E’ville Biz: Jamba Juice moving headquarters to Texas, AAA to Walnut Creek
Jamba Juice recently announced its intent to move from its EmeryBay office complex headquarters to Frisco, TX. 120 Emeryville jobs will be impacted. AAA also recently announced it would move its employees to Walnut Creek next year to consolidate its Northern California operations. AAA occupies the top four floors of The Towers complex on our Peninsula where it’s been since 2011. Meanwhile, the struggling Leapfrog Enterprises has yet to announce what it will do after being acquired by VTech. This compounds some recent bad news of a rash of restaurant and business closures in our town.
Commercial rents are rising as fast or faster than residential rents and businesses are susceptible to increases the same way household renters are. Jamba was reportedly looking at a 30% increase in its $1.2 million annual rent at its Emeryville location. Companies are also being impacted by rapidly rising labor costs in tandem with California’s spiraling cost of living. Combined, these are causing companies to look to reduce costs elsewhere according to this LA Times piece. “As a whole, the restaurant sector is struggling to deal with higher labor costs. If those chains can’t pass those costs on to consumers, which many have been unable to do, they have to reduce costs in other parts of the business” notes Nick Setyan, senior vice president of equity research at Wedbush Securities. The piece also notes that Carl’s Jr. recently announced it will move its Carpinteria headquarters to Franklin, TN next year.
Jamba Juice will leave Emeryville, move HQ to Texas
By George Avalos
The owner of Jamba Juice will move its headquarters out of Emeryville and defect to Texas, partly driven by the cost of doing business in the Bay Area, according to company statements Thursday and a regulatory filing.
About 120 employees in Emeryville are affected by the relocation, according to Jamba, a maker and retailer of smoothies and other beverages.
“As we continue to spread our healthy living mission globally, it has become increasingly clear that a relocation of our support center will better position the company to extend our brand,” said David Pace, chief executive of Jamba, whose subsidiary is Jamba Juice.
Emeryville-based Jamba will move its headquarters and support center to a Texas suburb called Frisco, which is in the Dallas area.
Read more on East Bay Times →
AAA Northern California will move its head offices to Walnut Creek
By George Avalos
AAA’s Northern California corporate headquarters and hundreds of employees will relocate in 2017 to Walnut Creek, where it had been based for a number of years, the auto club said Friday.
The new Walnut Creek head offices of AAA Northern California, Nevada and Utah will include the company’s roadside assistance and travel agency operations, as well as an array of administrative functions.
Potentially more than 350 employees of AAA Northern California, Nevada and Utah will move next spring to Walnut Creek, Cynthia Harris, a spokeswoman for AAA, said. The auto club will move to the Treat Towers office complex that’s perched next to Interstate 680.
Read More on MercuryNews.com →