Sudden Changes In Palm Springs’ Restaurant Scene
Stafford Fredericks opened his art gallery in May. He sold seven paintings already. But, he wasn’t banking on two restaurants across the street — Dink’s and Blue Pear Texx Mexx — to be up for sale.
“Dink’s didn’t do that well,” he said, “and Blue Pear hasn’t had a lot of traffic either.”
The two restaurants exemplify a changing climate in Palm Springs, the most recognizable city in the Coachella Valley among tourists.
Leon’s Bar and Grill at the Indian Canyons Golf Resort lost its lease and must close by the end of this month. On the flip side, Red Tomato & House of Lamb on E. Palm Canyon is scheduled to open soon.
“You can burn yourself out at a restaurant. It’s a 24/7 business,” said Bob Hughes, of Hughes Properties. “If you let it control you, it will burn you out.”
Hughes is the broker for both Dink’s and Blue Pear.
For people who are interested in opening a new restaurant, Hughes had a few suggestions: Consider short-term leases (three years maximum) and have six month’s worth of money to keep the business operable.
“Most vendors are going to ask you for cash upfront until they get you applied credit and a track record,” he said.
Hughes also said some restaurant owners were willing to finance up to 50% of the asking price to the new owners.
LULU California Bistro doesn’t have to worry about a lease. The owners bought the property.
On Saturday, crews put the finishing touches on the place. Opening day is on Wednesday.
General Manager Willie Rhine said he didn’t know why restaurants in town were for sale. But, his company, which also owns Acqua Pazza at The River, believes it has the recipe for success: good food, good service and good prices.
“When the market crashed, we reduced our prices [at Acqua Pazza],” Rhine said. “We immediately introduced the three-course menu. We did that originally to get us through the summer and get us through the worst time. We ended up keeping that all year long.”
Stafford Fredericks hoped business picks up again for Dink’s and Blue Pear. The fall tourist season is coming, and every open business makes a difference.
