Charleston Restaurant Report JULY 2022
ON THE MENU
1. Local Restaurant Scene -- Restaurant Openings-To-Closings Ratio Is Unusually High
2. Restaurant Openings, Closings + Coming Soon!
3. National Restaurant Scene – U.S. Restaurant Sales Still On The Rise
4. Food For Thought -- When Is The Right Time To Say "NO" To A Food Donation Request?
LOCAL RESTAURANT SCENE
RESTAURANT OPENINGS-TO-CLOSINGS RATIO IS UNUSUALLY HIGH
I recorded 27 new F&B establishment openings in the second quarter of 2022 against only 4 closings. I don't catch every single opening or closing in the Charleston metro area, but I am surprised by the low number of closings over the last 12 months. Generally speaking, over the last ten years as the Charleston metro area has grown, the ratio of openings-to-closings has been 2-to-1.
In the first half of 2022, there have been more than 50 openings. I've only heard of 10 closings in that same time period. The second half of 2021 was very similar in that there were 65+ openings and only about a dozen closings. The number of openings isn't surprising, but the super-low number of closings is suspicious. Are there that many restaurants still cycling through PPP funds? Should we expect a rash of closings in the fall + winter once the summer tourist season runs its course? It seems unlikely that such a large percentage of the restaurant operators in this market have now, despite Covid, figured out how to streamline operations and maintain profitability while working with less available staff, higher wages, higher food + supply costs, and rents that don't stop escalating...
RESTAURANT OPENINGS, CLOSINGS + COMING SOON!
Openings + Closings list reflects 2nd Quarter 2022 market activity (April - June):
OPENINGS --
Baguette Magic (Downtown — former WIldFlour Bakery)
Bar on the Avenue (North Charleston)
Bevi Bene Brewing Co. (North Charleston)
Bonny’s Hideaway (Downtown — former King Street Public House)
Cabana Burgers (Mount Pleasant – former Eggs Up Grill)
Cafe Eugenia (Johns Island)
Charleston’s Smallest Bar (Downtown)
Chipotle (Goose Creek)
Cold Shoulder Gourmet (West Ashley)
Co-Op (Johns Island — former Ladles)
Dunkin' (North Charleston)
Heavy’s Barburger (Downtown — former Tattooed Moose)
Holey City Bagels (Downtown — former Five Loaves Cafe)
Islander 71 (Isle of Palms – former Morgan Creek Grill)
Kanji (James Island — former Food Fight)
Laura (Summerville)
Minero (Johns Island – former Fat Hen)
Odyssey Bottle Shop (James Island — former Harbor View Tavern)
Philosophia (Mount Pleasant – former Ichiban)
Pizza Mia (Mount Pleasant — former De Roma’s Pizza)
Rancho Lewis (Downtown – former Workshop)
Rooted (Mount Pleasant)
Sullivan’s Fish Camp (Sullivans Island — former Sullivans)
The Bounty Bar (Folly Beach — former Wiki Wiki Sandbar)
The Garden (West Ashley)
Weezy’s Ice Cream & Cocktails (Johns Island)
Ye Ole Fashioned Cafe (West Ashley — former Famous Toastery)
CLOSINGS --
Blaze Pizza (Mount Pleasant)
Bull & Finch (Mount Pleasant)
Cuban Gypsy Cafe (North Charleston)
The Hold (Downtown)
COMING SOON --
The number of publicly-announced F&B projects on the Coming Soon list that will be coming to market in the near future now stands in the mid-50's. That number is down slightly from the low 60's in 1st Quarter 2022.
NATIONAL RESTAURANT SCENE
U.S. RESTAURANT SALES STILL ON THE RISE
Restaurant sales nationwide have been on the rise every month since February 2021. Now, the sales growth rate appears to be slowing. Guest traffic counts have started to decline as inflation bites into the economy. Menu prices will rise to meet inflation, which will lead to a drop in the overall restaurant value equation for consumers. Restaurateurs will be smart to focus on providing a high-quality customer service experience to help bolster lagging consumer sentiment amidst rising prices. Read more from Black Box Intelligence on Nations Restaurant News here....
FOOD FOR THOUGHT
WHEN IS THE RIGHT TIME TO SAY NO TO A FOOD DONATION REQUEST?
How many times has your restaurant been asked for a food donation for an event? I imagine the answer for most operators is "All The Time!" Without a coordinated charitable giving strategy and plan in place to respond to donation requests, your business might not look so good at those times when you need to say "no". Read more about restaurant donation strategy from Restaurant Business Online here...