Hillcrest is one of the most popular dining destinations in San Diego but many in the community have expressed concern about the number of restaurants that have opened and closed in recent years. Fifth Avenue between Robinson and Washington has been a particularly hard hit area with six vacant storefronts, and in the last several years alone at least 52 restaurants have closed in the Hillcrest area.
San Diego LGBT Weekly contacted the Hillcrest Business Association to ask “What do you believe is causing the restaurant turnover? Interim Executive Director Ben Nicholls said, “A lack of parking or a perception of a lack of parking is certainly a problem in certain locations in Hillcrest. The biggest issue … is the lack of new residences being built in the neighborhood.” Nicholls added, “Hillcrest doesn’t have a vacancy problem at all, despite what you might see when you visit the neighborhood.” He pointed to restaurants that have survived like the Salt & Cleaver, Heat and Great Maple who have all “engaged the neighborhood,” said Nicholls. He added that Hillcrest has a “great group of (potential) customers who want to try new things.” Unfortunately, the 52 restaurateurs who were not successful might have a different view.
LGBT Weekly decided to poll the over 16,000 Pride cardholders who frequent the many businesses within 92103, 92104 and 92116.
The top five driving factors to try a new restaurant were the cuisine, price, location, special offers/coupons and parking.
Survey respondents’ favorite neighborhood for dining was not even close: 52% chose Hillcrest, 9.9% North Park, and 4.9% said downtown was their favorite dining destination.
We asked Pride cardholders why they believed the 52 representative restaurants closed. Their responses were illuminating.
Based upon survey responses, there should be more Mexican restaurants than Sushi places because that’s what the people want. In Hillcrest, this does not hold true.
The chart above illustrates that either sushi restaurants are overrepresented based upon consumer preference, or conversely, Mexican and Italian restaurants are underrepresented. What is the makeup of the remaining 150 eating establishments? American food, delis, sandwich shops, other ethnic food, and of course, bar food; all competing for the same Hillcrest dollar. The first rule in business is who is your customer? If a restaurateur does not understand the preferences of those who frequent and live in Hillcrest, their restaurant cuisine selection may not match what potential customers want.
According to the survey results, potential customers believed that the restaurants did a poor job of marketing their business. Whether it was an introductory offer/coupon, traditional advertising or social media, survey respondents felt that most of the closed establishments never asked for their business.
In essence, survey respondents simply said that there was not enough advertising or introductory offers to induce them to try a new restaurant. Which explains the popularity of online coupon offers and discounts; these services often help a restaurant get the word out efficiently and at a low cost.
To illustrate this, the survey asked each respondent, “We want to know whether you have dined at the following 52 Hillcrest restaurants prior to their closing. Please answer for each restaurant listed.”
Below is an example of the response for the restaurant Bite:
The score of 1.6 indicates that the average survey respondent had heard of the restaurant but had never dined there. Of the 52 closed restaurants, only two had been visited at least once by the average respondent.
22.3% of survey respondents also felt that the quality of service and food was a factor in the Hillcrest restaurant turnover. What was most concerning was the answer to the following survey question:
50.2% of diners only give a restaurant one chance; if they experience bad service or food that is the end of the relationship. Social media and the Internet give a diner the ability to spread the word of their bad experience easily to all their friends and beyond. The recommendation to all restaurateurs; get it right the first time.
On the issue of parking Nicholls said, “Hillcrest has a thriving restaurant community, but we do need to address the perception of a parking problem. The Uptown Community Parking District is doing that. We also need to find places for our customers and employees to live here in the neighborhood. This will address our transportation and congestion issues.”
While the parking problem is a known issue, you can expect continued restaurant closures in the short term because there is not an easy, fast solution to the parking problem. So what can you do? Vow to try a new restaurant one out of every four times that you eat out.
In the end, the reason for restaurant failures in Hillcrest are partially due to neighborhood factors; too many restaurants chasing too few Hillcrest dollars and a parking problem. However, there are also issues created by restaurant owners; not reaching out to customers through effective advertising and introductory offers/discounts, as well as not offering food and service that meet the requirements of the Hillcrest diner. In order to ensure that the restaurant community thrives, the community also needs those who live in and frequent Hillcrest to get out of their bubble and try new places.
No one wants to look at empty storefronts in Hillcrest. We all have responsibilities to guarantee that Hillcrest remains one of the restaurant crown jewels of San Diego; the Hillcrest Business Association, restaurant owners and Hillcrest diners.
Restaurant Closures in Hillcrest
Partial List
Abbey Café
Babbo Grande
Bai Yook Thai
Banana Leaf
Bayou’s Ethiopian
Bite
Brian’s American Eatery
Buonissimo 2
Café Barbera
Caffe Vergnan
California Cuisine
Celadon
City Deli
Corvette Diner
Cote Sud
Dish
Eden Restaurant
Freebirds World Burrito
French Concession
Inn at the Park Restaurant
Jersey Mike’s
Kasi
Kemo Sabe
La Focaccia
La Salsa (2009)
La Vache
Letty’s Bean Shack
Lotus Cafe
Naked Pizza
Ono Sushi
Parallel 33
Pasha’s Mediterranean Café
Pick Up Stix
Pink Noodle
Pita Jungle
Pita’s Mediterranean Grill
Pizza Fusion
Pizza Nova
Rock Fire Grill
Sambuca Italian Bistro
Shawarma
Sloppy Burritos
Smashburger
Sushi Itto
Taste of Szechuan
Terra
The Big Easy
The Snooty Asian
Tre Porcellini
Voyou
Yakitori Izakaya
Yu Me Ya Sake House
After reviewing the partial list of restaurant closures, I noticed many of them had been in business for many years and had just run their course. Others definitely were either too exotic to attract enough business to turn a profit or didn’t connect with the community. Stull others just didnt take the time to market their venue or were not a good value. The list did include some restaurants that closed MANY years ago (e.g. California Cuisine) so the turn over may not really be as drastic as the article points out. Some of the closures were due to lost leases and the like.
I agree w/ Mike….Hillcrest is a fascinating study in restaurants and I really appreciate this article. I’m stunned that East Village Asian Diner didn’t make it but so many on the list above were poorly run places that didn’t stand a chance against those proven players who dominate Hillcrest.
Wow, did this article miss the elephant in the room! The problem for restaurants is the same for residents – rents are too damn high! And Ben Nicholls doesn’t see “a vacancy problem at all” – but names 3 restaurants as survivors who have been in business for less than 2 years! Oh, but if there is a problem, it’s because his developer pals haven’t been allowed to turn Hillcrest into the East Village. Nicholls was more honest about rents being the problem 5 years ago, http://sduptownnews.com/uptown-in-transition-there%E2%80%99s-a-pony-in-there-somewhere/ AND http://voiceofsandiego.org/2009/09/11/golden-hill-trying-again-to-reinvent-itself-2
I think Marc hit it on the head. Rent in Hilcrest is high hence more new business openings are happening in North Park. Who can blame them.
There are many parking-challenged neighborhoods across the US that have successful restaurant scenes, the key is allowing more density as Nicholls stated. However there has been no residential construction in Hillcrest since the 2008 “Interim” Height Ordinance that killed development. If you want to blame someone for Hillcrest’s restaurant turnover, look no further than established residents who have closed the door behind them to any new, younger residents.
Regarding parking, many lots are not full during peak hours. Let’s continue increasing awareness of these lots and the free Hillcrest Parking Shuttle, and price on-street parking based on demand, for more turnover – this may be possible with the forthcoming smart parking meters. Also, move parking hours to 10AM to 8PM for more evening turnover.
Meanwhile we can also support alternate transportation, like protected bike lanes and bike share, rapid bus routes, Uber/Lyft/car2go, etc. And finally, stand up to community NIMBYs like HillQuest and demand more housing in a neighborhood perfectly suited for higher density (transit lines, proximity to downtown)… especially for employees so they can afford to live closer to work.
This has nothing to do with parking. The good places are surviving and thriving. I’ve been to several places on the closed list… Once. Please, stop blaming the lack of parking on places closing. Get better food, different food, or a real niche for the neighborhood.
“…move parking hours to 10AM to 8PM for more evening turnover.”
While that may improve turnover, it will almost certainly discourage people from visiting between 6pm and 8pm, since currently, on-street, metered parking is free after 6pm.
Not all of the restaurants listed closed. Some of them relocated to areas with lower rent, larger neighborhoods & yes more parking.