Recently, two East Greenwich restaurants on Main Street abruptly closed their doors.
The story is that in mid-May, The Grille on Main, a mainstay on the East Greenwich restaurant row for nearly 25 years, without warning closed operations. Patrons who showed up at the casual eatery and bar were greeted by a locked door and a printed sign taped to it: “Due to a legal dispute with our landlord and the inability to renew our lease with them we have been forced to close our doors.”
The drama was heightened when combined with the story of the closing of the Grille’s former sibling restaurant across Main Street, Johnny Granata’s, which was probably best known among its many iterations as Post Office Café. Both places shared ownership and from time to time, chefs, going back to the mid-1990s. Granata’s closed in February, explaining on its website circumstances relating to a “plumbing issue” led to the shutdown. The restaurants have not been commonly managed since 2010.
A blogger news site in town went digging and came up with a timeline of events that very likely led to the Grille’s closing, which had little to do with food, drink, service, ambience, tips or menus. In short, business was still good for the most part. In Granata’s case, the blogger stated the cause was likely due to changing guest expectations and needs.
Both scenarios were addressed by 38-year restaurant veteran Richard Sardella, who was asked to comment on the closings and the state of Rhode Island’s restaurant business in general. Sardella’s Ristorante Italiano opened in Newport in 1980. On my radio show recently, Sardella announced a renovation and expansion with a new function facility focusing on weddings and banquets – two major growth areas in Newport, as well as throughout Rhode Island.
As a restaurateur, Sardella has just about seen it all. He began by citing the heart of the Rhode Island restaurant industry – the independent owner-operated business. Sometimes the owners are partners, at least at the start.
“Partnerships sometimes do not work out,” he said. “Personalities clash. It is very much like a marriage.”
This comparison is a common one in the restaurant business.
“[Your restaurant] can look busy, but there are many other factors involved. The bottom line is always the bottom line. When expenses exceed income, that is not a formula for success,” he said.
Without naming names, he recalled a past restaurant closing precipitated by a landlord demanding an immediate and sharp increase in rent. He gave examples of how suppliers such as liquor wholesalers can exercise legal means to recoup losses such as contesting license renewals. Back taxes owed is not an uncommon occurrence. Both can result in an owner having to come up with a large lump sum to settle a debt, which becomes a burden that cannot be overcome.
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RESTAURANT AMBASSADOR: Robert I. Burke, owner of Pot au Feu restaurant in Providence, says Rhode Island charges more than $25 million in meals taxes but none of that money directly goes to promoting tourism and promotion of the hospitality industry in the state. / COURTESY ROBERT I. BURKE[/caption]
Robert I. Burke has been an ambassador for the state’s restaurant industry from his iconic Pot au Feu restaurant for decades. He says the state is likely the cause: “While I do not know the particulars of these [two] restaurants, Rhode Island charges more than $25 million in meals taxes but not a single penny [directly goes] to promoting tourism and promotion of the hospitality industry. Our state is obsessed with giveaways for giant out-of-state corporations, while piling taxes, fees, permits, licenses and regulations on small-restaurant owners.”
The state of the restaurant business in Rhode Island is steady growth. There are still 2,786 “eating and drinking place” locations in the state, according to the National Restaurant Association, of which the Rhode Island Hospitality Association is a member.
The association counts 57,000 food service jobs in Rhode Island as of 2016. It projects the number will grow by more than 6 percent over the next decade.
Bruce Newbury’s Dining Out radio talk show is heard Saturdays at 11 a.m. on 1540 AM WADK, through the TuneIn mobile app and via smart speaker. Email Bruce at Bruce@brucenewbury.com.