Cities that Sizzle

Nation's Restaurant News,  Jan, 2001  

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P.F. Chang's Halpern says the company initially faced staffing problems. "We find it challenging to attract the people to a new concept," he says. However, the new concept soon caught on with workers, he says. Servers at P.F. Chang's can earn from $15 to $30 per hour. "We employ more people in the restaurant to give our servers more time to spend with the guest to give them the optimal dining experience," he says.

Another problem facing restaurant operators as development in the downtown area continues is restaurant lease costs.

Although Indianapolis has well-known independent restaurants, such as St. Elmo's, the major trend in the city is toward chain restaurants, Sweeney says. Some credit high lease costs with the lack of independent restaurateurs downtown. "We're just running out of good spaces," Sweeney says. "We're site-challenged. The leasing prices have gone up to $18 to $30 per foot." Landlords tend to lease to chain restaurants with national reputations rather than take a chance with more untested independents, Sweeney says.

But independent restaurateur Chris Clifford of St. Elmo's says he is confident that independents will enter the downtown economy. "When they first started redeveloping downtown, the city planners really went after the corporate restaurants because they felt it gave us [Indianapolis] an identity," he says. Clifford notes the increase in residential development will boost the number of independent restaurants downtown.

But while restaurant competition is continuing to increase, restaurateurs say they are not feeling the pinch. All conclude that as more restaurants come into the area, business only seems to get better.

Bill Crawford, senior vice president of peripheral development for the Simon Group, which owns Circle Centre Mall and the Fashion Mall at Keystone Crossing, credits Indianapolis' strong and diversified economy for the success and growth of restaurants in the city.

"Success breeds success," Crawford says. "So many of the national restaurant chains have seen how well those that have opened here have done, and that's brought more chains into the area."

The popularity of downtown Indianapolis is due to careful planning, a good economy and commitment. "We've laid a great foundation for growth," Sweeney says.

And it doesn't look like there's any end in site for Indianapolis' booming economy. Despite stiff competition from some of the largest and most successful chains in the nation, Clifford says St. Elmo's Steakhouse is still the No. 1 producing restaurant downtown. Clifford adds that in 1999 its sales increased by 18 percent, and the restaurant expects an increase of nearly 24 percent for 2000. "We've been here 100 years, and we haven't changed anything," Clifford says.

INDIANAPOLIS

(2001 estimates, except as noted; growth lutes are est. 2001 vs. est. 1999, except as noted)

Population: 1.60 million, 1.91%

Population growth, est. 1999 vs. 1990: +13.77%