The multi-national chain Starbucks is relocating to one of downtown Banff’s most prominent locations.
Starbucks has applied for a development permit for a change of use from retail to eating and drinking establishment in space currently occupied by retailers Big Horn Gifts and Viewpoint below Wild Bill’s.
Planning and development officials say they expect to make a decision on the application next week, noting it does not have to go to Municipal Planning Commission because an eating and drinking establishment is a permitted use and there are no variances requested.
“It will be a more prominent space given it’s on the corner of Caribou Street and Banff Avenue, which we think of as a ground zero for the downtown,” said Darren Enns, the Town of Banff’s senior planner.
Starbucks, which currently operates out of 225 Banff Ave., could not be reached for comment before deadline. A notification sign about the proposed change at the new location was posted on site, Tuesday (July 19).
Banff Caribou Properties is the landlord of the downtown building.
Gordon Lozeman, the company’s president and CEO, said the current leases are up at the end of the year, noting the tenants have been greater operators and he’s hoping to find another space for them.
“We’ve had a lot of expressions of interest in the space. It’s a pretty high profile corner so it’s not a big surprise, especially given the upswing in visitation over the past couple of summers,” he said.
Lozeman said from a landlord perspective, it’s about trying to find a concept that is best for the space and the building.
“We really liked the fact that the applicant is committing to changing the entry to be on the corner, and to materially upgrading and enhancing the space,” he said. “We also like the idea of a coffee shop on the corner. It will add a lot of life and animation to the streetscape.”
Lozeman said Caribou is in the final stages of a lease agreement with Starbucks.
“Both parties are acting in good faith, so I’m confident that it will come together,” he said.
The change of use is part of growing trend over the past few years where restaurants, coffee shops and other eateries are replacing retail stores across the Town of Banff and in the downtown core.
Enns said almost all new capital reinvestments in the downtown core in recent years have been flowing to the restaurant industry – Park Distillery, High Rollers, Chucks, Indian Curry House, Cascade Shops Shawarma, Park Avenue Mall Shawarma.
“We’ve seen a lot more transition away from retail downtown and towards more eating and drinking, and that’s probably reflective of market trends pushing in that direction,” he said.
Enns said successful tourism destinations often have a range of offerings for their visitors and certainly having too much of any one offering can increase risk, noting the 2014 economic prosperity study indicated retail, in particular, as a sector in need of rejuvenation.
“Planning and Development believes a comprehensive retail strategy is the best tool to address the Town’s objectives and our current strategic plan proposes that we move forward with a retail strategy in 2018,” he said.
An earlier commercial buildout study contained several recommendations with respect to retail.
They included seeking opportunities to develop additional retail space and retain existing retail space, attract and retain more local serving retail and services, and monitor the number of chain stores.
In 2013, Banff council decided against implementing a quota system on chain stores, essentially putting an end to the 20-year debate at that time. Council did, however, ask administration to monitor the mix of multinational stores and local stores.
“That monitoring has been going for a number of years and will continue,” Enns said.
“It’s been fairly static. When you think of more recent eating and drinking establishments, more recent openings we’ve seen, they’ve all been very locally driven.”
Enns said planning and development is not yet sure what business will move into Starbucks’ existing location, so it’s tough to say whether it will result in a net increase in terms of the number of multinationals in town.
“Arguably the new location will create a lot more visibility for Starbucks, which may influence peoples’ perception,” he said.
