Considered the heart of midtown, the intersection of Yonge & Eglinton has experienced a boom in development owing to its central location. And as the midtown centre continues to grow, so too does the size of the restaurants taking up space—especially when it comes to eating Italian. It seems Yonge and Eglinton’s many new residents find it more convenient to dine at a large restaurants in contrast to the small, independent storefronts that once lined the streets.
In the last decade, Yonge & Eglinton has welcomed the third location of Cibo Wine Bar, Stock Bar’s 20,000-square foot, three-level restaurant; and, most recently, the opening of the 260-seat Oretta.
While these names are familiar across the GTA, other Yonge and Eglinton Italian restaurants haven’t stuck around long enough to gain such popularity. Amore Trattoria, Bar Buca, Balsamico, and most recently, Five Doors North, are all smaller Italian restaurants that have closed within the past few years.
Does sharing the corner with big-name restaurants push out the independent ones, or is there another force at play?
When asked about the effect of the arrival of the bigger stores on their business, a spokesperson at Sip Wine Bar admitted “things aren’t as they used to be.” An Italian family restaurant, Sip Wine Bar moved into the neighbourhood ten years ago, just as Yonge & Eglinton was beginning its redevelopment. But, though the spokesperson says the arrival of big restaurants do temporarily steal customers, they don’t feel it puts their family-run restaurant at long-term risk.
“A brand-new place is going to entice customers, certainly,” they said. “But, seeing all of that, looking down the road, maybe a year or two when all development in the area is completed, I think there’s an opportunity for all businesses to do much better and grow.”
The new businesses certainly aren’t the only new development coming to the corner. Between increased condo development, the proposed 9.2-acre Canada Square redevelopment plan which would include 2701 units across five towers, and the upcoming Eglinton Crosstown West Extension inviting residents from Mississauga, Yonge & Eglinton will hardly be recognizable in a few years. The population of the midtown centre is expected to double by 2031.
Angelo Moretti, the owner of Grazie Ristorante, a 30-year-old small Italian spot that’s just across the street from Stock Bar, doesn’t mind sharing the block. “I’m a firm believer that competition is healthy,” he said, explaining he also feels his restaurant offers something different than the new competitor. “It levels up the quality and the neighbourhood. I think competition makes everyone better and makes everyone strive to have a better product.”
However, Moretti characterizes the neighborhood’s growth as a “Catch 22 situation,” recognizing the closure of smaller restaurants. Nevertheless, he does not perceive it as directly tied to losing customers to these larger eateries.
“Small businesses can’t survive because when you get development with condos and a lot more people, the land value goes up and the rents go up and it gets very difficult,” he explained. “You want redevelopment, you want new people in the area, but unfortunately it squeezes the small operator and that’s something I feel for, because the small operator is the heart of the neighbourhood.”
Frank Gargiulo, chef and owner of Roberto’s Restorante Italiano, explained that many of the restaurants in the neighbourhood that he’s seen “come and go” were paying over $10,000 per month on rent alone for spaces barely 1,500 square feet. “Unless you’re working and making some money to carry those expenses, there’s no way.”
Larger restaurants have an easier time fronting these bills, while still dealing with COVID-19 setbacks, the new demand for delivery, and continued labour shortage.
Older restaurants like Roberto’s, are able to rely on a loyal stream of customers, some of which, Gargiulo explains, have been dining at the restaurant for 55 years since his parents first opened the business.
“We have so many regulars that have been literally coming for the last thirty or forty years. They just feel comfortable,” he explains. “Their parents have come for forty years, and now their kids come, and their kids, too.”
With thirty years on Yonge Street, Grazie, too, has built a clientele and continues to cater to “second-generation customers.”
However, building such a reputation takes time and cannot be achieved overnight. Moretti clarified that both big and small restaurants require the opportunity to establish themselves, which is often hindered by obstacles such as rent payments.
“These restaurants don’t have a longstanding legacy or an established connection with the neighbourhood,” said Moretti. “So, they’re in the process of building a fresh relationship, establishing a new identity and ultimately cultivation a loyal clientele.
If they can pay rent long enough to build that identity, that is.