is something that’s going to activate the street and bring awareness to people working Downtown and visiting Downtown. Ultimately Starbucks is a brand that is universally recognized and helps us bring validity to what we’re trying to do on Laura Street,” Clark said.
Akel’s facing closure
News of direct coffee competition comes as the Bateh brothers are facing closing Akel’s in the 42-floor tower when its lease expires April 30.
“On May 1, the two of us will be unemployed,” Jonathan Bateh said.
They first approached Colliers for a new lease two years ago, they said, but could get nothing in writing.
Colliers asked them last spring to submit a business plan for another food concept for the space. As of yet, Clark said he has not received anything from the Batehs.
Group RMC wants the space to evolve into an upscale urban deli serving lunch and dinner, Clark said.
“And I would like to see them (the Batehs) have an opportunity to stay there,” Clark said.
“I’d like to make it into more like this really cool New York deli.”
Clark said he asked for a vision board of what would be needed to achieve that goal.
Currently, Akel’s pays $500 a month as base rent and 4% of the monthly gross.
Colliers told the Batehs a new lease would be $30 to $35 per square foot.
The Colliers lease quote includes expanding the dining area, installing a kitchen hood and a grease trap and redesigning the restaurant, Clark said.
The Daily Record reported in 2015 when Akel’s was preparing to move into Bank of America Tower the cafe area was 2,111 square feet. That would make the lease cost $63,330 to $73,885 per year, or $5,277 to $6,157 a month.
“That’s 10 times our current costs,” Jonathan Bateh said. “Even at five times the cost it wouldn’t be a viable business.”
The Akel’s Deli business model is sandwiches, pitas, salads, soup and chips. It is open 7 a.m. to 3 p.m. Monday through Friday for breakfast and lunch. It has a built-in clientele with office workers in the building.
There are other coffee shops within a few blocks of the Bank of America Tower: Urban Grind Coffee Co. at 45 W. Bay St.; Chamblin’s Uptown at 215 N. Laura St.; Setlan Coffee Co. on the ground floor of the Museum of Contemporary Art Jacksonville, 333 N. Laura St.; and the St. James Cafe on the ground floor of City Hall, 117 W. Duval St.
Clark suggested two coffee shops could survive in the Bank of America space.
“I think that people will always like a local coffee shop, right? Not everybody enjoys Starbucks coffee,” Clark said.
“So I think as the population of Downtown grows, with Gateway coming online and the University of Florida campus coming online, and hopefully new businesses coming to Downtown, people are going to want choices, and I don’t think that there’s anything wrong with that.”
Gateway Jax is developing Pearl Square in the NorthCore area of Downtown. The planned UF campus is in LaVilla in and around the Prime F. Osborn III Convention Center.
Ground Level is seen as a building amenity and does not have an exclusive right to sell coffee there, Clark said.
Bateh family history
The Bateh family has operated restaurants in Jacksonville for many years.
Their grandfather, Mousa, had a small store near Treaty Oak on the Downtown Southbank. Their father, Johnny, ran a Springfield pharmacy.
Their cousin, Marwan Akel, started the Akel’s Deli concept on Long Island, New York, in the late 1970s and moved it to Jacksonville in the 1990s.
Akel’s Deli has been a presence in Downtown from the start. The family operated one in the former JEA building on Church Street as well as the location now home to Indulgence Southern Bistro on Forsyth Street.
The brothers bought the Bank of America location from Akel.
Two years later, Bateh Blackburn opened Ground Level. It sells pastries, beverages and coffee products. It uses Bold Bean Coffee, a Jacksonville-based company.
Since Group RMC bought the building in 2020, the brothers have had complaints with building management. Hard rains result in leaks in both businesses.
The one in Akel’s splashes water in the dining area, they said. The lobby leak pours water on the cafe’s espresso machine.
Jonathan Bateh said they’ve registered complaints, but there have been no permanent fixes.
News ‘leaked’
The Batehs and their father, a guarantor on the lease, had a short and contentious meeting with Davis on Feb. 12 after Bateh Blackburn received an email apologizing for how the announcement was handled.
The email read:
“This is not how we would have liked to break this news to you. The deal with Starbucks was finalized yesterday at the end of the day. You are on my list of calls to make today, however it appears someone leaked the news before I got the chance to contact you. To confirm, Starbucks will be moving into a space on the lobby level. I am available to discuss with you most of the day tomorrow if you’d like to meet.”
Neither Davis nor representatives of Group RMC have returned email or phone calls for comment.
The Batehs would like to find another Downtown location for the deli. Most spaces are too large or unsuitable for a deli operation.
They’d prefer to operate in an office building, which would provide a customer base. Some Akel’s Deli locations have paid no rent because building owners wanted a restaurant for tenants.
“We love rainy days. Those are the busiest,” Jonathan Bateh said.