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Nationwide alcohol retailer Beverages & More (BevMo) has given up on plans to set up shop in downtown Menlo Park, but the franchise hasn’t given up on building a full-scale store in the city.
BevMo’s previous plans called for a smaller-scale shop of 5,000 square feet with a wine tasting bar in the former Dal Baffo restaurant site on Santa Cruz Avenue — a proposal local alcohol merchants and small businesses vehemently opposed, claiming the alcohol retailer would hurt local businesses and change the character of the city’s downtown area.
BevMo co-founder Steve McLaren said high costs associated with trying to change the design of the store to city staff’s liking, not opposition from local businesses, led BevMo to withdraw the proposal. He said BevMo still plans to find a new Menlo Park location to build a full-scale store, similar to the store in Redwood City.
“The economics of it just didn’t work out for us once we started changing the frontage of the building,” Mr. McLaren said. “The opposition didn’t bother us, and had nothing to do with our decision. We liked working with [city staff], and we’re still coming to Menlo Park.”
David Johnson, the city’s business development manager, said BevMo likely is in the market for an 8,000- to 10,000-square-foot building for its full-size store, but there aren’t any available sites of that size in Menlo Park.
He said the vacant auto dealerships along El Camino Real are a potential location, but noted that BevMo probably is looking to occupy an existing building, not build a new structure.
Opposition
Local businesses, headed by Beltramo’s Wines and Spirits, campaigned against the new BevMo store once the nationwide alcohol retailer’s plans were made public in July.
John and Dan Beltramo could not be reached for comment.
Sophie Lo, who owns the former Dal Baffo site, said potential competitors painted BevMo as “an enemy” to small businesses. BevMo would have increased business activity in the city’s downtown area, she said.
“Local competitors went out of their way to work against BevMo and blow this whole situation out of proportion, and it was just becoming too costly for [BevMo] to do this,” she said. “I don’t know what I’m going to do with this building now.”
Six alcohol vendors <0x2014> including Beltramo’s and Draeger’s — formed a group called the Menlo Park Purveyors of Wines and Spirits in August, and wrote a letter to the Planning Commission, urging commissioners to reject the issuance of a use permit for BevMo to move into the Dal Baffo site.
Several weeks later, a similar letter signed by 65 businesses opposed to the BevMo proposal was mailed to Menlo Park residents.
‘Free market system’
Some City Council members acknowledged concerns that a BevMo store — of any size — could impact local businesses, but ultimately, they thought, more businesses are good for the city.
“From a completely capitalistic point of view, businesses have the right to go into competing markets,” said Councilman Richard Cline. “I’m wary to get in the way of a free market system.”
“Menlo Park benefits by having more retail business,” said Councilman Andy Cohen. “I’m sensitive to the concerns, but I need to think about what’s best for Menlo Park.”
