Owner Confirms ‘Three Potential Bidders’ for Former KFC Building

Shuttered since early August, the lot at 345 West Sierra Madre Boulevard once housed Sierra Madre's only fast food restaurant, a Kentucky Fried Chicken. Now it stands empty, stripped of fryers and sporks, awaiting a new tenant.

Many in the town were taken by surprise by the sudden absence of the chain, a fixture in town, according to some, for upwards of 40 years. "In my mind it's always been there," said Councilman Josh Moran, a lifelong Sierra Madre resident. "When I was 7 years old my bike got stolen when I was ordering food there. I've probably been to that KFC maybe 10 times in my life."

With its own parking lot and a storefront facing Sierra Madre Boulevard, the property could be an attractive piece of real estate for businesses looking to break in to tight-knit Sierra Madre.

After KFC's sudden departure, a sign went up in the building's window announcing that it was for lease. On the sign is a phone number with a 626 area code, as well as the name of a management company, "R.G. Properties." The property's fate is almost entirely the prerogative of the owner and management company, though early attempts to contact them were rebuffed and very little information about possible new tenants was made available.

Nevertheless, a series of telephone conversations with representatives of R.G. Properties indicated that the next business to inhabit the space will likely be another fast food restaurant.

The phone conversations, as well as a conversation with two employees of the neighboring Sierra/Crown City Glass & Mirror Co., also revealed several other facts: both the KFC lot and the Glass & Mirror Co. located behind the former KFC store are owned by a Robert M. Gavidia (the "R.G" in R.G. Properties).

Gavidia was the last representative of R.G. Properties to speak with Sierra Madre Patch. Aside from a few comments regarding another online news article, he did not venture any new information, only confirming in a general way what his employees, apparently against his wishes, revealed.

Gavidia and his employees are in talks with three potential bidders. If no deal is made, Gavidia has considered moving Sierra Glass & Mirror into the KFC space, where it would have a full showroom.

All of Gavidia's employees, including those at Sierra Glass & Mirror, have been under strict instructions not to speak publicly about the ongoing negotiations. According to Gavidia, this is because of an article that appeared online containing a great deal of "false information" regarding those negotiations. He would not or could not say what organization or individual published this information, only that it was "located online," and that as a result of this story he is wary of the press.

Asked if he thought someone was deliberately trying to sabotage the negotiations, Gavidia replied, "It's difficult to find anything damaging. They're definitely making stuff up, but I have no idea for what purpose."

The person who first answered the phone for R.G. Properties, in late September, spoke hesitantly about the property's status. Asked if there was any interest in the lot, the representative replied in the affirmative, saying there have been "an overwhelming amount of calls" from curious parties.

In particular, the representative stated that "there are three potential bidders at this time." Though he would not reveal their identities, he did relate that they are "all food related… all fast food type places." Asked if R.G. Properties was aware KFC would be exiting the space, the representative said yes, they knew "months" in advance. "We had warning. The lease was up, and there was a possibility that it might happen." Though he would not confirm precisely when they knew KFC would be leaving, he did note that KFC had planned to do the same thing the year before. 

Asked if there was any concern about a business-unfriendly impression created by the boarded up Skilled Nursing Center just a block away, the representative said no, "[The lot] is one of the prime locations in Sierra Madre—it doesn't have any parking problems, like in downtown."

The City of Sierra Madre, however, apparently is concerned. "We got a call from the city," the representative said, "asking if we intended to board up the windows." They have no such intention. "With any luck, the place will be rented before your piece goes to press." The representative declined to be named.

Another call to R.G. Properties several days later by Sierra Madre Patch Editor John Stephens provided more details. A different representative, who also declined to be named, said "I can confirm" that there are three potential bidders. Asked about the assertion by the previous R.G. Properties representative that they hoped to have a tenant by the time this article went to press, the representative said, "That can still happen. Certain things were agreed on, and they changed all of a sudden, so it's just a matter of coming up with an agreement between the parties."

One of the bidders evidently came close to an agreement, but it fell through. "It involves corporate," said the second representative, "and it's a franchise, and the franchisee didn't have as much pull as he thought he did, so at this point we're dealing with the corporate office."

Asked if all three bidders were corporate restaurants, the representative said "No. Not all corporate. Two of them are. One of them is not. Although it is a chain-type business, but they're independently owned."

Asked about KFC's sudden departure, the second representative stated that "[the store] had been requested by corporate to add a drive-thru and they wanted to have a minimum of 14 parking spots, which wasn't going to happen to either… Ultimately they had a decision to make, either to relocate it or close it."

He also confirmed the first representative's statement that R.G. Properties was aware in advance that KFC would be leaving the property. "They had a lease to honor… They didn't just leave, they completed their full lease… We knew they were probably going to relocate."

But KFC spokesman Rick Maynard said the decision was made for other reasons.

"It is our understanding that the franchisee made the business decision to close the restaurant because his lease was up and a new lease could not be negotiate," said Maynard.

"The other option," he said, "is that Sierra Glass & Mirror, which is the company in the rear, they may be considering taking over the space as well, to expand and create a full showroom."

A visit to Sierra Glass & Mirror provided the final pieces of information. Like the two representatives who answered the phone for R.G. Properties, the two employees at Sierra Glass & Mirror were very reluctant to speak.

They did mention, however, that both properties were owned by the same person, and that years ago he had considered moving Sierra Glass into the KFC lot. One of them added, "We'd love to see a restaurant in there, so we could have a good lunch!"

Residents hoping for a mom 'n' pop eatery to replace the mega-chain will likely have to settle for more of the same. There was also a mention by the second representative that one of the three potential bidders is "independently owned." 

"It would be cool if there was an In-N-Out here," said Edie Cox, a Sierra Madre resident who could not recall ever eating at the KFC, "though I would worry about the traffic it would generate, even without a drive-thru," she qualified, referring to the City ordinance prohibiting drive-thru windows in the city.

For his part, Councilman Moran would "love to see a good taco joint go in there. Cheap tacos and burritos would be great."