Jul 1, 2009 11:17 pm US/Eastern
Some Baltimore Restaurants Struggling In Recession
BALTIMORE (WJZ) ―
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Just days after two popular restaurants shut their doors, a third sits on the chopping block--all victims of the recession.
CBS
Just days after two popular restaurants shut their doors, a third sits on the chopping block--all victims of the recession.
Weijia Jiang explains how some local restaurants are struggling to stay in business.
Certainly ornate and almost decadent, the Brass Elephant Restaurant and the pre-Civil War rowhome that houses it is a staple to foodies like the Zahners, who have been eating here for 15 years.
"To us, it's a part of Baltimore, a part we knew and grew up with," said Rick Zahner.
"It's been maintained, very little has been changed. It's elegant. It's beautiful," said Joyce Zahner.
And now it's for sale. The owners have not been able to get a loan to keep up with payments which are necessary to make up for lackluster business.
"If you get laid off from your job, the last place you're going to go out to eat is a fine dining restaurant," said Brass Elephant Executive Chef Marcus Olson.
In the past two weeks, Mount Vernon's Ixia and Lucy's Irish Pub announced shutdowns. Nationwide in May, 60% of eateries reported fewer sales compared to last year. It was the 12th consecutive month of declining business. Only 26% of shops reported a rise in sales.
"The loose cash we did have, some of that is just not there," said Eric Paige.
Olson says intense competition is another reason why it's so hard to get by. In up and coming neighborhoods like Harbor East, new restaurants are opening and existing restaurants are thriving.
"We've seen this neighborhood go from dirt parking lots to high-rise luxury condos," said Bryson Keens, Roy's Hawaiian Fusion. "Great restaurant scene."
"We actually use the restaurants and Baltimore's culinary experience to promote Baltimore to meeting planners, to the travel media, to leisure travelers," said Nancy Hines, BACVA.
For now, it's unclear if the Brass Elephant will remain part of that scene. It could close if the building is sold.
"I hope it doesn't go away," said Rick Zahner.
The price tag for the building and the business is $1.8 million. Olson says about a dozen people have expressed interest but no formal offers have been made.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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