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About two years ago, Gregorys Coffee decided to venture out of the city to open suburban locations. At that point, the small Manhattan-based chain's shops were mostly among office buildings whose caffeine-craving business professionals were the bulk of the customers.
Opening its first Long Island coffee shops this year - in Deer Park and Melville - was eye opening, Gregorys Coffee founder Greg Zamfotis said.
Not only are sales at the Long Island stores 25% higher than projected but also the Melville shop is the bestselling of the chain's 33 shops, due in part to many New York City customers who have not returned to working in their offices because of the COVID-19 pandemic, he said.
"I think, on Long Island, people live and work there. And there's a much more robust residential community," said Zamfotis, who is in lease negotiations to open four more Gregorys Coffee shops on Long Island within the next 18 months.
Long Island's high taxes and rent are barriers to entry for many businesses, but its demographics - high-income consumers willing to spend money at restaurants - are boding well these days for both coffee shops and casual chicken restaurants, both of which are springing up in high numbers in the area, real estate and restaurant experts said.
"But typically, when retailers come into the market, their sales are very strong. So, they're able to justify the higher rent and higher taxes," said Russel Helbling, a principal at Sabre Real Estate Advisors in Garden City who is the exclusive broker for Starbucks and PDQ chicken restaurants...