Buckhead expands despite recent loss of two restaurants
Published 12:00 am Monday, September 11, 2006
Despite having a premier location at the upscale Buckhead Square shopping center on Campbell Lane, two restaurants – Navajo Taco and Figaros Pizza – have already gone out of business in less than a year of operations since the center opened in July 2005.
“I had two startup restaurants that didn’t make it,” said Tommy Kelly, a real estate agent with Coldwell Banker Commercial, which leases the property, along with Tom Baker. “The restaurant business is a tough business. Some make it, some don’t.”
Kelley said Buckhead Cafe is doing great and there were many customers who come to Buckhead Square despite the closings.
Navajo Taco closed its doors Sept. 3.
The owner, Daniel Montgomery of Nashville, could not be reached for comment.
“I know that he had been in the restaurant business before,” Kelley said.
Figaros Pizza closed around the Fourth of July, according to Kelley.
“There were some other complications – non-business related,” Kelley said.
The owners, Scott Rogers and Brad Daugherty, could not be reached for comment.
Buckhead Square’s current occupants, which take up 15,000 square feet of the 20,000-square-foot shopping center, include Buckhead Cafe, Allstate Insurance, Great Clip salon, Payday Advance, a Sprint store, a UPS store, Coldstone Creamery, CitiFinancial and Top Nails salon.
Paul Reed, owner and manager of Coldstone Creamery, said for restaurants to survive, good management is key.
“If you don’t have good food and quality service, you won’t make it,” Reed said.
It makes Reed somewhat nervous when two restaurants close around the same time, but he said it shouldn’t be a bad reflection on Buckhead Square.
During the last month, Buckhead Square completed its expansion of another 20,000 square feet to bring its total capacity to 40,000.
The Campbell Lane and Nashville Road intersection brings at least 32,000 cars a day, according to recent traffic studies, making the center a prime location for businesses.
Rick Horn, director of the Western Kentucky University Small Business Development Center, said the closings may confuse consumers, who may wonder what is happening.
“But I would think it’s an excellent location for the restaurants similar to what’s closed,” he said. “I can’t say it was the management or the product, but I can’t say it’s the location, either.”
Horn suspects the market for Mexican and pizza restaurants is saturated in Bowling Green and that both Navajo Taco and Figaros pizza may have overestimated how they could penetrate the market and what sales the businesses could garner.
“Mexican (food) and pizza are probably the most saturated food choices at this time,” Horn said.
Horn owned a Godfather’s Pizza franchise in Bowling Green and his other 14 chains are scattered between Louisville and Nashville. At one time, he managed a total of 28 full-time managers and more than 300 part-time employees. Horn bought into the franchise in March 1977 and sold his collection of Godfather’s Pizza franchises in February 1982.
Kelley also believes the market may be close to saturation for Mexican and pizza restaurants, he said.
“My impression is that most of them seem to be doing fairly well,” Kelley said.
As Buckhead Square develops, Kelley is hesitant to lease to start-up businesses.
“We continue to have inquiries on restaurants. There are a lot of independent restaurant owners out there. But we want to make sure we get the right mix,” he said. “Someone that is established, I wouldn’t hesitate (to sign) at all.”
Kelley said he has prospects for new tenants, but nothing is finalized.
“I think that when you look at the traffic in the neighborhood, the area is undeserved from a retail standpoint and there are still a lot of services and products people have to go across town to get,” he said. “I predict that in the next year or two, there will be more retails businesses on both sides of Buckhead Square and in the old mall.”
Buckhead Cafe will begin to make changes to its menu in upcoming weeks to expand its dessert and bagel offerings.
“We’re goning start doing baked bread products,” Buckhead Cafe owner Rick Kelley said. “It’s still a couple of weeks off.”
Rick Kelley said in the restaurant industry it’s important to continally expand products and put variety in a menu.
“We’ve spent a year trying to perfect the concept itself,” he said. “After a year, we’re starting to make changes to the menu which is typical of the restaurant industry. “
– For more information on the Buckhead Square shopping center, contact Coldwell Banker Commercial real estate agent Tommy Kelley at 781-3844.