Jennifer Johnson thought West Egg would be around forever. She opened the restaurant with her husband, Ben Johnson, in 2004 in an old warehouse. There were few other restaurants in the area besides Bacchanalia, Figo Pasta and Taqueria del Sol, but that didn’t stop West Egg from becoming a top brunch destination where diners waited an hour for churro waffles.
Twenty years later, faced with a lease renewal, Johnson decided not to sign on for another five to 10 years. Remote work had slowed down weekday business, and an increase in takeout orders meant fees for West Egg and fewer diners lingering over Bloody Marys.
The restaurant’s closure in December stunned Atlantans who considered it a fixture of West Midtown. Also stunning, it was just one in a wave of closures: Superica, Elsewhere Brewing, Cultivate, Le Fat and Humble Pie all closed within a few months of each other.
The closures have left diners wondering: What’s going on in West Midtown, and can restaurants survive there? The answer lies in a complicated blend of shifting real estate, infrastructure challenges and mismatched diner expectations.
Credit: bandres@ajc.com
Credit: bandres@ajc.com
West Midtown’s real estate shift
Before West Midtown had its moniker, it was a gritty, industrial area on the edge of town comprising empty warehouses and the Northside Tavern. The rents were relatively low, and in Johnson’s mind, the neighborhood felt like a blank slate. She and her husband took a risk on an area that had almost no foot traffic but low overhead costs, and it paid off; they grew alongside the neighborhood. Today, however, the area is home to large-scale mixed-use properties that drive up rents and cater to national brands with deep pockets.
The area’s redevelopment ramped up in 2008 with the Westside Provisions District, born out of a partnership between White Provision (where West Egg moved in 2010) and Westside Urban Market. More developments followed, including Star Metals District, Westside Paper and the Interlock.
These mixed-use projects, which combine retail, office and residential spaces, typically require restaurants to fill large footprints. Culinary Dropout, for example, spanned 12,000 square feet. Developers prefer larger spaces, explained Edie Weintraub, founder of real estate firm Terra Alma, because it’s easier to manage one tenant than three. While restaurants’ per-square-foot rental rates in West Midtown are on par with other popular neighborhoods like Inman Park, larger spaces result in higher rental fees for restaurant owners.
Further, the concentration of new developments means opening a restaurant here comes with high up-front costs compared with opening a restaurant in an existing space. Restaurateurs in brand-new spaces must cover expenses like the installation of grease traps and venting systems that run into tens of thousands of dollars — and that’s before taking into account other equipment and interior design.
“It is a huge up-front investment, which is why in a lot of new developments, you’re seeing more national brands than you are local and regional brands because these folks have a construction team,” said Weintraub. “They know how to negotiate these terms or they have the credit that a lot of these developers want.” Some independent restaurateurs seek out “second-gen” spaces, where the key equipment like hoods and walk-in coolers, are already installed, bringing down some of those initial costs.
As development progressed, West Midtown’s restaurant landscape changed. Stalwarts of the scene like Miller Union still thrive, but the influx of corporate-backed chains has left some diners underwhelmed. Chains may offer convenience and consistency, but that doesn’t always translate to excitement or loyalty. Of the recent closures, about half were national or regional chains, including Culinary Dropout, Snooze A.M. and Boxcar Betty’s.
Credit: Courtesy of Erik Meadows
Credit: Courtesy of Erik Meadows
“I do think Atlantans tend to skew toward homegrown, local, independently owned businesses,” said Steven Satterfield, co-owner of Miller Union and a James Beard award-winning chef. “I think that’s what makes us diverse and interesting as a city.”
Pairing the rental cost of a large space with the initial investment expenses associated with a new restaurant build out means many of these West Midtown restaurants faced significant costs to cover before becoming profitable.
Credit: arvin.temkar@ajc.com
Credit: arvin.temkar@ajc.com
Traffic and parking woes
When Jason Liang decided to open Lucky Star in the Star Metals District, he knew that traffic on Howell Mill Road was an issue. “It’s always that one lane on each side, and when it gets busy, you’re going to be stuck there awhile,” he said. To make the location work, Liang determined that Lucky Star would be open all day and offer delivery.
Traffic in West Midtown has never been easy, but as high-rises sprout up, traffic has become more congested. Even if diners want to support West Midtown restaurants, getting there can be a headache, especially without a MARTA station nearby. There are plans to make the area more walkable with paths, such as the Beltline’s northwest trail, which is set to complete in the fall, and the Woodall Trail, a segment of the Silver Comet Connector, which currently runs behind Star Provisions.
“I think ensuring that people can walk from place to place and bike from place to place is something that’s going to introduce more foot traffic and make clientele more sustainable,” said Clio Andris, an urban planning professor at Georgia Tech.
Credit: arvin.temkar@ajc.com
Credit: arvin.temkar@ajc.com
Another hurdle is parking. When Liang opened Lucky Star late last fall, he initially faced backlash from customers frustrated by the lack of validation for $4 per hour parking. “After these closures, the landlord and management sat down with us, and we discussed together on how to make the whole area more friendly so people will come in,” said Liang. Now Lucky Star validates parking up to two hours.
For restaurants that don’t validate, the cost of parking combined with the traffic can make the dining experience all the more draining. A $26 meat lovers pizza at Humble Pie might feel reasonable if there’s free parking, but add in traffic and $10-$20 in parking and it’s a harder sell — especially with Antico down the road.
Credit: Aaliyah Man
Credit: Aaliyah Man
Looking ahead
By rapidly expanding West Midtown, developers concocted a dizzying cocktail. On the diner side, an abundance of lackluster dining options with high menu prices elicits underwhelming demand, along with miserable traffic and high parking costs. For restaurateurs, there’s high initial investment costs to recover paired with high rents (not to mention labor and supply costs) forcing them to charge high menu prices. It’s a classic misalignment between buyers and sellers.
It’s not all gloom for West Midtown, however. It continues to evolve. Satterfield and his business partner, Neal McCarthy, opened Miller Union in 2009, drawn to the area’s then-affordable rates and the area’s edginess. Their Michelin-recognized restaurant thrives, in part because of free parking and a steady flow of dining business from convention-goers.
Restaurant closures are painful, but an increase in second-generation spaces means that more independent restaurant owners have a chance of opening. Avize, for example, moved into the former Nick’s Westside space, showing how closures can bring opportunities. Weintraub remains optimistic.
“I’m just very bullish on our city bouncing back smoothly from the closures of these restaurants,” she said. “I feel like there’s an opportunity for fresh new operators to come in.”
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