Living in LoCo
Uncertain Economy Affects Local Restaurants, Shops
Erica Garman at 2:14 p.m., October 24, 2008 (14 comments)
The worldwide financial crisis hits close to home as more Loudoun businesses close or consider closing because of dwindling customers.
Ron Richards, co-owner of an Image Sun Tanning Center in Ashburn, told me yesterday that his business and a number of other shops and restaurants in the Broadlands Marketplace development are losing money every day and are in danger of shutting down unless the property owner, Van Metre, reduces rents and increases promotion of the strip mall.
"We don't want to step on any toes," Richards said. "But we're in danger of falling apart. They have to do something to work with us."
The Morning Glory papery shop in the Broadlands Village Center is having a going-out-of-business sale. (Photo by Erica Garman)
Richards said he's applied for several small business loans to make it through the economic slowdown, but the banks are not lending right now. (For an interesting read on the local banking economy, check out this recent Loudoun Times-Mirror story.)
Most of the businesses located at the Broadlands Marketplace signed 10-year contracts when the strip mall opened three-and-a-half years ago. Rents are rumored to range from $5,000 to $12,000 a month. (One expert told me that the going rate of retail space in Ashburn these days is $30 to $40 per square foot.)
Lessees were promised that an office building would be built across the street from the mall, which would bring in business, Richards said.
"Now, Van Metre tells us that project is not happening any time soon," he said.
Dr. Mitchell Baron, who owns a dental practice next to Image Sun, echoed Richards' concerns.
"It's 4:45 p.m. on a Thursday," he told me yesterday on the phone, "and there are only three cars in the parking lot."
A restaurateur in the same strip mall, who asked not to be named, said her business is also struggling.
"Our rents need to be adjusted," she said.
Ty Hausch with Van Metre Properties, who is a resident of Broadlands, responded in a phone call this morning by saying that the rents at Broadlands Marketplace are less than those at similar shopping centers in Brambleton, Lansdowne and other storefronts in Broadlands.
"Van Metre has already spent over $100,000 in advertising, direct mail, events and signage to market this shopping plaza, and we are still educating consumers about the businesses here," he said, adding that the planned office building project across the street is on hold due to current market conditions.
Hausch said he plans to meet next Wednesday with the Broadlands Marketplace tenants to address their concerns and go over the shopping plaza's marketing plan.
So, are these business owners' concerns an indicator that more shops and services will close their doors for good in Loudoun County?
Several weeks ago, the upscale eatery Café Panache closed in Broadlands, and this week, it was announced that the whole beer-brewing operation at Old Dominion Brewing Company in Ashburn will be moving to Dover, Delaware, in 2009. (In August, the new owners of Old Dominion closed the popular eatery at that location.)
In a statement released Oct. 21, Coastal Brewing, said that it will continue to brew Dominion beers at a consolidated center in Delaware and that the company is offering positions there for the 15 or so employees who currently work in Ashburn.
This news came on the heels of a statement not so long ago by Coastal Brewing that it would not be moving the brewery to Delaware, according to this blogger at Musings Over a Pint.
Are you a business owner in Loudoun? If so, please let us know in the comments field below how the slowing economy has affected your livelihood.
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It's a common theme throughout Loudoun. Kirkpatrick's in Ashburn Village, a local legend and community hot-spot, just closed down last Saturday.
Time to buckle down and ride it through. Do what you can to stay afloat near term and hopefully things will turn around next year.
Posted by DaniloBogdanovic (anonymous) on October 24, 2008 at 3:12 p.m. (Suggest removal)
If someone is looking for some great beers that are truly locally brewed, check out Vintage 50 in Leesburg. Good food and speciality brewed beers including cask ale.
Posted by truthseekerva (anonymous) on October 24, 2008 at 3:34 p.m. (Suggest removal)
"increases promotion of the strip mall"...Van Metre - why don't you start some Loudoun Internet Marketing activities...
Posted by Elise (anonymous) on October 24, 2008 at 6:11 p.m. (Suggest removal)
I've wondered for years how some of these businesses were staying afloat. So many strip malls have been built in eastern Loudoun in recent years with essentially the same kinds of businesses in each (in some cases, the exact same businesses). Loudoun is the only place I've ever lived where the grocery stores (with the exception of Wegmans, of course) are never crowded. I rarely ever have to wait in line at a supermarket in Loudoun. Granted, this is nice for me from a convenience standpoint but maybe it's a sign that there's just too much retail for the population here. And there are more shopping centers in the works. A new town center at Potomac Station, where there is already a strip mall and a Wegmans shopping center under construction. And then One Loudoun ...
Posted by jt12 (anonymous) on October 25, 2008 at 9:01 a.m. (Suggest removal)
Once ObaMarx raises the minumum wage, a lot of people will lose their jobs, and the ones who got their forced raise will have to work 25% harder. (chuckle) ...
Posted by OhTheHumanity (anonymous) on October 26, 2008 at 9:29 a.m. (Suggest removal)
The family and I went to eat at the Oasis Gourmet Grill in Ashburn Village last night and were saddened to see that it, too, has closed. :(
Posted by EricaGarman (Erica Garman) on October 26, 2008 at 9:47 a.m. (Suggest removal)
Local HOA's need to understand that it is important to work with local businesses if they want local services. Allow for some cheater signs or other advertising as long as it is removed at the end of the weekend. Otherwise, if we (businesses, residents, and landlords) don't all work together, then it will be impossible to provide the services and convenience that today's consumer demands.
Posted by ajfowlkes (anonymous) on October 26, 2008 at 1:46 p.m. (Suggest removal)
local businesses also need to raise the bar of service and products- as fierce as competition is and as many duplicate businesses exist in Ashburn alone, customer service and product quality are major factors in who stays and who goes.
some fantastic businesses have closed b/c of horrible location and/or lack of effective marketing. others closed because of poor service or lousy products. i try hard to support and discuss those local businesses that do give 100% and then some and deliver above average---- whatever they deliver!
Posted by tttrenee (anonymous) on October 26, 2008 at 9:11 p.m. (Suggest removal)
'Cheater signs'? You mean those annoying plastic ones that become trash? No thanks. Spamvertising isn't the answer here. The key to staying afloat in this economy is figuring out where your role is in households that are feeling the crunch, and finding ways to differentiate without impacting the bottom line. Adding significant markup to cover the cost of (unwanted) advertising is a step in the wrong direction.
Posted by Hoqenishy (anonymous) on October 27, 2008 at 7:20 a.m. (Suggest removal)
How about just better food? We recently went to an restaurant in the Lansdowne Town Center that shall remain nameles. I ordered the Shrimp Scampi. It was five shrimp over buttered pasta.....it cost $20!!! Another restautant in the same location promises fresh seafood. On one particular outing my wife received a piece of fish that was still frozen in the middle and when I asked if I could get my crabcake broled, they stared at me like I had three eyes. Avoid the restaurants in this area at all costs!!
Posted by truthseekerva (anonymous) on October 27, 2008 at 10:06 a.m. (Suggest removal)
... and they're looking to implement a 4% food tax, of all things. THAT will certainly help Loudoun's economy, won't it?
A cadre of rabid poo-slinging monkeys could do a better job than our county government.
Posted by Hoqenishy (anonymous) on October 27, 2008 at 10:38 a.m. (Suggest removal)
Hell lets tax them all! Let give the BOS a Pay raise, Lets give the LCSB a pay raise. Lets raise water/Sewage, electric, trash pick up and property taxes. Lets spread the wealth and vote for AYERS!
Posted by Funnyguyva (anonymous) on October 27, 2008 at 10:59 a.m. (Suggest removal)
I swear that (eastern) Loudoun has more strip malls per capita than anywhere in the country. It's not surprising that some of them are going to fail.
Posted by whlinder1 (anonymous) on October 27, 2008 at 1:56 p.m. (Suggest removal)
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