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Downtown Denver Restaurants Rely on the Kindness of Strangers

Visitors, not locals, support the dozens of restaurants packed into Denver's tiny Lower Downtown district.

By Lisa Bertagnoli, Contributing Editor -- Chain Leader, 12/1/2008

Here's a puzzler: How do 100 restaurants survive in a 25-square-block area that has fewer than 1,500 residents?

Map of Lower Downtown Denver
Coors Field, home of the Colorado Rockies baseball team, is located on the northwest edge of LoDo and draws about 2.45 million baseball fans a year.
Coors Field
For Denver's Lower Downtown, or LoDo, there are four answers: Coors Field, Elitch Gardens, The Denver Center for the Performing Arts and Pepsi Center. The four tourist attractions draw more than 7 million visitors a year. And that may or may not count the millions of travelers who use Denver as a staging area for Rocky Mountain ski vacations.

“Depending on where you are in LoDo, you're either close to Coors Field or The Denver Center for the Performing Arts,” says John Imbergamo, a Denver restaurant consultant and board member of The LoDo District Inc., a nonprofit group that supports businesses in the area.

The restaurants in LoDo are “a combo of independents and chains unmatched in the city,” Imbergamo says. Chains in the area include Morton's The Steakhouse and P.F. Chang's.

LoDo is a historic collection of 19th-century warehouses that have, in the last two decades or so, been refurbished and converted into lofts and retail space. Development continues with 21st-century structures, among them 1401 Wynkoop and the SugarCube Building, which are both mixed-used developments comprising retail, restaurants and office space.

Tricks of the Trade

Restaurants opening in the new developments must follow the standard city building codes—no surprise there. But restaurants located in the historic buildings must adhere to strict design codes.

“It's not a simple thing to come in and install your trade dress down here, like you would in a suburban location,” Imbergamo says. New businesses must submit to the rigorous LoDo Design Review, established in 1988 during the area's revitalization. “Locals know that the review is important, and chains learn that relatively quickly,” he says.

“They're really strict, for all the right reasons,” agrees Steve Halliday, president of Denver-based Pacific Rim Hospitality, a multiconcept operator. This winter, Halliday is opening his third pan-Asian Ling & Louie's restaurant on LoDo's 16th Street pedestrian mall. He says his architect had to work with seven offices to clear the required design hurdles.

Restaurants in historic 19th-century LoDo buildings must undergo a strict review during the design process.
But he gladly endured the review. Halliday expects the 5,800-square-foot, 225-seat restaurant to gross $5 million, twice the volume of the other two Ling & Louie's restaurants. He expects fully half of business to come from tourists.

Not for Everyone

His great expectations aside, Halliday thinks that a LoDo location won't work for all concepts. To do big volume, dinner service and a liquor license are a must. Plus, the location lacks the amenities of suburban locations, for instance, street parking. But the area has plenty of garage parking. Tourists quickly learn to park and walk the strip of restaurants and shops.

Imbergamo adds that another hurdle to thriving is competition, simply because LoDo is packed with many restaurants and bars. “If you don't stand out and do well, you're not a pioneer—you're one of many,” he says.

MORE: Historic districts are beautiful and popular, but for chain operators, are they worth the hassle?

 

From the Street

Area LoDo (Lower Downtown), Denver, ZIP code 80202

Population 1,493

Median Age 45.1 years

Median Home Value $396,000

Commercial Rents $25 to $34 per square foot annually

Notable Developments Sixteenth Street pedestrian mall, whose northwest end juts into LoDo; Union Station, currently under redevelopment as a transportation hub for the city; 1401 Wynkoop, with 22 condos and 100,000 square feet of office space; SugarCube Building, with 37 condos, 50,000 square feet of office space and retail.

Operator Perspective Chipotle has had a restaurant in LoDo since 2003. “It's a really bustling part of the city,” says Chris Arnold, spokesman for the 800-unit chain. The 2,200-square-foot, 75-seat restaurant “definitely skews to lunch,” due to the business traffic in the area, Arnold says. Indeed, the restaurant closes at 9 p.m., rather than at 10 p.m. as do most Chipotle locations, and is not open on Sunday. Arnold says the store does well, though he won't discuss exact figures. He also jokes that the location “might be the hardest store in the country to run,” due to its proximity to the company's headquarters in LoDo.

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© 2009, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.


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