Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Why these nine Encinitas restaurants are closing

Retirement, fire, property taxes, competition, franchise fees, poor economy

Noodles and Company shuttered
Noodles and Company shuttered

What’s happing to restaurants on Encinitas’ El Camino Real? In the last two months, eight restaurants have closed in the ten blocks between Encinitas Boulevard and Leucadia Boulevard.

The latest being on November 25. The owners of the Greek American Family Restaurant, opened since the 1980s, reportedly wanted to retire.

Gone are franchised or corporately owned restaurants of Noodles and Company, Subway, and Firehouse Subs. Also out of business, vacant, and up for lease are the former locations of locally owned businesses Pie Craft, Swirls Frozen Yogurt, and 2 Good 2 Be Bakery. (The McDonalds in the Encinitas Ranch Town Center was closed three weeks ago due to fire. Its expected to be reopened.)

Sponsored
Sponsored

Steve Amster, the 23-year owner of Garden State Bagels, across the street from three of the closed restaurant sites, says the reason is rapidly raising rents. He says even in a high real estate market, shopping centers are being bought and sold. “Every time a center is sold, the Proposition 13-controlled property taxes reset,” said Amster. In his 16-unit center, which changed hands recently, the new owner’s property taxes were adjusted upward radically. “Rents go up to cover the increase, and it forces businesses to leave,” he said.

Opened since 1980, when asked why two restaurants next door to his Subman sandwich shop went out of business, owner Tim Lee said, “There’s too much competition. Too many restaurants around.”

In the case of the closed franchised restaurants, a nearby 7-Eleven owner says the corporations may also be the cause of the closures. “They [franchisors] take their franchise fees off the top, whether or not the owners are making money.

She gave an example of 7-Eleven’s long running 79-cent Big Gulp soft drink promotion pointing out that the corporation doesn’t give a discount or credit to help the owners cover the loss in a low-cost promotion. “We still have to pay our employees, buy the products from the company at their franchisee pricing, and all the other expenses.”

Long-time restaurateur Gerry Sova, owner since 1970 of Capt. Keno’s Restaurant on Coast Highway 101, says he believes the reason for the closures is the economy is not as good as we are being told. Amster and the 7-Eleven owner agree. The 7-Eleven owner says she has had to bring in family to help out. “My store is worth half of what it used to be. We couldn’t sell it if we wanted to, she said.”

Amster believes the closures may also be a sign that a recession is coming, but added “If Trump stays in office, it won’t be as bad as 2008,” pointing to the continuing rise in record levels of the stock market and low unemployment rates.

As of press time, a ninth El Camino Real restaurant announced it is throwing in the towel. Chili’s Bar & Grill, located at the Encinitas Ranch Town Center on the corner of Leucadia Boulevard, will be closing on January 3.

The latest copy of the Reader

Please enjoy this clickable Reader flipbook. Linked text and ads are flash-highlighted in blue for your convenience. To enhance your viewing, please open full screen mode by clicking the icon on the far right of the black flipbook toolbar.

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Kaylee Daugherty, Pinback, Chorduroy, Moondaddy, and Mr. Tube & the Flying Objects

Solos, duos, and full bands in Mira Mesa, Del Mar, City Heights, Little Italy, East Village
Next Article

Jacobs Music Center Grand Opening

The concert did what it was designed to do
Noodles and Company shuttered
Noodles and Company shuttered

What’s happing to restaurants on Encinitas’ El Camino Real? In the last two months, eight restaurants have closed in the ten blocks between Encinitas Boulevard and Leucadia Boulevard.

The latest being on November 25. The owners of the Greek American Family Restaurant, opened since the 1980s, reportedly wanted to retire.

Gone are franchised or corporately owned restaurants of Noodles and Company, Subway, and Firehouse Subs. Also out of business, vacant, and up for lease are the former locations of locally owned businesses Pie Craft, Swirls Frozen Yogurt, and 2 Good 2 Be Bakery. (The McDonalds in the Encinitas Ranch Town Center was closed three weeks ago due to fire. Its expected to be reopened.)

Sponsored
Sponsored

Steve Amster, the 23-year owner of Garden State Bagels, across the street from three of the closed restaurant sites, says the reason is rapidly raising rents. He says even in a high real estate market, shopping centers are being bought and sold. “Every time a center is sold, the Proposition 13-controlled property taxes reset,” said Amster. In his 16-unit center, which changed hands recently, the new owner’s property taxes were adjusted upward radically. “Rents go up to cover the increase, and it forces businesses to leave,” he said.

Opened since 1980, when asked why two restaurants next door to his Subman sandwich shop went out of business, owner Tim Lee said, “There’s too much competition. Too many restaurants around.”

In the case of the closed franchised restaurants, a nearby 7-Eleven owner says the corporations may also be the cause of the closures. “They [franchisors] take their franchise fees off the top, whether or not the owners are making money.

She gave an example of 7-Eleven’s long running 79-cent Big Gulp soft drink promotion pointing out that the corporation doesn’t give a discount or credit to help the owners cover the loss in a low-cost promotion. “We still have to pay our employees, buy the products from the company at their franchisee pricing, and all the other expenses.”

Long-time restaurateur Gerry Sova, owner since 1970 of Capt. Keno’s Restaurant on Coast Highway 101, says he believes the reason for the closures is the economy is not as good as we are being told. Amster and the 7-Eleven owner agree. The 7-Eleven owner says she has had to bring in family to help out. “My store is worth half of what it used to be. We couldn’t sell it if we wanted to, she said.”

Amster believes the closures may also be a sign that a recession is coming, but added “If Trump stays in office, it won’t be as bad as 2008,” pointing to the continuing rise in record levels of the stock market and low unemployment rates.

As of press time, a ninth El Camino Real restaurant announced it is throwing in the towel. Chili’s Bar & Grill, located at the Encinitas Ranch Town Center on the corner of Leucadia Boulevard, will be closing on January 3.

Comments
Sponsored

The latest copy of the Reader

Please enjoy this clickable Reader flipbook. Linked text and ads are flash-highlighted in blue for your convenience. To enhance your viewing, please open full screen mode by clicking the icon on the far right of the black flipbook toolbar.

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

More on San Diego inventions – Spike Bite and disappearing ink

The scandal of county supervisors at the library
Next Article

Big bugs early in the season – Wahoo bonanza off Mag Bay

Bluefin at the Coronados
Comments
This comment was removed by the site staff for violation of the usage agreement.
Dec. 16, 2019
This comment was removed by the site staff for violation of the usage agreement.
March 16, 2020
This comment was removed by the site staff for violation of the usage agreement.
March 17, 2020
This comment was removed by the site staff for violation of the usage agreement.
May 22, 2020
This comment was removed by the site staff for violation of the usage agreement.
Sept. 10, 2020
This comment was removed by the site staff for violation of the usage agreement.
Dec. 8, 2020
This comment was removed by the site staff for violation of the usage agreement.
Jan. 4, 2021
Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.

This Week’s Reader This Week’s Reader