How can it be that the great recession was a good thing for any business segment?
Well it was for local restaurateurs in the Phoenix metro area… and here is why:
- There were a ton of failed, fully-fixturized, built-out restaurant spaces on the market- low cost to convert, rebrand & re-open.
- The landlords were more willing to take a chance on local restaurant groups
- The landlords were willing to offer big rent incentives and lower barriers to entry
- The landlords were willing to provide significant tenant improvement allowances
- National & Regional restaurant chains stopped nearly all expansion plans for their sit down restaurants
- Nation & Regional restaurant chains wanted to reduce their SF/footprints for their sit down restaurant concepts
- Vacancy in typically fully occupied submarkets for prime end cap restaurant spaces finally had available inventory to choose from- North Scottsdale, Arrowhead, Ahwatukee, Central Phoenix…
- Adaptive Re-Use of buildings in the core trade areas of Phoenix, Central Phoenix, Arcadia & Scottsdale enabled local restaurants to create unique dinning experiences that typical chain restaurants are unwilling/unable to do.
Because of the items mentioned above many of the amazing local restaurateurs in Arizona were able to expand their brands and develop unique dinning concepts during the downturn by increasing their presence in the market and growing into hot new areas like downtown Gilbert, AZ.
A few of the most notable local restaurant groups that grew their brands during the great recession were:
- Old Town Group – Stingray Sushi & Morning Squeeze
- Upward Projects – Postino, Federal Pizza, Windsor & Churn, & Joyride Taco House
- Fox Restaurant Concepts – The Yard (Culinary Dropout), True Food, Arrogant Butcher, Juby True.
- Over Easy – added several locations
- Oregano’s Pizza – added several locations
- Humble Pie – added several locations
Notable local operators that opened or expanded during the great recession were:
- Chris Bianco – Italian Restaurant, Pizzeria Bianco, Bar Bianco
- Aaron Chamberlain – St. Francis & Phoenix Public Market
- Doug Robson – Gallo Blanco & Otro Café
- Justin Beckett – Beckett’s Table
- Aaron May – Iruna, Mabel’s on Main, The Lodge
- Pavle Milic – FnB, the Bodega (joined Charleen Badman of Rancho Pinot)
- Tomaso Maggiore – Tommy V’s Osteria & Pizzaria
- Payton Curry – Welcome Diner, Digestif, Brat Haus
Matt Milinovich– Partner | 602.778.3830 | firstname.lastname@example.org
Brad Balbo– Sr. VP | 602.778.3831 | email@example.com
Source: Strategic Retail Group