Rakesh Arora looks as his Dairy Queen equipment is dismantled
Trendy frozen yogurt shops appear to be taking over failed ice cream or smoothie stores at retail centers and malls — a move embraced by landlords.
Take the situation of Rakesh Arora. The longtime Dairy Queen franchisee in Orange was given 30 days to vacate his space at the Nohl Plaza Shopping Center in Orange on North Tustin Avenue. The Oct. 21 eviction notice left Arora in shock.
Even more insulting – he heard that his Dairy Queen would be replaced by a frozen yogurt store.
“We’ve been thrown out on the road,” said Arora. He maintains he was never late on his monthly $2,000 rent.
So why the boot?
Property manager Delta Tanimoto, of D.W.A. Smith and Co. in Newport Beach, said she could not discuss the reason because of “tenant” confidentiality. However, she gave Arora a glowing review.
“I feel badly for Rakesh, and any center will do well to have him,” Tanimoto said.
She did confirm that his store will be replaced by an independent frozen yogurt shop. That decision was made after Arora was sent his eviction notice, she said.
Arora, 55, doesn’t believe it. In fact, he said he was willing to increase his rent by $600 a month so he could stay put. But the landlord wouldn’t budge, forcing Arora to close his 12-year operation Nov. 22. He spent Thanksgiving week hauling thousands of dollars in ice cream equipment to storage.
Arora is now scouting a new location for his Dairy Queen — a costly proposition. He had no debt with the Orange location. If he launches a new Dairy Queen, he and his wife face up to $150,000 in start-up costs.
“At this time, we are lost,” he said.
My take: While I clearly don’t know all the details of Arora’s situation, one thing is evident: he’s not alone. Retail and mall owners love what’s new and trendy. And, today — in the world of desserts — cupcakes and froyo shops are big draws. Although, I think cupcakes have saturated the market.
Froyo — led by giants such as Pinkberry, Red Mango, Cefiore and Yogurtland — are a hot ticket in Southern California. Many of these trendy frozen yogurts shops are replacing ice cream stores.
Cherry on Top, for example, replaced another shuttered Dairy Queen in Orange on Chapman Avenue. A froyo shop opened in Lake Forest where a Dairy Queen once operated.
Dan Kim, president of Red Mango, said landlords are reacting to consumer demand for healthier indulgences. His froyo chain has replaced several failed dessert shops.
“We’ll get a lot of requests from centers who want to include truly good for you products” in their malls, said Kim. “We’ve replaced five or six Cold Stones, and a few Jamba Juices.”
Tell us: What do you think of Arora’s situation? Fair, or unfair? Write in and let us know.
(Photo by Kevin Sullivan/The Orange County Register)
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These landlords are going to be begging for the Arora types to come back. We’ve seen this movie before. Anyone remeber ‘Penguins’? This yogurt thing is just a fad and soon these strip malls will have empty spaces to fill crying for tenants once again who last.
Maybe it’s karma. My daughter worked at that DQ for a period of time. There is a tip jar on the counter that at the end of the day is emptied into the till, not shared with the employees. According to the owners this is to cover for any errors made by the employees on the register. What goes around comes around rakesh.
This is terrible but what are you supposed to do. Unfortunately the owners can do what they want. There is a Cherry on Top by my house and that place is always packed. Very clean and modern looking. If this is what the people want, so be it.
Wow, I’d much rather visit a DQ than any frozen yogurt place. Frozen yogurt is not that healthy-it’s still full of calories. Why do people seem to percieve it as being healthy?
I don’t think the frozen yogurt places will last, and as a parent I just say no to my kids if they want to go to anyplace like froyo and pay $3-$4 for a little dish of yogurt with some toppings.
You’ll never ever catch me in any frozen yogurt OR cupcake shop!
As a consumer, I like the DQ product and wouldn’t want yogurt as the only choice.
There are usually 2 sides to the story when a tenant is evicted or is not renewed in its lease. In many cases, the store is worn and tired.
The DQ I like in Santa Ana is well run, but needs a remodel and doesn’t look clean at the counter area.
Perhaps DQ can spruce up its image to compete and perhaps offer a yogurt choice.
At the end of the day, I like a DQ cone as much if not more than an expensive yogurt cup, but there is something to say about presentation.
Can only speak for the Lake Forest DQ location but out with the old and in with the new. This location isnt known for cleanliness and some of the hired help werent exactly known for being on the ball. Everything goes full circle so today it may be yogurt, tomorow cinnamon rollls, back to ice cream, and then smoothies.
I worked for several years with Rakesh and his wife, Netu, prior to their DQ ownership. I was happy for them when they made the jump into owning their own business. I am saddened to see this happen to them. I knew them to be both honest and very hard workers. I hope all goes well for them, and who knows maybe this will lead to a better situation for them, even though it sucks now.
Eric,
If what you say is true, tips are covered by California Labor Law and are not the property of the owner. If this was a long standing practice, and you know of other employees affected, I would contact an employee-law attorney immediatedly.