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Rent increase forces closure of Kitsilano brunch spot after 30 years of business – CBC.ca

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Since 1993, loyal patrons have flocked to Nelly’s Grill, a casual brunch place on West 4th Avenue in Vancouver’s Kitstilano neighbourhood, known for its friendly service and eggs benedict.

But Nelly’s Grill — formerly Joe’s Grill — will be closed by the end of the month. 

Owner Nelson Ma told CBC he made the difficult decision to close due to an impending rent increase of at least 40 per cent.

“When my rent goes up at least by 40 per cent, there’s no way we’re going to survive … I’ve decided that it’s time to move on,” said Ma.

Their building’s new owner, who bought the place last September, told Ma they will increase the restaurant’s rent when their lease ends at the end of 2023. 

Joyce and Nelson look at each other at the front door of Nelly's Grill. They are both wearing glasses.
Nelly’s Grill owner Nelson Ma and long-time manager Joyce Yee are pictured at the restaurant on Tuesday. Ma was told their rent would increase by 40 per cent after their lease ends. (Ben Nelms/CBC)

Ma initially tried to sell his business when the new landlord took over, but said buyers were not interested because of the rent increase. 

“I’m just closing because of the rent, nothing else … It’s not because we’re not doing good business.” 

‘Smiling faces and the best bennies ever’

Fiona Scott, who lived in one of the two residential suites above Nelly’s Grill for over seven years, was a regular customer. She went to Nelly’s the first week she moved in, and said Ma and the staff soon became family friends. 

“They were always very welcoming and it was very obvious from the regulars that they had in the diner. I was happy to become one.”

Fiona Scott is pictured. She is a blonde woman wearing a black shirt.
Fiona Scott lived in one of the residential suites above Nelly’s Grill for seven years and was a regular customer. (Fiona Scott)

Scott had to move out last month because the new owner is renovating the suites for over a year, she said, adding she does not plan to return.

“I don’t think I really ever got a clear answer whether I could come back. I’m sure the rent is nearly doubled,” said Scott. 

Scott said she will miss the community at Nelly’s and her favourite order, the ‘Kitchen Sink,’ which she describes as “a good plate of everything.”

“They’re a family … their legacy is smiling faces and the best bennies ever.” 

Two men sit across each other at a diner.
Patrons at Nelly’s Grill in Vancouver on Tuesday. Many say the restaurant is known for their friendly service and eggs benedict. (Ben Nelms/CBC)

Jane McFadden, executive director of the Kitsilano Business Association, said Nelly’s is a staple in the neighbourhood — a great spot for early risers who want a good breakfast, those nursing a hangover, and everyone in between.

“Everyone’s really going to miss that staff and that environment.

“It’s just sad to see it go.” 

‘Local treasures will be priced out of the market’

The building’s new landlord, a company called Novena Land, also owns the buildings on West 4th Avenue that housed Bishop’s Restaurant and Peak Golf’s former location. 

Bishop’s closed earlier this year because of a rent increase, while Peak Golf told CBC they relocated to a new building for the same reason.

Novena Land did not respond to CBC’s request for an interview.

Nelson smiles at the camera. He is wearing glasses and a Nelly's Grill uniform, with the logo on his hat and black shirt.
Nelson Ma pictured at Nelly’s Grill in Vancouver on Tuesday. He says he is looking for a new venue to operate in the future. (Ben Nelms/CBC)

Vancouver city councillor Colleen Hardwick, a long-time customer of Nelly’s, said she is “heartbroken” to see the restaurant go. 

She says there is little the city can do to protect local businesses, as commercial tenancy protections fall on the province. 

“Speculators are getting in on the action and this will transform the neighbourhood. As we’re already seeing, the mom and pop shops, the local treasures will be priced out of the market,” said Hardwick. 

While Nelly’s is saying goodbye for now, Ma said he is looking for a space to operate in the future.

“I have a lot of good loyal customers and I thank them very much. I really appreciate all their patronage all these years.”

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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