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Taco Bell Cantina and Qdoba. (Photo: Allan Lengel)
The once-vibrant dining scene along downtown Royal Oak's main drag is starting to look a bit like a graveyard.
Paper hangs in the windows of what was once Taco Bell Cantina. A "For Lease" sign is up at the former Qdoba. Other Main Street restaurants that have closed within the past year or so include Pieology Pizzeria, B Spot Burgers, Andiamo, Cantina Diablos, Red Fox English Pub, and Blackfinn. And restaurants aren't the only shuttered businesses: A pair of empty shops at the corner of Fourth Street add to the ghostly vibe.
There are a variety of reasons behind the closures. Some business owners have blamed a parking shortage caused by new development near the public library.
Royal Oak's head of economic development, meanwhile, says businesses like Qdoba left due to rent increases, as the new development drives up property values.
"The market dictates a lot of this," said Economic Development Director Todd Fenton. "As more people visit and frequent Royal Oak, more people want to invest in the city, and as more people invest, rents will go up, opening the door for investments that weren’t contemplated here and pushing others that were here out."
That has changed the face of downtown over the years, transforming the once-hip commercial district into a place made up of restaurant chains and more expensive dining options.
"We've gone from a $5 pitcher town to a $5 pint town," said Fenton.
Meanwhile other restaurants that closed suffered from slow sales for various reasons. Taco Bell Cantina was never given permission from the city to serve booze, a death knell for its concept. Sales had been declining at Andiamo for a decade and slowed to the point of no return when the construction project began, the head of that restaurant's group told Crain's.
Restaurants that "continue to offer an exciting experience and change it up" are doing well, said Fenton. He pointed to Ale Mary's and its sister restaurant, Tom's Oyster Bar, which he said reported 2018 as their strongest sales year yet. Adam Merkel, the man behind a restaurant and bar to open in the building that housed Diablo's and Red Fox called his concept a "welcome change to that space."
There are plans for new restaurants at nearly all of the closed sites, Fenton said. The owner of the building that houses Pieology is picking between several concepts, Diamond's Steak & Seafood has already opened where Diablo's was, and upstairs, a bar called Pinky's is nearing completion.
"We expect we’re going to have a healthy spring with openings," said Fenton, who doesn't see the turnover as high. There are dozens of restaurants in downtown Royal Oak.
