Categorized | Business, Featured, Restaurants

In downturn, Harlem sees hope in opening restaurants

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(Photos by Vadim Lavrusik)

By VADIM LAVRUSIK

After running a small cupcake shop in the West Village for three years, Tonnie Rozier decided to come back to his roots by opening up a second shop in Harlem.

Rozier, 40, said he hadn’t considered opening up a shop in Harlem because the rent always seemed so high. But when a friend approached him with a location off Lenox Avenue in Central Harlem last spring with a great rent price, he couldn’t resist.

He considered the fact that he was taking a risk with the recession taking a toll on small and big businesses alike. But Rozier was looking further ahead, and already noticing new businesses moving into the neighborhood. And it was a homecoming for the Harlemite who grew up and has lots of family there.

Tonnie’s Minis Opens in Harlem (Audio by Vadim Lavrusik)

“Harlem has been on its way back for many years now. And I saw the vision, but never thought it would become what is has become today,” Rozier said.

Though there’s more than 40 cupcake shops in Manhattan, Tonnie’s Minis is the first in Harlem. But it’s not the only first for a neighborhood that is seeing new food businesses (map) opening up and the community buzzing that these are signs of economic recovery.

Part of the buzz stems from new jobs that these new restaurants will create. Applebee’s alone is hiring 250 new workers for next week’s opening off 125th Street. The neighborhood is also awaiting the openings of several restaurants off Lenox Avenue, including a Jamaican and soul food restaurant called Jams, rotisserie chicken shack Spinners, and OneBar, a high-scale bar.

Though the exact number of restaurants opened in Harlem in the last year was unavailable, Community Board 10 has approved 49 liquor licenses so far this year.

Franc Perry, chairman of Community Board 10, which represents Central Harlem, said though he didn’t want to jump to conclusions on what that means, he certainly is optimistic about the opportunities it brings into Central Harlem – a neighborhood with an unemployment rate topping 20 percent. The city’s overall rate is 10.3 percent.

Though there has been a spurt of restaurants openings in Harlem, Andrew Rigie, director of operations at New York State Restaurant Association, said there is no doubt that the economy has still created a dip in restaurants’ sales. People are cutting back on going out, and one would think that Harlem would be worse off than other neighborhoods with such a high jobless rate. Though more new restuarants are opening, those that have been open longer have better chances of weathering the stark economy because they already have a customer base, experience and operating capital, Rigie said.

Harlem welcomes ‘Eatin’ good in the neighborhood’

So why would anyone want to open a restaurant during such economic turmoil, and why in Harlem? For Zane Tankel, CEO of Apple-Metro, which operates 34 Applebee’s locations in the New York metro area, the answer is simple. Demand in Harlem, plus cheap rent, a dash of risk, and years of experience is why Tankel is opening an Applebee’s on 125th Street.

“I think it is an underserved community,” Tankel said. “There are few places there right now where a large group of people can go in and sit down and get some good food for a reasonable price.”

Damaa Bell, who writes the UPTOWNFlavor blog on food news, said she thinks the new Applebee’s will be successful in Harlem because there is a shortage of restaurants that can accommodate large groups.

“When you think of dining in Harlem they are often small venues that can accommodate up to 10 diners max. An Applebee’s would be popular with families,” Bell said.

Bell points out that an Applebee’s just opened in the Marble Hill area has been successful because it is the only eatery of its type in the neighborhood, which she says is similar to Harlem.

Tankel said he also hopes he can attract some late-night customers. Though many restaurants in the area close around 9 p.m., Applebee’s will be open until midnight on weekdays and 1 a.m. on weekends. He acknowledges that maybe there is a lack of late-night demand or owners worry about crime, but said that is something he will have to re-evaluate after seeing how business goes.

“We’ll see how it pans out because we’re not immune to the economy, but we’ve definitely made the adjustments,” Tankel said. Though sales are down a bit at some of his locations, Tankel said they attract people by offering them value deals like bundling menu items with a $20 deal for an appetizer and two entrees. This keeps the total bill higher for the restaurant, but is still a good deal for the customers, he said.

On Tuesday, the restaurant’s hiring center was full of people filling out applications for the 250 full- and part-time positions available. The Labor Department reported Friday that the national jobless rate had dropped from 10.2 to 10 percent, the strongest report since the recession began – a glimmer of hope for those that have recently lost jobs.

Jeffrey McCaskill, 20, stopped in between classes at The College of Technology to fill out an application for a cook. McCaskill, who is currently unemployed, said he needs to get a job to help pay the family bills.

He’s predicting the restaurant, which sits at the corner of 125 Street and 5th Avenue, will be really busy despite the downturn.

“Sure people are struggling, but I think you’re starting to see more places opening up and they’re starting to build again,” he said. “It’s great. It gives a chance for people to get a job.”

McCaskill is one of 5,000 people that had filled out applications as of Thursday, according to Tankel.

“I hope I get it,” McCaskill said.

Real estate and a developing neighborhood

Though Tankel had been looking to open a franchise in Harlem for about six years, each time a potential location came up he was faced with obstacles in construction or price.

However, with the drop in real estate prices, rents in the neighborhood have gone down dramatically too, which is why Tankel took advantage of the location, he said.

Charles Belanger, a real estate broker turned restaurant owner, knows that better than anyone.

“The market obviously collapsed,” he said. “So I went into the chicken business.”

Belanger, who was a broker for more than 20 years in Manhattan, took his store front real estate office off Lenox Avenue and turned it into a rotisserie chicken and sandwich shop. On Thursday, he was working on cleaning the entryway of the shop on its first day open. Customers slowed to see what the new restaurant had to offer, some eyeing the side real estate office signs still visible from its previous incarnation..

Belanger already had the location and didn’t want to just give up on the space. A food business made sense for the neighborhood, he said.
“People gotta eat.”

Because it is a low-income neighborhood, he said it wouldn’t make sense to open an electronics store, which would be difficult to compete with a big box store that gets its products less expensibely from overseas.

“You can’t ship a roast beef sandwich from China though,” he said.

Belanger said he decided to stay in Central Harlem because of the growth in real estate development and businesses the neighborhood has seen in recent years.

“Harlem does have a bright future,” he said. “It’s an area in Manhattan that has seen a lot of growth in recent years.”

He said a combination of factors like city tax breaks contributed to the growth. Also, The Upper Manhattan Empowerment Zone Corp. has given $2.5 million in loans over the last 12 years to restaurants in Harlem, giving them the necessary cash to get started.

But most residents will point to the Clinton Foundation’s move into the neighborhood and its sweeping efforts to improve the neighborhood. Last year, the foundation launched the Harlem Restaurant Program, which used public funds and tax incentives to teach restauranteurs in the neighborhood better business skills.

Richard Howard, who stops at Rozier’s new cupcake shop almost eveyday after he picks his kids up from school, said ever since Clinton’s foundation came to Harlem a lot of new businesses moved into the neighborhood.

“I think that Harlem has kinda become the new mecca of new businesses,” Howard said. “It’s becoming like a SoHo or Delancey street. Well, now it’s Harlem.”

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This post was written by:

Vadim Lavrusik - who has written 7 posts on NY Food Chain.

Vadim Lavrusik is a digital storyteller who is currently pursuing a Master of Science in Digital Media at the Columbia University Graduate School of Journalism. He's reported for publications like the Star Tribune, Mashable.com, The Minnesota Daily (where he also served as editor), and the Mpls./St. Paul Business Journal. He also currently contributes to Poynter Online's E-Media Tidbits.

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One Response to “In downturn, Harlem sees hope in opening restaurants”

  1. Rebecca says:

    Though I live in Iowa, I found this story to be very interesting and a reflection on people who don't give up, people who refuse to be defeated by their circumstances and people who maintain their faith and hope!

    Good article!

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