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Laris Venues in Sinan Mansion "Closed Until Further Notice"
By Mar 25, 2013 Dining
Yucca, 12 Chairs, The Fat Olive and The Funky Chicken, four venues associated with popular Australian restaurant consultant David Laris, have shut their doors "until further notice."

If you guessed that this has something to do with unsustainable rent-to-revenue ratios, you would be correct. Apparently, the original plan was to shut down. Full stop. However, The King's Kitchen, parent company to all four venues in the building, is returning to the table in an attempt renegotiate the terms of their lease.

According to Laris, all four venues will remain closed "while we try and work out a solution and ensure we look after the 60 odd families and individuals this business provides for."

Recent trends at the Sinan Mansions indicate that this might not be a promising prospect. Since last fall, three high-profile venues -- Chicha, The Alchemist and The Public (formerly Apothecary) -- have shut down in rapid succession, each one citing the same reasons.

Laris has given no indication of when -- or, for that matter, if -- the four venues will resume business but says, "Hopefully, we will have a positive conclusion."

10 comments.

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  • kurtbraybrook

    Where's Rob R to tell us that "we are wrong" Justin? and that venues fail because they are "stupid"

  • Justin Fischer

    Hey. My name's Paul, and this is between y'all.

  • rob.r

    Kurt! My friend! I'm right here!

    You and every one else who is dying at Sinan Mansion can say it was the high rent that "forced" them to close but that's just sugar coating the inconvenient facts and pushing the blame on to a third party. It's flawed planning, poor execution, not enough customers, paying enough.

  • kurtbraybrook

    ummmm yeah I never opened any restaurant here. Cuz...well the rent to revenue ratio is....well not doable.

    You sound like a bitter Betty or somebody ready to launch a restaurant.

  • riederalp

    Kurt. There are so many restaurants here that have been open for ages and that are doing well despite very high rent. Any Element Fresh, any Wagas, Bar Rouge (rent > 1million rmb per month), a trillion local restaurants ...

    Saying it's not possible to run a restaurant profitably because the rent to revenue ratio is "not doable" is not correct, the situation is not as black and white as you say.

    What's true is that the rent to revenue ratio is not doable in some locations. Sinan Mansions is one of them. They charge Xintiandi rent prices but have 1/100 of that traffic. And this comes down to what Rob is saying: Opening a restaurant in a place with such a high rent and such a low traffic is a bad management decision. It's not the landlords fault for charging that much, it's the tenants faults who are willing to pay the rent in the first place.

  • must

    To be fair,, most of the venues that have closed so far signed their lease agreements and started building before Sinan Mansions actually opened to the public. SM probably promised Xintiandi numbers for traffic then failed to deliver.
    However, the rent to revenue ration is always gonna suck when you have a venue that's always EMPTY! Boxing Cat seems to be doing ok...

  • kurtbraybrook

    Pretty simple equation. RENT TOO HIGH=VENUE BYE BYE. can you list 15 venues that have lasted more that 15 years? nope. Chinese F&B doesn't count cuz everyone knows their's the local price and the foreigner price...so don't go there.

    Watch how the next few months bring a rather large market correction to the "scene"

    factual observation my friends, factual observation.

  • Sashas Shanghai

    Sashas
    Judys
    Malone`s
    M o t Bund
    Long Bar
    Cotton Club

    that`s 6 without even going through the thats shanghai mag

  • handoogies

    You all failed to mention that it is in fact these restaurants who are fucking over the developers. When they signed on, they had 2 years of near rent free operation, with the explicit understanding that the rent will be this amount after 2 years. Every venue made at least back their initial investment in renovation, and some. Now god forbid they should have to pay rent, and leave in droves. Shameful really.

    Guys with more business class like Boxing Cat and Shanghai Slims on the other hand, have chosen to honor the initial agreement and try to weather the new rent burden, but with all these cowards closing up shop it is only further hurting those who chose to stay. The restaurant owners in this case are 100% the crooks.

  • kurtbraybrook

    sorry Sasha...the only surviving venue is Malones' at its orginal location. Judy's moves like a street hooker so that don't count..Sashas hasnt been there 15 years I know...M on the bund either...or Long bar doesn't count they moved and cotton club has been so that's two...without looking thru that's.... 15 years, 15 orignal locations. 2 you've named. The point is the rents too high and always has been.

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