Dairyland Old-Fashioned Frozen Custard & Hamburgers and its sister concept Mid-Way Bakery will close their location at 3rd Street Market Hall in downtown Milwaukee later this month as a new out-of-state vendor prepares to open in its place. The market hall announced Tuesday that Minneapolis-based Bebe Vito will open in mid-summer, serving burgers, chicken and homemade
Dairyland Old-Fashioned Frozen Custard & Hamburgers and its sister concept Mid-Way Bakery will close their location at 3rd Street Market Hall in downtown Milwaukee later this month as a new out-of-state vendor prepares to open in its place.
The market hall announced Tuesday that Minneapolis-based Bebe Vito will open in mid-summer, serving burgers, chicken and homemade ice-cream. It will be the fifth location overall and first outside of the Twin Cities for co-owners Ben Spangler and Gabriella Grant, who launched the concept in Minneapolis' Uptown neighborhood in summer 2020.
The couple has ties to Wisconsin. Grant earned her bachelor's degree from the Milwaukee Institute of Art & Design in 2014 and Spangler previously worked as a chef in the far western part of the state.
“I am so excited to come back to Milwaukee,” Grant said in a statement. “I learned so much about myself in this city…and the idea of returning there just feels right. The food and beverage scene is growing, the downtown and surrounding areas are diverse and vibrant, it feels alive during the day and night—we’re excited to be a part of that.”
An early exit
Dairyland's closure comes after more than three years as an anchor tenant at 3rd Street Market Hall. The burger joint, which originally launched during the pandemic as a curbside operation in Oak Creek and later added a mobile food trailer at Zocalo Food Truck Park in Walker's Point, was the first tenant along with its offshoot Mid-Way Bakery to sign a lease with 3rd Street Market Hall, which opened in January 2022 after a string of pandemic-related delays.
Despite high rent and periods of slow business at the market hall, Dairyland had no intention of winding down operations there anytime soon, co-owner Joe McCormick told BizTimes Tuesday. That changed when 3rd Street Market Hall management informed Dairyland last month that its lease would be terminated roughly a year and a half before the term expired, giving the business 60 days to vacate.
McCormick said he was aware that this could happen based on a provision that was added to the lease agreement when Dairyland renegotiated its term from a percentage-based rent rate to a slightly lower flat rate. The provision gave 3rd Street Market Hall the ability to replace the current tenant with another tenant willing to pay the higher percentage-based rent.
"We didn't think it would happen, but it did," said McCormick, who co-owns Dairyland with Kurt Fogle, Brent Fogle and Katie Fogle.
Omar Shaikh, partner at 3rd St. Market Hall, confirmed Dairyland's lease was terminated early. He said Bebe Vito approached the market hall about eight or nine months ago with interest in opening there.
"We're at max capacity with a waiting list right now," said Shaikh, who also owns downtown steakhouse Carnevor. "It's important to us to also continue to evolve and give people new choices. I say we're going to be tweaking this for years to come."
What's next for Dairyland?
With its time at 3rd Street Market Hall coming to a somewhat abrupt end, Dairyland is scrambling to figure out its next move.
The business in early May filed an occupancy permit for a stand-alone building at 7602 W. Lisbon Ave., with intentions of purchasing the property, formerly home to A&J Grill. McCormick said the group is "actively pursuing" the deal and is currently working to finalize its financing package.
Dairyland is currently searching for a turnkey space to rent in the meantime.
[caption id="attachment_547086" align="aligncenter" width="1280"] Joe McCormick, Brent Fogle, Kurt Fogle and Katie Fogle, co-owners of Dairyland.[/caption]
On the menu at Bebe Zito
Bebe Zito has gained national attention for its small batch ice cream, including Tres Leches Strawberry Snickerdoodle, which was featured on the "Food Network," and Marvelous Mrs. Hazel, which was was recognized as the third-best non-dairy ice cream in the country at ConeCon.
Hot menu offerings will include the Bebe Burger, Cheese Curds, Honey Butter Chicken Sammy and Honey Butter Chicken Tendies, among other comfort food dishes.
The Milwaukee location will not be Bebe Zito's first food hall operation. It previously had vendor stalls at Malcolm Yards Market and Eat Street Crossing, both in the city of Minneapolis.
In the weeks leading up its opening at 3rd Street Market Hall, the business plans to host sneak peek tasting events featuring popular ice cream flavors samples from the food menu.
[caption id="attachment_540824" align="aligncenter" width="1024"] The Avenue, located 275 W. Wisconsin Ave.[/caption]
