NASHVILLE, Tenn. (WTVF) — Over the past few months, several beloved Nashville restaurants have announced closures, and industry leaders say rising commercial rents are making it increasingly difficult for establishments to survive.
Barbara's Home Cooking in Williamson County, Dalt's in West Nashville, the Melting Pot downtown and SupperClub on Belcourt have all recently closed their doors. Each cited lease issues, decisions not to renew or leases ending as factors in their closures.
The Greater Nashville Hospitality Association acknowledges the trend affecting local businesses.
"I've seen some of that as well," Leesa LeClaire with the Greater Nashville Hospitality Association said. "Just as our real estate has exploded in terms of value, that's affecting leases too, and that's about to affect any business that operates under a lease agreement."
SupperClub partners and co-owners say the restaurant industry operates on small margins, making rising Nashville rents particularly challenging.
"When you don't own the building, you don't have the ability to be the master of your own fate," AG Granderson, partner and co-owner said. "Nashville prices are going up. It's harder to justify in some regard some business models because of the price of the rent."
The group, which has opened and closed ventures across Nashville for more than 10 years, says one constant remains: operating costs continue to increase.
"You're probably at $21,000 a month before you buy a chicken wing," Joe Johnson said. "Oh it's insane. It's insane. Nashville is LA numbers, New York numbers, Miami numbers."
The hospitality association notes that while Nashville's growth as a food destination brings opportunities, it can also push out existing businesses, especially in an industry with traditionally thin profit margins.
"I think overall the industry is healthy," LeClaire said.
However, closures don't always mean permanent endings. SupperClub decided to renew their lease and will reopen with a different concept at the same location.
"Having people so happy to come down and sit down and have a food or drink item you created and then to see it stripped away, people have a really emotional reaction to it," Granderson said.
The new concept will be a bar-lounge, though owners haven't announced a firm opening date yet.
"They find their place, their stool, their booth, their item on the menu, so it's really cool to have people so excited about that," Granderson said.
Are you a Nashville restaurant owner dealing with rising lease costs? I want to hear your story. Email me at Amanda.Roberts@NewsChannel5.com to share your experience.
This story was reported on-air by Amanda Roberts and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
