Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 30, 1993 TAG: 9312300230
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: MICHAEL STOWE Staff writer
DATELINE: CHRISTIANSBURG LENGTH: Medium
Three local eateries have shut down in recent months, a handful are on the selling block and a long-time pizza parlor, though it is still open, has filed for bankruptcy reorganization.
Some restaurateurs say increased competition from national chains and the area's unwillingness to support fine dining have contributed to the changes. Others say they just want to pursue other business ventures and spend more time with their families.
Eat at Joe's Cafe International shut its doors earlier this month, joining Ponderosa and Our House (formerly Big Boy), on the inactive list. Nickleby's in Radford, along with Pedro's and Bogen's in Blacksburg, are for sale, and Backstreets Inc. has filed for reorganization.
Joe Steffen, owner of Eat at Joe's, said his restaurant - which opened in August - is officially closed for the holidays; but the Blacksburg lawyer-music promoter-hockey team owner admits the cafe at 130 Jackson St. is for sale. His restaurant employees have returned their keys and filed for unemployment benefits.
Steffen blamed the restaurant's short run on a variety of factors, including his involvement with the Roanoke Express hockey team and Blacksburg's citizens not supporting eateries with a diverse cuisine.
"One of my major disappointments has the been the fact that I may have overestimated Blacksburg's cultural appetite," the owner said. "People are so busy that they don't want to think when they go out to eat. . . . People may have been intimidated a little by the menu."
Eat at Joe's menu entrees included Ethiopian chicken and other items from African, Asian, Middle Eastern and European cultures.
Steffen said he also wants to devote more time to the Express, Roanoke's pro hockey team that he partially owns.
"You simply can't run a restaurant by phone," he said. "Obviously if business was booming I would have left it open."
Our House, which used to be part of the Big Boy restaurant franchise, has been closed for several months. Owner Herb Alcorn said only that he's "looking for a buyer."
Nick Solomon, owner of Nickleby's restaurant in Radford, echoed some of Steffen's disgruntlement over the lack of support for nice restaurants in the area.
"I'm sick and tired of this bloody town," said the transplant from Toronto. "If I had opened this restaurant in Roanoke, it would have been an entirely different situation."
Nickleby's, which features a menu of steaks, seafood and poultry, has been on the market for several months. The owner said he's lost $170,000 since opening in a huge restored Victorian home at 1123.
Solomon said he's disappointed that the New River Valley "thrives on fast food restaurants."
Charlie Whitescarver, general manager of the Norwood Center, said it's no surprise to him that an area plagued with a high unemployment rate has a tough time supporting high-price restaurants.
"People are out of work, they are looking to get the most for their money," he said.
Joining Nickleby's for sale are Bogen's and Pedro's, both in downtown Blacksburg.
Owners of both say they are looking for a career change and aren't selling because of sluggish sales.
"The restaurant business is tougher than when I started, but this is not because of any change in the market," said Bogen's owner, Bill Ellenbogen. "We're still very profitable."
Ellenbogen said he simply wants to spend more time with his wife and two small children.
"I'm 43 and if I want to change careers, this is the time to do it," he said.
Rick Walters, co-owner of Pedro's said he and partner Brian Littrell are "just looking for something new to do."
Ellenbogen said his 12-year-old business has been hurt by the wealth of restaurants that have sprung up around the Market Place shopping center in Christiansburg.
Pargo's delivered the hardest blow when it opened three years ago, he said. It's been followed by Texas Steakhouse and Applebee's Neighborhood Grill and Bar.
"There are just too many restaurants for the size of the area," he said. "There's a saturation of the market." Ellenbogen said a typical evening out often includes dinner and a movie, and Blacksburg restaurants may have been hurt by the loss of its first-run theatres. Studio Twin theatres and the Lyric theatre have shut down, and the Capri Twin shows only second-run movies.
Backstreets filed for reorganization and protection from creditors in U.S. Bankruptcy Court in November. The restaurant estimated both assets and liabilities at less than $50,000. Stephen C. Andrews Jr. of Blacksburg, president of Backstreets Inc., filed for liquidation, reporting assets of $637,225 and liabilities of $1,013,277. He couldn't be reached for comment.
by CNB