Hobee’s Town and Country location will be closing due to an increase in rent and a required facility remodel, that Hobee’s is unwilling to undertake. The restaurant reports that its estimated closing date is Jan. 5, 2013.
If Hobee’s were to renovate their building, the owners would have to close their Town and Country location for an unknown amount of time. Hobee’s owners believe that it would not be financially beneficial to do so, and have therefore decided not to pay for the renovation.
While Hobee’s Town and Country location is closing, the company will continue to operate at eight other locations throughout Silicon Valley. All of the employees currently working at Hobee’s Town and Country will have the opportunity to transfer to a different location.
Hobee’s has been at Town and Country for 28 years, and its owners state on their website that they are very sad to see their business leave.However, they hope that they will be able to reopen their business in another location in Silicon Valley.
“The easiest and most cost effective way [to open a new Hobee’s], is by taking over another restaurant,” Hobee’s President Edward Fike said. “There are lots of opportunities. Many restaurants our closing down due to the economy.”
Town and Country is an ideal location for Hobee’s because many people know about the spot and it is close to Paly.
Hobee’s is a common place for Paly kids to order out from, and while not many students have a sit down lunch, they still produce a significant amount of revenue for the company.
“It is always great to have Paly kids,” Fike said. “[Hobee’s loves] Paly kids. People have grown up on Hobee’s.”
Hobee’s, known for its world famous coffee cake, will be missed by many patrons who will have to visit another Hobee’s. While the restaurant will be missed, Hobee’s would not be able to stay with their current business model.
“[Town and Country] needs tenants who can pay big rent.” Fike said. “Hobee’s doesn’t make enough money to pay the big rent and keep family friendly prices.”