Charleston Restaurant Report JULY 2020

ON THE MENU
1. Local Restaurant Scene -- COVID19: CORONAVIRUS STILL PLAGUING THE CHARLESTON RESTAURANT INDUSTRY
2. Restaurant Openings, Closings + Coming Soon Lists!
3. National Restaurant Scene – COVID 19: MEASURING THE DAMAGE
4. Available Restaurant Space for Lease -- 49 S. Market Street, Charleston, SC 29401

LOCAL RESTAURANT SCENE
COVID 19: CORONAVIRUS STILL PLAGUING THE CHARLESTON RESTAURANT INDUSTRY
Back in late March, there was hope that the Covid threat could be contained, the curve would be flattened, and an economic re-opening in early summer could bring us back to normal. Three months have passed. PPP loan funds have run their course. Restaurant dining rooms are running at half-seating capacity. An employee tests Covid-positive and the restaurant shuts down temporarily or indefinitely. Full-service establishments have pivoted to a To-Go or Delivery or Outside Seating-only setup. Tack on the additional sanitation and supply costs. Masks / No Masks? How do you continue operating and stay afloat? How do you retain and train employees, much less make customers happy in this environment? There is no guidebook and very little mandatory Covid-related guidance from DHEC.
Based on the recent rise in Covid-positive cases and hospitalizations, this scenario isn't likely to change anytime soon. Restaurant operators will continue to see dramatic shifts in their dining room setup; in staffing / training / retention; and in redefining + fulfilling their missions to create satisfying customer experiences. We have a long way to go before Covid plays itself out. It's going to be a slow, drawn-out process, and unfortunately, there will be a lot more restaurant carnage and closures ahead of us.

RESTAURANT OPENINGS, CLOSINGS + COMING SOON!
Openings + Closings list reflects 2nd Quarter 2020 market activity (April - June):
OPENINGS --
Alvin Ord's Sandwich Shop (West Ashley)
Bar George (James Island -- former Bowties Speakeasy)
Brown Dog Deli (Downtown)
Bumpa's (Downtown -- former Cumberland Street Smokehouse)
Coney Island Hot Weiners (North Charleston)
Eggs Up Grill (West Ashley)
First Watch (Mount Pleasant)
Fuji Sushi (Summerville)
Holy Cow Burgers & Brew (North Charleston -- former Locals)
Ma'am Saab at Workshop (Downtown)
Orlando's Pizza (Mount Pleasant -- former Momma Goldberg's Deli)
Parker's Kitchen (Summerville)
This Little Piggy (Summerville)

PERMANENT CLOSINGS **--
Cane Rhum Bar (Downtown)
Florence's (Downtown)
HoM (Downtown)
IHOP (Downtown)
Jestine's Kitchen (Downtown)
Jimmy John's (Mount Pleasant)
Kickin' Chicken (Downtown)
McCrady's (Downtown)
Mellow Mushroom (Downtown)
Minero (Downtown)
Nana's Seafood (Downtown)
Old Towne Grill (Downtown)
Parcel 32 (Downtown)
R.B.'s Seafood (Mount Pleasant)
Ruth's Chris Steakhouse (Downtown)
Saber's Pizza (Downtown)
Sticky Fingers (Mount Pleasant & Summerville)
Subway (Downtown)
Tattooed Moose (West Ashley)
**This list does NOT include restaurants that have temporarily closed due to COVID...There are most likely many, many more uncounted restaurants that have permanently closed due to COVID. I expect the number of CLOSINGS to continue rising as the COVID pandemic slowly churns through the local economy as sales lag, PPP loan funds run their course, and vendor / tax / rent obligations pile up.

COMING SOON --
While there were many restaurants planning to open between March and September, those plans have been put on hold indefinitely by COVID-19. My tracking list of "coming soon" restaurants, as of late June, still includes more than 50 restaurant projects in some phase of development in the Charleston area. Only a small handful of projects still have their eyes on a summer 2020 opening. Perhaps some of the larger list of projects will come to fruition later this year or next.

NATIONAL RESTAURANT SCENE
COVID-19: MEASURING THE DAMAGE
In March and April, more than 6 million jobs were lost in the national restaurant industry due to Covid-19. As communities started to re-open in May, close to 1.4 million restaurant jobs were added back to payrolls. That still leaves more than 4 million F&B workers on the sidelines. One would expect more F&B jobs to return to restaurant payrolls in June, however, the latest spikes in positive Covid-19 cases in the South and elsewhere will likely put the brakes on many states' economic re-opening plans at the height of the summer tourism season. For restaurant operators, the current operating environment must seem like a roller coaster ride that won't stop.

AVAILABLE RESTAURANT SPACE
LANDMARK DOWNTOWN CHARLESTON RESTAURANT FOR LEASE
49 S. MARKET STREET
CHARLESTON, SC 29401
Critical Restaurant Infrastructure is in place and ready to go!
4,982 Sq Ft in the heart of the Historic City Market
LEASE PRICE -- $36/SF/YR/NNN
Call Thomas Kennedy for details 843.270.5700