Are there too many restaurants in Whatcom? Not enough? Here’s what experts say
In the 14 years I’ve written about retail here, by far the most feedback I get from readers is questions about restaurants.
Here are some of the answers. (And please keep sending inquiries.)
National chain restaurants
One of the more common questions I get is why a specific chain restaurant isn’t in this area. This is something I’ve asked commercial real estate agents, small business advisers and those in the restaurant industry over the years, and here are the most common explanations:
▪ Many times it’s about the numbers. I’ve been told many national companies have a very specific criteria in place, with population numbers and demographics being big factors. How many people are in a 5- or 10-mile radius of a potential location? What’s the household income of that area?
Exceptions can be made, particularly given Whatcom County’s place in the U.S. The Canadian cross-border traffic can tip the decision in favor of opening something here.
▪ If a restaurant is already in Washington, it may get here eventually. One thing I’ve noticed is that after a company announces it is entering the Washington market, many times the first restaurant opens in the Seattle area. The company then starts adding new locations up the Interstate 5 corridor, maybe opening in Marysville, then Smokey Point or Skagit County. Whatcom is then the final stop in the march north.
▪ Sometimes, the local market is stronger. This area was once known for its strong local grocery scene, with Haggen, Ennens, Brown & Cole dominating the market. I think that can happen with types of restaurants/eateries as well: There are several local ice cream places, but not many national chains in this region, for example.
▪ So what are the most common restaurant requests? Panera Bread, Cheesecake Factory, PF Chang’s, Red Lobster and McMenamins.
Passion for food
A few readers have commented that maybe we have too many restaurants in this area, particularly when it comes to the churn (openings and closings) that takes place.
It might be hard to determine what’s “too many,” but the data seems to indicate Whatcom County is in line with other Washington communities. In 2018, Whatcom had 584 eating and drinking places, according to the Washington State Department of Revenue. That’s a per capita total of one restaurant for every 386 people.
Skagit’s per capita is one restaurant for every 305 people.
King County has more than 10 times Whatcom’s total, but King’s per capita is one restaurant for every 367 people.
As for why people get into the non-chain restaurant business, passion for food and delivering a great experience are the most common responses I get when interviewing new owners. That’s also the kind of comments CJ Seitz hears. She’s the director at Western Washington University’s Small Business Development Center, which gets plenty of clients in that sector.
In her years of advising people about opening a restaurant, she can’t recall one listing “making money” as the top reason they want to do it. The development center helps new owners understand the financial realities, particularly keeping expenses in check.
With all of these establishments, competition is tough. Dividing the number of establishments into Whatcom’s 2018 restaurant sales, the average gross income is $656,000. With industry net profits in the 5% range, that’s around $33,000 a year.
That’s some food for thought when you see restaurants opening and closing in Whatcom County.
