Another Restaurant Closes. That Doesn’t Mean The Industry Is Headed For A Crash.
Maura Judkis | Washington Post | July 3rd, 2017
Ripple was the kind of warm, welcoming place that bred regulars like rabbits. It was both upscale and casual, and not overpriced. It won awards and was fondly reviewed. It was filled with people until, gradually, it wasn’t.
“Our sales were down, and they’ve been down over the last couple of years. I don’t know if that means fewer people are going out, or they’re going to different places,” said owner Roger Marmet.
He made the decision not to renew his lease, and the seven-year-old Cleveland Park restaurant served its last meal on June 24. Disappointed fans wondered: Was the bubble to blame?
If you’ve read anything about restaurants in the past six months, you would be certain that they were all doomed. “There’s a massive restaurant industry bubble, and it’s about to burst,” Thrillist proclaimed in December. For independent restaurants, it has already popped, according to an article in Restaurant Hospitality. The fast-casual bubble might be bursting, too, says Nation’s Restaurant News. Locally, Washingtonian cited several restaurateurs who were certain we were in a bubble. Every restaurant closing adds fuel to the fire.
“There is just an insane amount of restaurants opening, and I can’t imagine there’s enough to go around for everybody,” said John Fielding, owner of Soapstone Market and the former Chao Ku, which closed in February.
There are so many places to eat now, all filled with reclaimed barnwood and Tolix stools and poke and — for now, at least — people. Maybe it will last. Maybe they will struggle. But does that make what’s happening a bubble?
‘Chicago’s Only Caviar Bar’ Coming to Humboldt Park’s Bar Marta Space
Ashok Selvam | Eater | June 27th, 2017
Will an oyster bar succeed in Humboldt Park where Bar Marta struggled? The owners of Heritage Restaurant & Caviar Bar hope so, as they’ve taken over Bar Marta’s former space at 2700 N. Chicago Ave. and hope to open in early August, according to a rep. They’re billing it as Chicago’s first and only caviar bar.
Chef Guy Meikle (Nana Organic in Bridgeport) and team will serve breakfast, lunch, and dinner. And in a great comeback story, beverage director Jan Henrichsen (Fat Rice) will create the cocktails. Henrichsen left Fat Rice after a cancer diagnosis. She endured surgeries and radiation therapy which put her “out of commission” for a year. She’s since recovered, and took some low-level consulting gigs.
“I’m clean and clear,” Henrichsen said. “I’m so grateful to the hospitality industry and all the cheffy and server friends that helped out. It really made me feel like it’s a real community.”
Henrichsen has known Meikle since the two worked at Bin 36 Wine Bar in River North and Bin Wine Cafe in Wicker Park and they’ve slowly developed their idea for Heritage. It will be a restaurant that celebrates Eastern European food, a cuisine “that sometimes gets stepped on,” Henrichsen said. While caviar may sound expensive, Henrichsen points to Ukrainian Village grocers that stock the stuff: “It’s not necessarily all fancy,” she said. Heritage intends to serve caviar from a variety of price points.
Food Service Distributors Including Sysco, US Foods Fall On Report Amazon Wants To Enter Space
Jeff Daniels | CNBC | June 23rd, 2017
Amazon may want to dive into food service distribution, potentially shaking up an industry now dominated by three large players, according to a report.
“The risk has increased that AMZN becomes a disruptor to food service distribution models,” said JPMorgan analyst John Ivankoe in a research note published Friday. It said Amazon could do it through building its own operation or through an acquisition of an existing player in the industry.
The report is sparking a sell-off in food service distribution stocks as some investors worry Amazon’s entry would squeeze profit margins in an industry already known for stiff competition and tight margins. And it comes just a week after Amazon announced plans to pay $13.7 billion for Whole Foods, the major organic and natural foods grocery chain.
In trading, Sysco stock ended down 5.4 percent, US Foods fell 3.4 percent and Performance Food Group dropped 1.7 percent. Amazon shares rose fractionally.
On Friday, JPMorgan also removed Sysco stock from the firm’s focus list, citing added risk within the space. JPMorgan pointed out that since the Amazon-Whole Foods deal was announced, Sysco and US Foods shares have been under pressure.
Sysco and US Foods declined to comment. CNBC also reached out to Performance Food Group and Amazon but didn’t hear back at deadline.
Tour Sal’s Trattoria, Another Attempt to Impress Southport with Italian Food
Ashok Selvam | Eater Chicago | June 14th, 2017
The chef behind Butcher & The Burger in Lincoln Park hopes his new Italian restaurant will solve an enigmatic corner in Lakeview that’s struggled to keep tenants. Sal’s Trattoria, 2834 N. Southport Ave., opens tonight and Allen Sternwelier says he’s focusing on great service and affordable prices to hopefully find success. The seemingly cursed space at Southport and Wolfram has been a revolving door for restaurants: Mirador, The Bentley Tavern, Palette Bistro, and the troubled Lucca’s have passed through since 2011.
Sternwelier said he isn’t concerned with the past. “I can only surmise if the previous restaurant operators were doing something right that they would still be there,” he said, as well as that he’s only focused on attracting local families with a casual atmosphere. Sternwelier estimated his crews remodeled about 70 percent of the old Mirador space. He’s confident that the group’s hard work, including countless hours of recipe tasting, will pay off. Take a look at the menu here.
There’s an emphasis on comfort at Sal’s, as Sternweiler isn’t trying to be a downtown or West Loop fine-dining restaurant. There’s even a TV hidden in the corner. “Spiaggia isn’t our competition,” he said. Sal’s will also take a traditional approach to cocktails — he’s not hiring a mixologist.