Escoba Bistro is Closing Down

[chemgear]

I put this in the Alberta Politics thread but maybe it deserves it's own thread. I'll just remove my post and link it to here.

Escoba is done.

http://calgaryherald.com/news/local-...erty-tax-bills

After two years of punishing property tax bills, a Calgary restaurateur says he’ll be closing his doors after 20 years, unable to keep up with a barrage of escalating costs bleeding his business dry.

But compounded by a provincially-mandated boost to minimum wage, a slumping Canadian dollar, a 45 per cent reduction in sales blamed on the swooning economy and losing half of the parking spaces in front of his restaurant to a bike lane, Hamelin says he has no choice but to close his doors.

“With all these things combined, I actually had to decide we’re shutting down. On June 1, I gave notice to my staff we’re closing our doors on June 30,” he said.

“Everybody has taken their pound of flesh — city hall, the province and even the federal government — and now there’s nothing left.”

[Knut]

Probably could move right now. Sign a much cheaper lease and have more parking spots.

[pylon]

Thanks NDP!

And that isn't tongue and cheek. Get ready for a whole bunch more of this.

[shermanator]

I have to laugh at part of the blame going to a bike lane. A downtown restaurant is not losing a lot, if any, customers because of a bike lane.

[Reaper]

It is too bad that he is closing down but whenever someone uses a minimum wage increase in their list of reasons for doing so I lose a few layers of empathy for them. I know it played a role in his rising bottom line but it always sounds like telling your employees that their efforts are worth less than what is mandated as the lowest amount to be rendered by law. Just my two cents though.

[CaptainCrunch]

Originally Posted by shermanator

I have to laugh at part of the blame going to a bike lane. A downtown restaurant is not losing a lot, if any, customers because of a bike lane.

Serious question, but how do you know? For a lot of customers, if its difficult to find parking they will go somewhere else.

But I agree, we're going to see a lot more of these stories and its really going to accelerate at the start of next year.

I know when I go downtown for meetings, its a ghost town compared to what it used to be.

[CaptainCrunch]

Originally Posted by Reaper

It is too bad that he is closing down but whenever someone uses a minimum wage increase in their list of reasons for doing so I lose a few layers of empathy for them. I know it played a role in his rising bottom line but it always sounds like telling your employees that their efforts are worth less than what is mandated as the lowest amount to be rendered by law. Just my two cents though.

Its a cost increase, and its going to keep jumping up. Its part and parcel with what's causing a business like this to fail.

In the case of middle and upper end places like this, their servers are receiving a lot more in tips anyways.

My brother runs a bar and restaurant in the North, and his waiting staff all make above average incomes even with a low base wage.

[Lubicon]

I call BS on the bike lane and minimum wage rational. Property taxes and the economy are probably the major reasons. Costs got out of hand and sales dropped, same thing that has happened to pretty much any business tied to the oil patch (which they are if they are located downtown). Those that can adapt will survive, those that cannot won't, unfortunately.

[Red]

DT is a ghost town right now. Nothing to do with bike lanes, minimum wage etc. O&G layoffs are to blame more than anything.

[stampsx2]

Originally Posted by shermanator

I have to laugh at part of the blame going to a bike lane. A downtown restaurant is not losing a lot, if any, customers because of a bike lane.

I can tell you I've been spending much less time in that area than I did last year partly because of the parking but more because of the traffic congestion and lane mess on 12th ave sw. I find it much easier to just spend my time in the core.

[PsYcNeT]

Why would anyone go to Escoba when Vern's is right underneath?

[The Ditch]

the west end of downtown is a bit of a ghost town even during the work day week, at night and the weekend there's nobody in that area where they are.

I was actually a bit shocked when I first saw someone renovating the Belfry space, and then also seeing another new restaurant open up there as well beside thi thi, I would put a lot of money on both those restaurants going under by the end of the summer

[puckedoff]

Its hard to compete with the entrees available online these days.

Worst part for you and me is that as businesses close our residential property taxes are going to go up to make up the slack.

[stampsx2]

Originally Posted by pylon

Thanks NDP!

And that isn't tongue and cheek. Get ready for a whole bunch more of this.

It's not tounge and cheek. You can't raise taxes and lower people's disposable income and expect the same results. The ndp is a socialist party. They don't support free market economics. Ndp supporters will tell you how everything is fine.

The trickle down effect is making it's way down.

[Ozy_Flame]

I forgot that place existed. Basically it was overshadowed by the ever-revolving door of the Korean restaurant next door, and the shutdown of the Uptown Theatre.

[calumniate]

Man oh man, I guess you could see this coming and there's likely to be a lot more. That rumour about Bongiorno's was kind of sad.

I'm curious how that Trolley 5 place is going to work out (huge place replacing the old Melrose). It's such a terrible name haha

[CaptainCrunch]

Originally Posted by Lubicon

I call BS on the bike lane and minimum wage rational. Property taxes and the economy are probably the major reasons. Costs got out of hand and sales dropped, same thing that has happened to pretty much any business tied to the oil patch (which they are if they are located downtown). Those that can adapt will survive, those that cannot won't, unfortunately.

Its tough to adapt when your getting hammered on all sides with more hammers coming. Even small businesses outside of the core are starting to push out the same message, its becomes a small business nightmare at this point in time in the city because the only way around it is to increase your prices significantly and that's going to shrink your customer base during bad times.

this owner is spending out of pocket to keep the lights on, he's right in that its an unfriendly environment for him and why should he keep doing it.

the love of your own business can only go so far.

[TheAlpineOracle]

Originally Posted by shermanator

I have to laugh at part of the blame going to a bike lane. A downtown restaurant is not losing a lot, if any, customers because of a bike lane.

You must not spend much time in the area. The bike lane has essentially rendered parking for a couple blocks there impossible, especially for people with any physical limitation. I love that restaurant and used to take my mom there when she was in town. The bike lane ended that because I had to park too far away for her limitations. It's just became way easier to go somewhere else. I still go, but i'd imagine there are lots of people in my mother's situation as well that just decided to go elsewhere.

The smugness of the cyclists in this thread is sure showing.

[East Coast Flame]

Originally Posted by CaptainCrunch

Serious question, but how do you know? For a lot of customers, if its difficult to find parking they will go somewhere else.

I walk by that place every day and there is literally no difference between the parking pre and post bike lanes.

http://imgur.com/BGiRLjK

I found a google picture before the bike lane. Seriously? That is half the parking? What a BS quote totally designed to rile up all the anti-SPENDSHI crowd...looks like it's working too.

[PsYcNeT]

So isn't this just the free market being exercised?

I don't see the problem. It's not like every other restaurant that no one ever goes to closed up. Dog eat dog world man.