entrepreneurship : Development News

Temple film school grad Dan Creskoff might be best known for his eighteen-year stint as a manager of two TLA Video locations.

"People would come to TLA and hang out for an hour," he recalls, "and just talk about movies."

Creskoff came to cherish the relationships he formed there.

It wasn’t long after the closing of TLA's brick-and-mortar stores that the cinefile began running into some of his old customers around town. The resulting conversations made Creskoff realize that there was a need for that sort of shared space. With that in mind, he began working on his new business, CineMug.

CineMug, a cafe that will also contain a DVD rental shop and function as quasi-clubhouse for film lovers, is due to open at 1607 S. Broad Street sometime later this fall. The roughly 800-square-foot cafe -- formerly a wireless phone shop turned doctor’s office -- will operate seven days a week. CineMug will also host weekly movie screenings.

Buildout is nearly complete. Creskoff describes the space as "having that living room vibe of hanging out with people you like and talking about things that interest you." Custom reclaimed wood countertops will give the cafe a casual and inviting feel, he adds.

In addition to a carefully curated collection of DVDs that will also be available for online and mobile perusing -- think must-see classics, cult films, documentaries, and plenty of arthouse and indie features -- CineMug will be serving up Fishtown’s ReAnimator Coffee alongside its own housemade chai and iced tea.

Cafe staples like bagels, spreads, pastries and baked goods will also be available, and the full CineMug menu will feature signature dips and sandwiches from South Philly favorite Cosmi's Deli.

Writer: Dan Eldridge
Source: Dan Creskoff, CineMug 
 

As executive director of The Merchants Fund (TMF), a local nonprofit that provides assistance to business owners facing financial hardship, Patricia Blakely is one of a handful of peer reviewers who sit on the judging committee of the Storefront Challenge, a retail design competition that recognizes storefront façade improvement projects throughout the city.

"Your façade is the single most important advertising expense you will ever [absorb] for your company," Blakley explains, echoing the advice she gives to business owners. "It [either] says, 'Come in,' or 'Go away.' A ratty, ugly front window with lots of signs pasted in it and no lighting just doesn't say, 'Come in and spend money with me.'"
 
And that's the Storefront Challenge in a nutshell. The competition, which happens once every two years, is a joint program of the Philadelphia Commerce Department and the Community Design Collaborative.

Although its larger purpose involves local economic development via the beautification of retail spaces, the event was initially launched as an effort to bring wider attention to the Commerce Department's Storefront Improvement Program (SIP), which provides cash grants to help business owners improve their facades.
 
Storefront Challenge winners are chosen via a nomination process, and the rules couldn't be simpler: Through Monday, September 15, anyone can nominate a renovated Philadelphia storefront that was completed between October 2012 and November 2014.

And as Blakely points out, thanks to the Challenge's seven separate categories (Creative Sign; Window Display, etc.), even simple, low-cost improvement projects have a chance to win.

"Literally, paint can be transformative," she explains. "[As] can a simple sign, [or] a great awning with some lighting."
 
The winning façades will be recognized during a special Design Philadelphia event at the Center for Architecture (1 - 3 p.m. Tuesday, October 14). Click here to nominate a business. 

Writer: Dan Eldridge
Source: Patricia Blakely, The Merchants Fund
 

"I've always had a deep love for theme bars and Tiki bars," says Tommy Up (née Updegrove), proprietor of Northern Liberties' PYT burger bar and Emmanuelle, a nearby cocktail parlor. "As a kid, we would visit all kinds of interesting themed-out restaurants. I'm sure that played a big role in my love for Tiki culture."
 
With help from his business partner Sarah Brown, Up's lifelong fascination with themed eating and drinking is now just days away from becoming a major aspect of his professional life. The Yachtsman, a classic Polynesian-themed Tiki bar currently rising from the ashes of an old Irish pub on the corner of Frankford Avenue and West Jefferson Street in Fishtown, should be open for business in a week or two.  
 
According to Up, the new establishment had its genesis in a conversation last summer with two Emmanuelle bartenders who also happen to be serious Tiki enthusiasts. That chat eventually led to the signing of a 15-year lease on a century-old building.

When a series of critical structural issues were discovered during the renovation -- and The Yachtsman's budget was nearly blown -- Up and Brown turned to Kickstarter in an effort to recoup their losses. They raised nearly $40,000 in a month.

"In a sense the [success of] the Kickstarter backfired, because we had to double-down and make the bar way better than it was originally going to be," quips Up.
 
The Yachtsman's drink menu will feature 12 cocktails, mostly new takes on Tiki classics. The small space will also be packed with vintage Tiki accoutrements.

"A lot of thought went into doing the job that a Tiki bar is supposed to do," explains Up. "Transport you onto a mini-vacation while you're still inside the city." 

Writer: Dan Eldridge
Source: Tommy Up, The Yachtsman
 

A Miami-based co-working firm, Pipeline, is opening a Philadelphia outpost in Center City this November. The 21,000-square-foot Pipeline Philadelphia, as the facility has been dubbed, will occupy two floors in the Graham Building at 15th and Chestnut Streets in Center City.

But don't expect Pipeline's local outpost to resemble any of the DIY-influenced co-working spaces that have popped up here in recent years. The company's Miami branch -- known as Pipeline Brickell -- is a highly polished environment offering reception services and private suites starting at $849 a month. According to CEO Todd Oretsky, Pipeline also isn't one of those shared corporate office spaces that tend to price out anyone lacking an expense account. The company aims to foster an especially diverse work space, one where established business professionals and startup entrepreneurs can find themselves collaborating.

"There's a big differentiator between us and other co-working spaces," says Oretsky. "We think integrating people in the tech community and the startup world alongside active professionals leads to the highest likelihood of success."
 
To facilitate that community, Pipeline Philly plans to offer a wide schedule of events, including lectures and educational seminars featuring thought leaders; many will be free to the general public. All the better to facilitate the office's all-important philosophy of cooperative congregation.

"We are very high-design," adds Oretsky. "We have price points that can work for a blogger or a member of a large international corporation. And those two people benefit from knowing each other."
 
Writer: Dan Eldridge
Source: Todd Oretsky, Pipeline  
 

A little over two years ago, the West Philadelphia-based Enterprise Center celebrated the opening of its 13,000-square-foot Center for Culinary Enterprises (CCE), a shared incubator space where retail food entrepreneurs without a commercial kitchen facility of their own could set up shop.
 
The CCE has since become a powerful resource among the city's start-up retail food community; click here and here to read previous Flying Kite reports on the venture.
 
Around the time of the CCE's launch, Bryan Fenstermaker of the Enterprise Center Community Development Corporation (TEC-CDC) began receiving feedback that a different community of culinary entrepreneurs -- would-be restaurant owners -- was also interested in acquiring start-up assistance. So a plan was hatched to create Common Table, a restaurant incubator that will offer technical, financial and managerial assistance.
 
Common Table is currently being constructed inside one of the CCE's three retail spaces at South 48th and Spruce Streets. It will feature a rentable 40-seat pop-up restaurant for amateur or experienced chefs who would like to take their culinary creations public. The restaurant space is scheduled to open this fall.
 
In the meantime, an application process opened two weeks ago for a 6 to 12 month fellowship that will test the brick-and-mortar restaurant concepts of six to nine participants. The selection process will involve a business plan submission and a tasting competition judged by local culinary heavyweights.
 
Applications for the Common Table Fellowship can be accessed at commontablephilly.com.

Writer: Dan Eldridge
Source: Allina Yang, TEC-CDC

In a city that has gone from fine-dining desert to a veritable foodie paradise in the space of a decade, building a gourmet café chain that captures the interest of the city is anything but easy.
 
And yet that's exactly what brothers Anthony and Damon Mascieri are accomplishing with Plenty Café, their quick-service sandwiches-and-coffee cafe known for its use of natural, organic and local ingredients. The majority of the menu is inspired by the brothers' international travels.  
 
After opening the original Plenty Café on East Passyunk in 2012, and then following up with a bi-level Rittenhouse Square location soon after, the Mascieris have announced the launch of a third location. Due to open in summer 2015 at South Fifth and Monroe Streets in Queen Village, the new café will feature a specialty coffee bar and rotating menu.
 
The Mascieris have made a habit of purchasing each of the buildings in which their cafes reside and then developing residential real estate on the floors above. The Queen Village location will feature nine luxury apartments that Damon's firm, Mascieri Group, will put on the market around the same time the café opens its doors.     
 
"This location is definitely going to be the biggest of the three," says Anthony. "And being that it's on a corner [lot], we're really going to take advantage of all the window space. We'll do really extensive outdoor seating, and add a lot of greenery and other things to make it a really attractive destination for lunch."     
 
Writer: Dan Eldridge
Sources: Anthony and Damon Mascieri, Plenty Café 
 

It would be exciting enough to learn that the Eraserhood (a.k.a. Callowhill) finally has more than one independent coffee shop. But at the new Vice Coffee, Tattoos & Books, which quietly opened its doors at 1031 Spring Garden Street on February 7, customers can order up a permanent piece of body art with their half-caff quad-shot soy latte.
 
According to Vice co-owner Charlie Collazo, who also operates a nearby craft-beer pub called The Institute Bar, it was the decade he spent as a Home Depot manager that inspired the shop.

"Big-box retail is all about selection and variety," he explains. "There's a diversity of things you're able to offer the customer, so you're not relying on one source of income."
 
The neighborhood's slow-but-steady gentrification was also a motivating factor -- along with the fact that the area is low on boutique coffee. Vice is grinding beans from One Village Coffee and offering pastries from LeBus Bakery, along with a light menu of soups and sandwiches.  
 
And as for the tattoos?

"It's just an idea I had that I thought would be really cool," says Collazo. "To do a really nice, specialty tattoo studio...in a welcoming environment where you come in and you feel comfortable."  
 
It took Collazo three months to receive the approvals necessary to offer tattoos. But, because the shop offers a higher-than-average wage split to its artists, Vice is already staffed with tattooists adept at everything from portraiture and fine-line styles to old-school flash pieces.  
 
To further diversify, the shop also offers a book lending library featuring over 1,000 titles, heavy in sci-fi paperbacks and (of course) pictoral tattoo tomes. Customers can borrow books for up to three weeks at a time.

Writer: Dan Eldridge
Source: Charlie Collazo, Vice Coffee, Tattoos & Books
 

From its perch on the corner of Broad Street and Fairmount Avenue in North Philly, the ten-story Divine Lorraine -- currently crumbling, nearly in ruins -- has been watching over Philadelphia for 120 years.
 
Recently, the latest chapter in the life of this gorgeous relic was made public: A New Jersey-based real estate mogul with an impressive record of rescuing stalled development projects has agreed to lend just over $31 million to the building's current owner, Eric Blumenfeld, who purchased the building in late 2012 but underestimated renovation costs. So, after sitting empty for the past 15 years, a bit of optimism is in the air.    
 
"It seems my entire career, I came in to finish things other people couldn't get done," says Billy Procida, the lender who's now working with Blumenfeld on the building's renovation. The Lorraine may become a high-end apartment building, Procida says, or perhaps a hotel.
 
Either option will include 21,000 square feet of commercial space -- likely a mix of restaurants, lounges and retail, according to Procida, who feels that a highly visible boutique hotel could turn the neighborhood's fortunes around almost immediately. "I've just got to see if we can find an operator who can move fast enough," he adds.  
 
Procida and Blumenfeld are also exploring a 50-50 option for the building -- turning half of it into apartments and the other half into a hotel. But when it comes to the Lorraine's crucial status in North Philly, Procida has few doubts.

"If this building was finished, that neighborhood would be on fire right now," he says. "The one thing holding that neighborhood back is that building. It's that simple."

Writer: Dan Eldridge
Source: Billy Procida, Procida Funding & Advisors
 

In a world where coffee snobs are more interested in small-batch roasting houses like Blue Bottle and Intelligentsia than international chains, there's no longer a lot of street cred to be gained by wandering around town with a cardboard Starbucks cup. But if you're the type who's more concerned with showing off your hometown Philly pride, you might want to consider developing a Saxbys Coffee habit.
 
The chain was founded in Atlanta in 2005, but relocated two years later to Delaware County. Saxbys has now plans to move its corporate headquarters once again, this time to Philadelphia proper. And while Saxbys is keeping mum about the date of its upcoming move -- and hasn't yet closed on a location -- those details should be made public this summer.

According to president and CEO Nick Bayer, the company also has tentative plans to open eight new cafes throughout the Mid-Atlantic region this year. Locally, a lease has been signed on a 1,700-square-foot location the company is calling Saxbys Wash West. Scheduled to open on the southwest corner of 11th and Locust this summer, it'll be their sixth location in the city.

"We're also looking at a couple other pieces of real estate in Philly that may deliver this year," says Bayer, who adds that he's also been working for the past 18 months on a deal with Drexel University. "We can't announce exactly where it is just yet," he says of the Drexel cafe, "but it's going to be something very unique; it's going to be much more than just a traditional neighborhood coffee shop."
 
Stay tuned to Flying Kite for more details as the deals develop.
 
Writer: Dan Eldridge
Source: Nick Bayer, Saxbys Coffee 

When Green Aisle Grocery, a beloved local purveyor of organic and artisanal foodstuffs, first opened for business on East Passyunk Avenue in 2009, there were few signs that the micro-sized shop would go on to win accolades from the likes of Food & Wine and The New York Times. Indeed, in 2012, Philadelphia magazine named Green Aisle the city's best gourmet market.
 
Now fans of the grocery's farm-fresh dairy and meat products -- and its dozens of other odd and obscure edibles (Sri Lankan cinnamon sticks, anyone?) -- have another reason to celebrate. In mere weeks, a second and significantly larger Green Aisle location will hang its shingle at 2241 Grays Ferry Avenue in Graduate Hospital.
 
The ground-floor storefront will be roughly five times the size of Green Aisle's 260-square-foot South Philly shop, says co-owner Andrew Erace, who runs the business with his brother Adam, a local food writer. Even better, Little Baby's Ice Cream will be serving eight different flavors of locally-made deliciousness from a dedicated counter.
 
According to Andrew, the idea for Green Aisle's second location partially resulted from a desire to serve a neighborhood without access to the sorts of specialty items the store carries. And, thanks to the swift growth of a product line the brothers launched in 2012 which includes items like organic nut butter and infused honey, they also needed more space.

"It got to the point where in order for us to grow as a business, we really needed to have our own [location] with a kitchen," explains Andrew.   
 
The Erace brothers will also be taking advantage of that new kitchen to offer simple, grab-and-go prepared foods such as parfaits and lettuce-based salads. If all goes well, the store could open as early as May 1.      
 
Source: Andrew Erace, Green Aisle Grocery
Writer: Dan Eldridge
 

If you need a sign that Philly's retail infrastructure is getting back on track, look no further than the stretch of Germantown Avenue that runs through the northwestern neighborhood of Chestnut Hill.

In early April, the Chestnut Hill Business Association (CHBA) announced that five new shops have either recently opened on the avenue or will soon, while a sixth shop has moved into a larger location "to accommodate its rapid expansion," according to a release.
 
The avenue's latest addition, the children's boutique Villavillekula (the name is a Pippi Longstocking reference), celebrated its arrival with an opening reception at the end of March. The Chocolate Hill Candy & Fudge Shop, meanwhile, opened in December and has already proven popular with kids and grownups alike.
 
Also new for the toddler set is a youngsters-only version of the popular Greene Street consignment chain. Known as Greene Street Kids, it'll open sometime this month, as will Greenology, a gardening and organic lifestyle store across from the Chestnut Hill Hotel. Newly launched inside the hotel is Paris Bistro & Jazz Café, the third offering from Chef Al Paris, who also runs the acclaimed Heirloom and Green Soul eateries in the neighborhood. 
 
According to CHBA Executive Director Martha Sharkey, the growth of the neighborhood's retail scene owes a large debt to the organization's retail recruitment program, which launched four years ago. The neighborhood has welcomed 15 new shops and eight new restaurants in that time.  
 
"We are very lucky to have this program," says Sharkey. "For a downtown district, it's always challenging -- with malls, and with other places for people to shop -- to really create a vibrant, thriving community. The retail recruitment has really been essential to us."  
 
The retail recruiter position has recently become available; interested candidates can view the job description here.
 
Source: Martha Sharkey, Chestnut Hill Business Association
Writer: Dan Eldridge

Local coworking space Benjamin's Desk recently leased an entire extra floor inside the Allman Building at 17th and Walnut. During the grand opening reception last Friday, visitors had an opportunity to check out the expanding organization in person. 

There were the expected touches -- exposed brick walls and duct work, perfectly buffed hardwood floors -- and then there were the amenities you don't always find in the coworking world: craft beers are on tap in the communal kitchen and a small outdoor roof deck that will eventually house a bar with lounge-like seating.    

According to president and CEO Michael Maher, who opened Benjamin's Desk on the building's seventh floor in October 2012, the newly-revealed eighth floor has been operational since September of last year. So why a five-months-late grand opening? 

"We had the space occupied by a company that was in stealth mode," explains Maher. "Now that the [eighth] floor is [officially] open and we're getting it occupied, we're looking to expand elsewhere in the region, including University City and the suburbs."

Maher says he and his colleagues are still "in the early stages of understanding what potential customers would want" in a University City or suburban-based shared office space, and they're being pretty hush-hush in terms of the exact locations under consideration. 

"We definitely think there is a demand in both [University City and the suburbs]," he adds. "But it took us two years to find this location. We'll wait until we find the right locations."

Writer: Dan Eldridge
Source: Michael J. Maher, Benjamin's Desk

After spending more than two years on a frustrating search for the ideal urban location in which to open a small-batch craft brewery, Tim Patton finally settled on a historic building with beer in its bones. Now, he’s only a few short months from opening Saint Benjamin Brewery.

Located in South Kensington near the corner of North 5th Street and Cecil B. Moore Avenue, the three-story, 14,000-square-foot building Patton bought for $395,000 was originally home to the Theo Finkenauer Lager Beer Brewery, which went out of business sometime around Prohibition. Technically, the space was home to the brewery's carriage house and stable, so Patton has been spending much of his time lately (not to mention his money; the project is largely self-financed) rehabbing the space. 

"The building itself was actually in very good shape," he says. "This was the first clean and dry building I had actually seen when I was looking at spaces." 

Still, certain infrastructure upgrades were necessary. The former carriage house has been outfitted with new electrical circuits, a sprinkler system, new sewer lines and a two-inch gas line, to name just a few of the recent improvements. And, as Flying Kite reported in April, Patton used crowdsourcing to fund a facade rehab.

The brewery hopes to officially open for business in early spring, distributing beer to pubs in Fishtown, Northern Liberties and Kensington. Saint Benjamin's will also offer the occasional brewery tour and tasting, and customers will be able to fill growlers onsite. 

Patton also has plans to eventually add a brewpub. Unfortunately, that step is still probably another year or two away.

Writer: Dan Eldridge
Source: Tim Patton, Saint Benjamin Brewery

Over the course of the last decade, the Francisville Neighborhood Development Corporation has been extremely active. After working to eradicate blight, cut down on crime and bring affordable housing to the neighborhood (located just east of Fairmount and north of Spring Garden), the organization had pivoted towards economic development. The recent opening of Tela's Market & Kitchen at 1833 Fairmount Ave. is the most recent marker of their success.

Developer Daniel Greenberg and Chef Chad Williams (formerly of Jose Garces' Amada and Chifa) partnered to create the artisanal grocery and café. Canno Design's Gabrielle Canno and Carey Jackson Yonce (who also designed Wishbone in University City) created a warm and intimate feel in a single high-ceilinged room by carving out sections for multiple uses. A counter with prepared foods anchors the space, with seating for the made-to-order counter along the windows, and refrigerated cases along the back walls. 

Greenberg, who has lived in Spring Garden with his wife and two young children for the past five years, saw a need for fresh food in the area, and set his sights on a lot that had been vacant for more than 20 years. Greenberg pursued the project because of his passion for the area.

"I am a lifelong Philadelphia resident," he says. "And I think each great neighborhood should have a smaller, more neighborhood-scale specialty market... I started construction on the building in December of 2012. All ground-up construction in the city presents its unique set of challenges, and this project was no exception."

According to Greenberg, the neighborhood has been supportive of Tela's; the market is already drawing repeat customers. Several of the employees live in adjacent neighborhoods, including Francisville, Spring Garden, Fairmount and Brewerytown.

Greenberg's next project in the area will be even more ambitious -- he plans to break ground on a large commercial space with residential units at 1720 Fairmount Avenue in Spring 2014.  

"I am committed to this neighborhood, and look forward to identifying future development opportunities," he says.

Writer: Nicole Woods
Source: Dan Greenberg, Tela's Market and Kitchen

Flying Kite readers should remember the address 322 W. Chelten Avenue — the Germantown storefront was a site for our "On the Ground” program, a year-long initiative that activated underutilized spaces in under-covered neighborhoods. Thanks to a new loan program from the Commerce Department, 322 W. Chelten Avenue is now home to a thriving new business, Rose Petals Café & Lounge.

The InStore Forgivable Loan Program targets retail, food and creative businesses on commercial corridors that serve low- to moderate-income communities. The loans enable businesses to purchase equipment and materials in order to expand or open a new location. The Department of Commerce had previously offered grants for façade renovations through its Storefront Improvement Program, but a funding option for interior improvements did not exist.

"The program helps to revitalize Philadelphia's commercial corridors as the backbone of residential neighborhoods," says Jonathan Snyder, Sr. from the Commerce Department. "InStore Loans strategically invest in businesses that will increase foot traffic, improve the retail mix, enhance existing businesses, create jobs, and provide goods and services." 

The loans range between $15,000 and $50,000, and are forgiven if the recipient meets program guidelines for five years. For Rose Petals, the funding covered the cost of critical start-up supplies, including refrigeration units, a hood and exhaust system for the stove, new floors, shelving units, a copper ceiling and a coffee bar.

Rose Petals was selected because of its proximity to public transportation and distinction as one of the neighborhood's only sit-down restaurants. As the first business to receive an InStore Loan, the cafe influenced the program's development.

"They were selected as the pilot recipient to help us refine the application process to ensure it was as efficient as possible for future applicants," explains Snyder.

The InStore Program is now available for businesses on more than 88 eligible commercial corridors throughout the city. 

Writer: Nicole Woods
Source: Jonathan Snyder, Department of Commerce