RED LOBSTER LEAVES A BIG VOID CONTINUED...
FINANCE
ea’s main economic engine since the 1940s. The loss accelerated Danville’s population decline and created a ripple effect for other busi- nesses that depended on factory workers. Subsequent closures have further dampened local morale. “People have been down and kind of saddened lately with any closures, especially with a big busi- ness like [Red Lobster],” said Jenni- fer Bailey, a reporter for the Vermil- ion County News-Gazette who has lived in Danville for 25 years. When Red Lobster closed, Dan- ville was already reeling from news that PepsiCo planned to shut down its Quaker Oats granola bar plant in the city, erasing more than 500 high-paying union jobs in an un- comfortable echo of GM’s depar- ture. Losing Red Lobster felt like adding insult to injury, said Mike Marron, CEO of Vermilion Advan- tage, which acts as the economic development agency and chamber of commerce for Danville and the surrounding area. “It was like, ‘Re- ally? We gotta deal with this too?’” he said. But the closure has just as much to do with the state of the restau- rant industry than with anything inherent to Danville’s past or pres- ent. Older full-service brands like Red Lobster have struggled in re- cent years as consumers increas- ingly look for either convenience or an experience when dining out. Three years of historic inflation have been particularly hard on sit- down restaurants, which tend to have lower margins to begin with. Chains that haven’t responded well to those changes have seen custom- ers migrate elsewhere. Danville is in many ways a mi- crocosm of that shift. The city has enjoyed a mini boom of modern quick-service concepts and is now home to a Jersey Mike’s sandwich shop and a pair of fast-growing drive-thru coffee chains, Scooter’s
PHOTO: ROLAND LIM
and 7 Brew. A Sonic Drive-In is also reportedly on the way. “It’s a changing taste,” said long- time Danville resident Mark Fred- erickson, himself a former Red Lobster bartender in Chicago. And it is part of an ongoing ef- fort by city leaders to re-energize Danville. In February, the city un- veiled a new logo with the tagline “You decide what’s possible.” Amid the recent closures, there has been growth as well. “I can take some sense of solace in knowing that right next door to the Red Lobster restaurant that closed, we have a brand-spanking- new car wash,” Frederickson said. “But a lot of people were very woe- fully disappointed by the closing of Red Lobster.” As for the now-vacant restau- rant, Vermilion Advantage is work- ing to secure a new tenant but has not made much progress, Marron said. Large, full-service locations like that tend to be harder to fill, especially given the tough environ- ment for those concepts. “It’s just the reality of the situation we face,” he said. Residents have long hoped for an Olive Garden or a Cracker Bar- rel in town, said Bailey, who noted that whatever replaces Red Lobster
should receive a warm welcome. “You just see packed parking lots [at restaurants],” she said. “People definitely like going out to eat.” Indeed, after Danville’s food and beverage sales plummeted in 2020, they bounced back 15% the follow- ing year, outdoing 2019 spending, according to data from Vermilion Advantage. Sales increased 2% in 2022, the last year for which data was available. In Red Lobster’s absence, Wil- liams said business has picked up at other establishments, including an Applebee’s up the road. There are new, locally owned Italian and Vietnamese restaurants, and a Salt- grass Steakhouse inside the recent- ly opened Golden Nugget casino could serve as a special occasion destination. Residents also have high hopes for development at the Village Mall, where a new owner plans to add a dine-in movie theater and a sit-down restaurant. Still, those looking for their Red Lobster fix will have to travel to get it. The nearest location is in Cham- paign, a 35-minute drive west on In- terstate 74. “I think people don’t like having to go out of town for all that stuff,” Bailey said. “We want it in Dan- ville.”
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RESTAURANT BUSINESS OCTOBER 2024
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