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Deano’s Pizzarama Lives to Bake at Least a Few More Days
Rumors started circulating earlier this week that the longtime Mesa pizza institution, Deano’s Pizzarama, might be forced to close its doors.
Friday was to have been the day of reckoning for the restaurant that’s been a Santa Barbara mainstay for more than 50 years. Management at Deano’s, 1950 Cliff Drive in the Mesa Shopping Center, had expected to know for sure whether the pizzeria could keep its doors open before the weekend. On Friday night, the restaurant was open and packed with customers — and with a line stretching out to the sidewalk.
The threatened closure stems from the restaurant not being able to pay its rent, which Deano’s management says has been rising steadily since the shopping center was remodeled two years ago.
Opened in 1960 under the name “Me-n-Ed’s,” the pizzeria was purchased six years ago by Lou Torres, a friend of the original owner.
“Business has been good, we just can’t pay our rent anymore,” said John Henning, who’s managed the store for 21 years. “We’ve been really busy, everybody just can’t believe it’s closing.”
The only hope for the doors staying open would be a negotiation with Investec, the shopping center’s management company. Investec officials did not respond to Noozhawk’s request for comment.
Henning said the store will know its fate Friday and that the end likely will be a week from Sunday.
“There’s a lot of chatter online about it,” he said. “People are calling from out of town to see if it’s true.”
In fact, a Facebook group called “Help Save Dean-o’s in Santa Barbara” was started and, as of Friday night, had drawn more than 4,600 fans.
Personal stories lamenting the possible closure crammed the group’s message board, including one woman who had her wedding rehearsal at the restaurant and another who met her husband there.
A note from Deano’s management and staff was posted on the page, expressing regrets that they’d soon be closing the doors.
“The community will lose a place where family and friends gather for food, fun and entertainment for over four generations ... Unfortunately, in about six years, the rent has doubled. The recent construction of the Mesa Shopping Center, which took place about a year ago, has also resulted in a loss of revenue along with the current status of our economy have all been contributing factors,” the statement said.
After several failed attempts at a negotiation for lower rent, the staff still believes a reduction could have kept the business going.
“You will be missed, Deano’s will be missed,” the statement read. “It is another part of Santa Barbara history lost in the shuffle of big business.”
— Noozhawk staff writer Lara Cooper can be reached at .(JavaScript must be enabled to view this email address).
Comments
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» on 01.09.10 @ 06:57 AM
Soon we will be living in a country entirely run by large corporations who control every aspect of our lives. That shopping center used to have plenty of mom and pop stores. In our search for everything “cheap” we have contributed to these monsters with NO social conscience. Start by beginning to limit where you put your money. Long live Deano’s!
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» on 01.09.10 @ 07:30 AM
Why not move to another location with lower rent? There are lots of landlords that would love to have a tenant like this!
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» on 01.09.10 @ 08:43 AM
Watching and listening to the out-pour of supporters for Deano’s, we too are saddened by the possibility of the establishment’s closure. Living on the Mesa for years, I think many of us ‘Mesa Locals’ appreciated the face-lift the shopping center sorely needed a year ago…. it was long past due. However, in doing so, rents went up and forced some of our favorite stores to close because Investec felt they then had reason and opportunity to raise. They have forced some of our Mesa stores right out of existence…. Video Visions and now Deanos (am I missing more? Heidi’s Hallmark perhaps?). If you drive by the shopping center, there are store fronts that are vacant and have been for a long time… a long time. Investec, what are you doing? You’ve got to be shooting yourself in the foot with the lost rent that you are no longer acquiring… and for what? Gee, keep the rent reasonable so that the businesses that we Mesa people love (and all of SB for that matter) can STAY in business and make a living AND service the locals. It looks and smells like greed. Hang in there Deano’s, we love you!
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» on 01.09.10 @ 09:58 AM
Trust me my gut tells me the Mesa will see some stupid chain restaurant in that space. No commercial real estate company or developer wants empty space currently they have a back up. Just look to Tuttis in Montecito they are gone and who showed up to pay the higher rent…need i say more
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» on 01.09.10 @ 11:51 AM
How long do you think Foster’s Freeze can hang on? Mesa Cafe? All these businesses are being priced right out of business! Greed, indeed! Heartless pencil pushers! Maybe they should have thought about the viability of the businesses there before that fancy remodel. We miss the video shop and the card shop. I sent 3 teen aged boys to Deano’s for dinner last night and to play games. They had a blast! Where else can they go and blow off steam, I ask????What can we do to stop the insanity? Can anybody HELP?!?!?!
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» on 01.09.10 @ 01:38 PM
This is a travesty! Deano’s is the best pizza around!! We must fight back (think swamping Investec with calls and emails)against the destruction of mom and pop businesses. I heard Foster’s Freeze will be closing as well. I would think Investec would be better served to work with these businesses to keep them operating,and paying rent, rather than sit vacant. Investec is supposed to be a local company, they sure don’t act like it. They should be ASHAMED!!!!
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» on 01.09.10 @ 02:18 PM
Does Investec own the shopping center or are they the property manager?
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» on 01.09.10 @ 02:27 PM
I’m glad to see that people are rallying around this old place. I have so many fond memories I hope they can survive. Let this also serve to locals as a reminder to patronize locally owned businesses when they have the opportunity (Chaucer’s, Vices & Spices, Derf’s and Chicken Ranch come to mind) otherwise we may be facing this same greedy reality with other longtime businesses.
BUY LOCAL.
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» on 01.09.10 @ 02:29 PM
Rather than blaming the landlords exclusively for this, I think we as SB Locals have to also take a look at ourselves.
I know I am guilty of shopping at Chain stores to save a few cents, rather than supporting local businesses. If we all make a pledge to support locally owned businesses that keep their tax dollars here in Santa Barbara, we won’t have to keep killing ourselves to try and save local businesses. The marketplace will keep them alive.
Think before you take out that credit card. Think local first!
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» on 01.09.10 @ 04:41 PM
“Does Investec own the shopping center or are they the property manager?”
Investec is the property manager. Some family trust is the owner.
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» on 01.09.10 @ 06:04 PM
I think the Comm real estate could drop 50% the next three years—Then the selfish R.E groups will pay the price. They are chasing business out of S.B—homes will also drop another 50%—Now you must have a good job—20% dn, and good credit to buy a home—Goleta homes will hit high 200’s-S.B homes 400’s—the days of greed our over…
The liberals allowed—no job-no credit- bad FICA-on welfare-food stamps—you deserve a home—thanks Liberals—Boxer-Fienstein-Frank-Dodd-Reid to blame..
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» on 01.10.10 @ 02:12 PM
Hmmm, seems all this larger financial fiasco was a result of a “conservative” administration policies, not “liberals.”
Back to Deano’s, ... Dear Family Trust of the Mesa Shopping Center, who are you, where do you live, local or out of town, what is your agenda with the shopping center? Are you running this, or have you given this over to Investec and let them run amuck?
Observing your actions, it seems many of the comments above, regarding a conscience of impact on your fellow human beings being some what lacking, to put it mildly, hold good water.
If it is just econ gain at the cold expense of good local folks, doing good local businesses, with good local support, then it is true, your connection to your own fundamental humanity and genuine good business sense has long gone. You HAVE given in to your lessor notions of take, with out any real understanding of honest and straight forward good give and take. This, folks, equals greed. You have let yourself become a pawn of the lust for econ gain at any cost, totally and utterly disconnected from your fundamental social instincts of genuine human dialogue and human relations. This latter recognizes the other as a peer, a person of inherent dignity, value, worth and wholesomeness. A pawn has no control of who they are, what they are about, and where they are going. They are a slave of the master, in this case it is greed lust, and/or power lust, or a combo of both, with no connection to the values of all of our better angeles.
This comment is not intended to shame you, rather it is an offering, a sharing with you of what is actually going on. You might give it some serious consideration and then adjust appropriately.
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» on 01.10.10 @ 03:46 PM
Bummer.
Can we get a new medical marijuana dispensary where Deano’s is?
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» on 01.10.10 @ 03:57 PM
It would be great for local economic sage Jeff Harding to write a future essay on the
(pending) demise of Deano’s.
The twists and turns of the darker side of real estate investor speculation.
Here’s a situation where ” bad government” played no role at all.
A popular family food hang-out was decimated first by drawn-out “remodeling” that
closed off most of its close in parking.
Then it was clobbered by twin “market” factors. Lots of new competition for similar
product (pizza + “Italian” food) in the same part of the Mesa. And by the worst down-turn for eating out since the 1980s (the Bush-Greenspan recession).
Then, just as it was trying to dust itself off, and climb back up off the post-remodel
economic ground, the owners decide to try to recapture all their “upgrade” capital
costs immediately, despite the prevailing state-national economic downturn.
The restaurant gets hit with a 100% lease increase, which Investec’s Mr. Pintard tries
to justify with a straight face.
No matter how established, or how well managed, how can any local business meet
these kind of Investec/SIMA cash flow goals from cosmic rent increases gouged out
of the hides of their longest-term tenants?
This is the local manifestation of free market capitalism’s ugliest side.
No question the shopping plaza’s owners and managers have a right to request any
lease or rent terms they want. It’s there property.
But for those of who try to support “local” businesses over deeper-pocketed national chains, this kind of avarice can be hard to watch. Or in the case of Deano’s
Pizza, to swallow.
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» on 01.10.10 @ 04:04 PM
Bummer. Well times change.
Now can we get a new medical marijuana dispensary where Deano’s is?
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» on 01.10.10 @ 04:17 PM
Nope…it’s the liberals. Sorry, but you can only try to blame the previous administration for so long. Now it’s on liberal hands.
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» on 01.10.10 @ 06:34 PM
“It’s there property.”
Why are THERE so many people who don’t know THEIR own language? Is it because THEY’RE stupid?
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» on 01.10.10 @ 09:16 PM
Investec’s phone is 962-8989. Call them on Monday and say if they don’t renegotiate, you’ll stop shopping at that place. That’s what I’m going to say…and do. Yeah, it’ll be an inconvenience but the power of the pocketbook is the only one we’ve in this matter.
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» on 01.10.10 @ 09:17 PM
To BelAirKnolls:
20 of the last 28 years have been in conservative Republican hands. You might want to start reading a broader range of material. Deano’s demise is about a nice remodel and how to pay for it.
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» on 01.10.10 @ 10:21 PM
Thanks liberals!!!! its your fault again..
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» on 01.11.10 @ 09:58 AM
Investec (owned by Kenny Slaught) is the managment company working for the owners who I believe is the Redding family. They also own multiple properties on State Street.It’s time for all to sit down and work out a reasonable deal to keep this long establish business in place. Come on people, when is enough not enough?
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» on 01.11.10 @ 12:02 PM
It’s very clear that the Mesa has been targeted as the next best place to develop SB. The chi-chi facelift is just the beginning; they’re burying the power lines next. Watch for Milpas to be targeted next, with no concern whatsoever for the small family businesses that will be displaced, with nowhere else to go.
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» on 01.11.10 @ 12:45 PM
January 11, 2010
PRESS RELEASE
INVESTEC – THE TRUE FACTS ABOUT DEANO’S RENT
June 30, 2004 – Lou Torres purchased the Deano’s Pizza business. Today, 5-1/2 years later, his rent, including the cost of reimbursements, has increased a total of 20%, or an average yearly increase of
3.8% per year.
The Mesa Center wants Mr. Torres and Deano’s to continue to be a successful local business at the Mesa Center. We support Mr. Torres’ efforts to improve his operations in the very competitive pizza business during these difficult economic times. However, we disagree with Mr. Torres’ ploy of intentionally misstating the facts regarding his past rent adjustments in an attempt to manipulate the media and cast us in a poor light. Investec supports local business because it is our business.
We are hopeful we can continue to have productive sessions with Mr. Torres regarding his business at the Mesa Center.
Mesa Center Investec
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» on 01.11.10 @ 01:13 PM
I work for a bank- but as an ex pizza worker I have some inside info that all pizza people know. There is a weird magic that makes pizza different which is why moving Deano’s will not work. Ask anyone who works in a pizza place - if you move the ovens, kitchen, etc. -the pizza will be different! I’m not kidding! Besides- Deano’s is also in a great location. Anyway- Giovanni’s on the corner was a jerk move.
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» on 01.11.10 @ 01:21 PM
This guy and all firefighters can also work a full time job owning a business two hour away—I think its time to stop paying firefighters to sleep on the job—8 hour shifts like the rest of us—Hey we now have phones and computers-nextels-etc—No reason to have sleep overs and wasteful overtime—HMMMMM??
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» on 01.11.10 @ 02:27 PM
So once Lou and Deano’s vacates, what would replace it? If Noozhawk’s info is correct, it was originally a Me-n-Ed’s pizzeria. What if the Me-n-Ed’s franchise returns to this space? Is that considered selling-out or could we celebrate its return to the original? If Deano’s has to go, I wouldn’t be grieving for too long if it was replaced by the one of the better pizza franchises. Its location is suited for a business that doesn’t solely rely on window traffic alone (delivery). It has poor street visibility which will make national chains of all types quick to pass on it. The owners are better off keeping its existing use. If Lou was among the original owners, I would feel more nostalgic, but he owns the name- not the history. Unfortunately, I’m sure Lou bought high 5 1/2 years ago and has no bailout options in site. If he bought the business today, I’ll venture to guess that he could have easily tacked on a 20% increase on his menu without any hit to his patronage. So if there’s any die-hard Deano fans able to buy the business, I’m sure you can get it at a financially sustainable price, probably even negotiate the rent down while you’re at it. Mesa locals only need apply.
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» on 01.11.10 @ 03:54 PM
Investec has provided a press release (included in this comment column) which purports to include “True Facts About Deano’s Rent” but the only facts it provides is that Mr. Torres purchased Deano’s in 2004, and that over the past 5.5 years the rent is reported to have increased 20%. Well, here are a few more facts from the Investect “Fund” page on their website: Thanks to this investment company that “cares” about local business and the Mesa Center, they managed to increase Albertson’s rent 221% and manage a 28% return on the center. In their own words from their website http://www.investecre.com/newsletters/InvestecRetailFundII.pdf see below:
Case Study #2: Mesa Shopping Center Santa Barbara, CA
• OPPORTUNITY
Investec acquired the Mesa Shopping Center in August of 1993 for $10 million. The
Center is strategically located within a neighborhood referred to as the “Mesa” in
Santa Barbara. Anchored by Albertson’s and a host of regional and local tenants,
Mesa Center is one of the most visited community centers in all of Santa Barbara.
The Albertson’s anchor lease was set to expire in August, 2005. Investec’s research
indicated that the Albertson’s store yielded the third highest sales per square foot of
the entire Albertson’s chain.
• EXECUTION
Following its acquisition, Investec leased an underutilized pad building to
McDonald’s, effectively doubling its rent while increasing the Center’s traffic and
profile substantially. Investec then managed the property and tenant mix to increase
the NOI of the property by over 27% through 2005, in the process, arranging for
lease terminations sufficient to allow for a demolition of a wing of the center to
accommodate a grocery anchor expansion.
Upon the expiration of the Albertson’s lease, Investec put the anchor out to bid to
competing grocers, allowing for the possibility of demolition and expansion of the
grocery wing. After a spirited bidding match between Albertson’s and Ralph’s,
Investec negotiated a new lease with Albertson’s providing for a 221% increase in
the rent, and the preservation for Investec of the shop space previously slated for
demolition.
In 2008, Mesa Center underwent an $4 million renovation, updating the center’s
architecture, color schemes and selected infrastructure. Albertson’s was obligated
as a part of its new lease to complete a substantial remodel of its entire store as
well.
• EXIT STRATEGY
Mesa Center is currently in Investec’s portfolio and managed by Investec
Management Corp. This asset is currently estimated to deliver a 28%* return on
capital invested for Investec’s investor.
*IRR normalized to reflect market debt assumptions.
Before
After
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» on 01.14.10 @ 09:24 AM
This property is in the portfolio of the “Redken” family to make the rich, richer..they could afford to have every business leave and build condos in 10 yrs. They don’t care. This is happening all over town. So how do you preserve our history, Mom’s, La Paloma, Petersen’s, etc…If you look around there is very little left from 50 yrs ago, Danny’s, Farmer Boys, Petrini’s and ? Unfortunately these real estate trusts want national corporate stores to fill their spaces ($$$$$$$). I for one have quit eating out, I shop at the farmers market,“grow my own bud” and never ever buy anything but gas from a “chain.” If you don’t like whats happening here, take a stand and make a shift away from this trend. At this rate all that will be left is $10hr part time jobs an no benefits, can you live on this? Before you buy, find out who’s “really” getting your money, is it LA, OC, NYC. We can send a message by boycotting this trend. Some will have to move away and Deano’s isn’t Deano’s anymore it’s some dude from south of here. Surf’s up and it’s free!!!!
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» on 01.14.10 @ 05:19 PM
This is just utterly ridiculous. Doubling the rent while Investec sheds crocodile tears for the tenant?
Let’s start public hanging of landlords, one each week, based on the average rent increase they have demanded in the past three years (highest first), until they learn to behave. If the property managers won’t reveal the ownership of the properties they manage, then add the property managers to the hangees.
4th generationsber : I NEVER set foot in the store that took Tutti’s place. Nor should anyone else if they want to stop rule by landlord. It’s not the oil companies you should worry about; it’s the property owners.
And stop with the liberal/conservative crap. It’s the owners, dummies. Find out what the Redken family owns and boycott all their properties.
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» on 01.14.10 @ 06:18 PM
It’s the Redding/Demourkas Family. The patriarch, hairdresser Jheri Redding started Jhirmack, then Redken and finally Nexxus (check it our on Wikipedia). The heirs sold it off a few years ago…Investec is their real estate holdings firm—all their properties are listed on their website.
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» on 01.15.10 @ 06:31 AM
Thanks to all of you who commented for proving what I already knew, the general public knows squat about absolutely nothing.
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» on 01.15.10 @ 08:10 AM
Well, Jed, I hate to tell ya, but “knowing squat about absolutely nothing” means knowing something about everything. Double negative, ya know. English your second language?
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