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When two restaurants with similar offerings are located close to one another, does it help or hinder their business? —Samantha S., St. Louis
Ask George answered a similar question last year, when POP, a bubbles-based bar and restaurant, opened next door to 33 Wine Shop & Bar. We argued that POP was a different concept—with a substantial food menu, lots of sparkling wine, and only three still wines—and therefore would attract a different customer. A year and a half later, 33's owner James Smallwood says business remained strong even after POP's arrival. "When more wine fans end up coming to our neighborhood, we both benefit," he says. "Right now, each of us are giving customers what they want, and when you do that, usually you'll be ok."
The original question comes on the heels of Mission Taco Joint’s announcement that it would be opening its seventh location in Kirkwood (in the former Kirkwood Station Brewing Co. space at 105 E. Jefferson) directly next door to Club Taco, which opened in May 2016 (and half a block from Amigos Cantina, open since April 2008).
The situation in Kirkwood involves more direct competition—taco joints—but it’s not all doom, gloom, and bad vibes, say both owners.
Club Taco owner Gerard LaRuffa admitted that when he heard the news, he felt that he had been “punched in the gut” by several entities (he had heard the 12,000-square-foot building space might be subdivided). But as the reality of a single restaurant set in, he took the high road. ‘Competition brings synergy and increased traffic,” he told SLM, referencing the ‘rising tide raises all boats’ mantra. “I’m always looking for ways to increase our food quality, service, and appearance…Having a formidable new neighbor is one way to make that happen.”
We contend that the first restaurant of its type in a neighborhood tends to make the biggest splash and have the most impact, and Club Taco has had over three years to endear itself and generate repeat business. It's done both.
LaRuffa paints a broader and even more optimistic picture: “Hopefully now our corner becomes known as ‘taco corner,’” and people come from all over to check it out.”
There will be plenty to check out: Over the years, along with its happy hour, breakfast hours, and huge selection of cleverly named tacos (Eye of the Thai-ger, The “Fun Guy”), Club Taco’s corner patio has become a high-energy hot spot. Mission Taco plans to split the 12,000-square-foot space in half, with one side including a classic arcade video game area and a tortilla-making operation where guests can watch staffers convert corn into masa, then press the masa into tortillas.
Adam Tilford, who owns Mission Taco Joint with his brother, chef Jason Tilford, has already reached out to LaRuffa about menu collaborations and events. “People think we jumped on this location with no regard for our neighbor, and that’s just not true,” he says. “We have three stores in the city, one in St. Charles, and two in Kansas City. We’ve been looking for a place in the county for a long time [recalling 10 possible sites] and had come up with nothing. In addition, we were looking for a space to expand our tortilla-making operation, and the Kirkwood Brewing location completely fit our needs. Unfortunately, it was located next to a beloved taco restaurant.”
Tilford recalls that he objected “loud and long” when Amigo’s opened a sister restaurant, La Cantina, within a hundred yards of Milagro Modern Mexican, which he and his brother owned in Webster. To his surprise, the business at Milagro increased. It should also be mentioned that Kirkwood has more than a handful of pizza restaurants (and over a dozen that serve pizza), and all have carved out their share of the pie. Granted, none are adjacent to each other, but several are located within a block of one another, which in shared-parking Kirkwood becomes a moot point.
And how can one not mention Cherokee Street, where several blocks of Mexican restaurants peacefully coexist?
Remember, when a new restaurant opens up on the same block as an existing one, customers will gravitate to the newbie, and business at the existing restaurant can plummet, usually temporarily. Eventually, a new equilibrium is reached as each finds its new normal. In discussing the matter, several Club Taco devotees mentioned regular cravings for specific signature menu items, which are likely to continue. So it’s not always a dire situation. It's often a win-win.
Two months ago, La Catrina Mexican Restaurant opened robustly on Hampton Ave. just 300 feet from longtime Southside staple Pueblo Solis. Despite the proximity, owner Al Solis reports that "business just didn't increase, it went up exponentially," and has yet to let up. "To be honest, we welcome all the neighborly attention that's being given to the Mexican food genre. We benefit from their overflows and they benefit from ours. It's a total win-win. I see no reason the same thing can't happen in Kirkwood."
Responding to the perceived taco-gate dilemma, one devotee commented on Facebook that she "can eat enough tacos to support Amigo's, Club Taco, and Mission. You guys need to look deep within if you think more tacos is bad," and Tilford responded.
"She's right. Both parties are motivated and excited about this," he told SLM. “Doesn’t a taco crawl sound good? Or a margarita crawl, perhaps?”
If you have a question for George, email him at gmahe@stlmag.com. You can also follow him on Twitter @stlmag_dining. For more from SLM, subscribe or follow us on Facebook, Twitter, and Instagram.
