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Rent increase forces Philly Steak Sub in Hesperia to close by summer

HESPERIA, Calif. (VVNG.com) — A spike in rent has forced business owner Daniel Song to close his establishment by summer of this year.

Usually, businesses close when times are bad, but in Hesperia, it’s economic growth that is forcing Philly Steak Sub to shut their doors.

Song and his family have operated Philly Steak Sub at 14875 Bear Valley Road for about 6 years.

“The property owner sent me a notice that my rent is increasing from $2200 a month to $3000, a difference we can’t afford,” Mr. Song told Victor Valley News. “I’m saddened to know we won’t be here soon.”

He will close his restaurant after 6 years at the location. He has discussed the possibility of relocating his business to Las Vegas, Nevada, where he says rent is still more affordable.

“We operated out of a car dealership in Victorville for some time, but by 3 pm, everybody would abandon the area and go home,” he said.

After choosing the Bear Valley Road location as the eatery, Daniel said the location is not the ideal spot of access and visibility, despite being on a busy road.

“There is a hotel next to us that blocks our view if you’re traveling eastbound, and from westbound, our business is blocked because of a tall chain linked fence that’s obstructing access to our business,” Song said.

Song said the biggest complaint he receives is about the parking and access to his front entrance.

“People want convenience, and if they can’t get to us, they won’t try us, and our business is impacted by this,” Song said.

A tall metal chain fence divides the parking lot, giving access only to eastbound drivers. Parking was added to the back, but often times people don’t want to park in the back alley.

The restaurant boasts a 4.5-star rating on Yelp from 92 reviewers who mostly praise their mouth-watering Philly Steak & Veggie Sub sandwich.

One thing Song has noticed is that reviewers also give lower stars because of the location, and some people will go into the restaurant upset already because of the parking situation.

“3.5 Stars, Parking entrance is rather awkward.  Awkwardness comes from location not at the corner, but rather, right before the corner so no access from adjoining street, Cottonwood.  (If you turn right onto Cottonwood, then there’s a different business and it’s fenced off).  You can only get here from Bear Valley Blvd, coming from the direction of freeway exit,” said one Yelp review, Susie L.

Another reviewer, Mike L, said, “It was worth the effort parking there, the only way to pull in is off eastbound Bear Valley Rd.”

And again, “Only down side may be getting in the front parking lot but there is new back parking,” stated Yelp reviewer Michelle M.

For the time being, Song said he will explore all opportunities from here until the planned closing date.

An attorney for the family who owns the property spoke with Victor Valley News and said Mr. Song’s lease was issued below market value, at $1.15 per square foot, now the ongoing market value is $1.50 per SF.

“The tenant aggressively negotiated the lease the first time, now that we’re asking for market value, the payment will increase from $2035.50 a month to $2,655, far different from $3,000,” said Shant Hagopian Esq.

“We’re happy to keep him in the building, but at the current market price, all these other years he has been reaping the benefits of paying under market value,” the attorney said.

Philly Steak Sub: 14875 Bear Valley Road Ste. A, Hesperia, California Phone: 760-244-3555

If you still have not tried this place, it’s definitely a satisfying experience.

***Just to clarify, this is Philly Steak Sub on Bear Valley Road that will be closing. They have no affiliation with Philly’s Steaks & Subs on Main Street in Hesperia.

The photo above shows the chain link fence that separates the two parking lots, preventing front access from Cottonwood Avenue.
The business has served at this locations for 6 years.
The place is known best for their mouth watering Philly Steak & Veggie Sub.

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