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Recent Restaurant Closings - More Than Usual?


Andelman

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Is it just me, or does it seem like there is a lot of restaurant closings over the past 3 months? Seems like everytime I tune into DR.com, Facebook, Eater, etc... there is another announcement of a place closing down. More so than I can ever remember in the past....

I can only offer my sentiments to those that have had to close up shop....

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Is it just me, or does it seem like there is a lot of restaurant closings over the past 3 months? Seems like everytime I tune into DR.com, Facebook, Eater, etc... there is another announcement of a place closing down. More so than I can ever remember in the past....

I can only offer my sentiments to those that have had to close up shop....

Yes, there are a higher than normal amount of closings. However, I've been making it a point to stay on top of them in recent weeks - this, opposed to reporting openings. Why? Because I don't want to start threads. Why? Because I don't want my name plastered all over the place. I'm trying to capture history, and am stepping back to allow others to break opening news because I've decided that's a chase I don't want to pursue. Don't let it get you down - lots and lots of places are opening (think about it - how many closings are there that result in vacancies? Not many.)

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3 hours ago, dcs said:

The song remains the same.....  Why is Arlington Losing So Many Popular Restaurants?  by  Lisa Rabasca Roepe, April 17, 2017, in Arlington Magazine.

As a former retail/restaurant real estate broker/agent and as someone who does work with the restaurant industry that, IMHO, is an excellent article and perspective.  It includes some national data, information with which I was unfamiliar.  What is occurring in Arlington, DC, and around the suburbs with restaurants opening and closing is not unique to this area.  The historical info on rents in the Wilson Blvd corridor is a range that I've seen from the early 90's to today and with which I would agree.  Pretty freaking amazing.

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From my less knowledgeable point of view, I think restaurants often make bets on real estate and locations where they THINK they can afford and make a buck IF their hunch is right (people moving in with disposable incomes they are willing to spend).  I remember my wife and I wanting to go to Masseria (delicious. but expensive and see no reason to go back) , I had no idea it was in the food warehouse district that Union Market had dived in to. It seemed at least party crazy, but given the building activity there now, it seems smart.

By the time all of the building finishes up in a location, those leases come up for renewal at far, far higher rents, and these restaurants either close or have to move - no easy choice. The only thing that can keep a restaurant in a location for a long time is if they own the property, right?

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49 minutes ago, Pool Boy said:

The only thing that can keep a restaurant in a location for a long time is if they own the property, right?

Or if they're successful enough to renew the lease.

(Your point-of-view is not less knowledgeable.)

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12 hours ago, Pool Boy said:

The only thing that can keep a restaurant in a location for a long time is if they own the property, right?

Why it warms my heart that Tom Power had the foresight to buy the two properties that Corduroy and Baby Wale reside in.

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1 hour ago, DanielK said:

Why it warms my heart that Tom Power had the foresight to buy the two properties that Corduroy and Baby Wale reside in.

...and that isn’t easy either as it requires up front capital. 

But it sure can eliminate “rent rate risk” which has been hitting restaurants who may well have had affordable rents in the first period of a long term lease but face incredible increases due to unbelievable market property value changes over the decade or so of an initial lease.  

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