The Restaurant Industry’s Resurgence in New York City
A New Era of Growth and Opportunity
Chef Franklin Becker and partner Stephen Loffredo’s $7 million investment in Point Seven, a two-story seafood eatery in the MetLife building adjacent to Grand Central Terminal, is a testament to the industry’s resurgence in New York City. The restaurant is one of the first to occupy a space that was previously shuttered during the pandemic.
A Bet on the Recovery
The $7 million investment is a bet not just on the recovery of Midtown, but on the reestablishment of the pre-pandemic work week, with the restaurant expecting to be filled continuously. "We believe in the resurgence in Midtown," said Becker. "As offices realize a four-day work week is not effective, we believe people will start to settle into a five-day workweek."
A Growing Trend
The restaurant industry has finally recovered from the travails of the pandemic, with employment at restaurants and bars almost back to the 2019 record level, averaging about 323,000 in recent months. The most notable activity is now in the city’s business districts, including Midtown East, the Plaza district, and business-centric locations that have come back a little bit with a return to office.
The Rise of New Restaurants
According to CBRE data from 2022 to 2024, food and beverage topped all other categories of retail leasing, with 460 deals for 1.75 million square feet making up 30% of all retail leasing in Manhattan. So far this year, those leases have accounted for one-third of all the space leased.
The Hotspots
The area around Grand Central has attracted big names, lured in part by the increased foot traffic resulting from tougher in-office work attendance requirements by the financial firms in the area and the addition of Long Island commuters now arriving at Grand Central. Capital Grille relocated from 42nd Street to the MetLife space that had been once home to the popular Italian-styled eatery Naples. A few blocks north on Park Avenue, the famed chef David Burke opened Park Avenue Kitchen.
The Challenges
While activity continues in the boroughs and in residential neighborhoods that were the first to rebound, the most notable activity now is in the city’s business districts. "We are seeing more growth in Midtown East, the Plaza district, and business-centric locations that have come back a little bit with a return to office," said Spencer Levy, a broker specializing in food and beverage with the real estate firm CBRE.
Conclusion
The restaurant industry’s resurgence in New York City is a testament to the city’s enduring spirit and adaptability. While challenges remain, the industry’s growth and optimism are a promising sign for the future.
FAQs
Q: What is the current state of the restaurant industry in New York City?
A: The restaurant industry has finally recovered from the travails of the pandemic, with employment at restaurants and bars almost back to the 2019 record level, averaging about 323,000 in recent months.
Q: What are the hotspots for new restaurants in New York City?
A: The area around Grand Central, Midtown East, the Plaza district, and business-centric locations are the most notable areas for new restaurants.
Q: What are the challenges facing restaurants in New York City?
A: While activity continues in the boroughs and in residential neighborhoods, the most notable activity now is in the city’s business districts, with restaurants facing challenges such as softer weekends and the need to attract customers for breakfast.
Q: What is the outlook for the restaurant industry in New York City?
A: The industry’s growth and optimism are a promising sign for the future, with many restaurants confident about the remaining months of the year.
