New concept sought for closed Sip Coffee and Beer Kitchen

Chris Loeffler is the CEO and co-founder of Caliber, The Wealth Development Company, a real estate investment and development firm that acquired partnership interest in Sip Coffee & Beer Kitchen last year.

On May 30, Sip Coffee and Beer House took to Facebook to announce the closing of its third location, Sip Coffee and Beer Kitchen on Shea Boulevard. 

“When reality dictates closing, we have a choice: to do so in secrecy and shame, or instead with dignity, integrity and pride,” the Facebook post stated.

 “Although this fantastic journey with our most recent location, Sip Coffee and Beer Kitchen in North Scottsdale was short-lived, it wouldn’t have been possible without you, our loyal following,” it added

Sip Kitchen may have shuttered its doors on May 31 — a little over a year after it opened in April 2018 — but plans are currently underway to bring a fresh, new concept into the space before the end of the year.

According to Caliber, The Wealth Development Company — a real estate investment and development firm that acquired partnership interest in Sip Coffee & Beer Kitchen last year — Sip Kitchen closed because it simply wasn’t making enough revenue to support the full-service kitchen concept.

“We spent a year trying to see if that would work, and it didn’t,” said Chris Loeffler, CEO and co-founder of Caliber. 

Caliber, which owns hotels and other retail properties in the Valley, invested in Sip’s third concept to “test the waters,” Loeffler said.

“While the other two are doing really well, [Sip Kitchen] wasn’t, so we said we’d rather bring a better concept to this space,” he added.

Sip owner Travis Radevski did not respond to requests for comment. 

“I think if the property had been half of the size [and] the lease cost hadn’t been quite so high, it would have made sense to continue the Sip concept, but we need something that is going to produce a higher level of revenue and pay for the expenses,” Loeffler said.

In terms of what might fill the now-empty space, Caliber has been in discussions with over 20 potential new partners.

Loeffler said they’d like to bring in a modern, healthy food concept with an adult beverage component into the building.  

“I live in the neighborhood, so I know, at least, what it is that I want,” Loeffler said with a laugh. “Finding a good, healthy restaurant with great, healthy food and good drinks is what we need in that area.”

Other ideas Caliber has tossed around include a microbrewery concept, evening-only concepts and breakfast- and lunch-only concepts. 

“We’ve looked at everything,” Loeffler said. “We’ve been doing a lot of work behind the scenes before the closing to see, what is that concept that the community wants? We’re open to anyone’s feedback.”

Loeffler said Caliber prefers to partner with a local business, “especially someone who already has a couple of locations that’s looking to move into Scottsdale.”

“Another great idea that we have would be to partner with somebody who has a phenomenal concept they’re running out of, like, downtown Phoenix but hasn’t come to the East Valley yet,” he said.

Once Caliber decides on a partner, Loeffler said they will make any necessary changes to the space over the summer and reopen with the new concept this fall. 

“We have a desire to close the deal quickly,” Loeffler said.

Previously, it was reported that Sip’s future expansion plans include opening new locations throughout Arizona and neighboring states in the coming years; however, Loeffler said Caliber does not currently have plans to expand the Sip brand.

“We’re looking to see how the first two locations continue to do because I know that there have been some changes over there. So, if that goes well and we have a coffee concept and don’t have to have a full-service approach with food, we would definitely partner with them again if the time came,” he said.

The other two Sip locations include one located in southern Scottsdale and one in Arcadia.

The Sip on Goldwater Road in Scottsdale is, first and foremost, a coffee-and-beer concept that’ll occasionally serve food from outside vendors. That shop sells pastries and small bites, however.

The second Sip concept located on Indian School Road in Phoenix is considered a select-service food concept with a limited amount of food produced by a small kitchen on site.

“We love the Sip brand, and we’ll continue to be Sip customers,” Loeffler said. 

Partnership inquiries can be directed to info@caliberco.com.