'Oversaturation' of market hurts business, Elgin Street restaurateurs say

Several restaurant owners on Elgin Street say they believe a wake-up call is needed about the future of the areaand the cost of doing business there.

The owners were reacting to news that FrescoBistro Italiano is set to close its doors on Thursday night.

The co-ownerof the popular Elgin eatery, Jim Bickford, said the decision to close is mostly because hewanted a change after more than 10 years of business.But he also said it's no secret that the cost of operating a business on Elginis expensive.

• Fresco restaurant will close its Elgin Street doors Thursday

• Maxwell's closing after 30 years in business

Rent up, hydro 'through the roof'

"For us, [closing] was just about a stimulus for some change, and maybe get ourselves into a more profitable situation, in a different location, and under different circumstances," said Bickford.

"Rent's gone up considerably, utilities are through the roof.I mean Hydro Ottawa is obscene at this time, I think, personally. But ... those aren't necessarily the determining factors in our decision, they're just part of the decision."

Fresco isn't the first Elginrestaurant to close in recent months.

Maxwell's shut its doors early last year.

'Oversaturation' of the market

The owner of Woody's Pub, which sitsjust down the street from Fresco, said he fears more business owners on Elgincould make similar decisionsas independent restaurants in the areafaceincreasing operating costsand newcompetition from larger chains in otherentertainment districts, such as Lansdowne Park.

Ottawa is currently experiencing an "oversaturation of the districts," and the days where Elginwas seen as an entertainment destinationmay be over, Keith Loiselle said.

"It's painful on the independents."

Loisellealso said some people wrongly assumebusinesses on busy Elginall turn a huge profit.

"I think there needs to be a bit of a shift, you know, where the landlords realize, 'Yes these are great neighbourhoods, but there's a lot of great neighbourhoods now,'" he said.

Renewed calls for Elgin BIA

Several years ago Loiselle tried to start a business improvement area for Elginbut it never got off the ground.

There are now renewed calls to try and get a BIA up and running, including from Warren Frederick, the co-owner of Common Eatery on Elgin, which opened in July.

"I definitely think it would help out, give us a little voice to the city and stuff like that. I think it would make us stronger as independent business owners on Elgin for sure," said Frederick.

News of Fresco's closure is "a bit scary," he said, and added that the cost of rent on Elgin is a constant concern each month.