Wave of new restaurants opening near Ann Arbor despite economy

Restaurateurs who think they've found unfilled niches in the Ann Arbor cuisine scene are providing a flurry of activity in what remains one of the more vibrant sectors of the local economy.

Jumping on the locavore movement, Great Plains Burgers on Plymouth and the Grange Kitchen & Bar on Liberty are providing locally sourced eating options at opposite ends of the expense scale.

The Temptations Indian restaurant in Ypsilanti recently reopened as the only such eatery in town.

Also, a longtime restaurant family is planning a redevelopment of the Cherry Blossom Japanese restaurant on South State Street in Pittsfield Township, having recently transferred a liquor license to a new LLC; and a new sports bar, the Milan Grill, has opened in downtown Milan.

And there may be more coming -- real estate broker Jim Chaconas of Colliers International said restaurants are providing most of the interest in the vacant first-floor space at the Handicraft Building at Liberty and Division in downtown Ann Arbor.

He said he's in ongoing talks with a restaurateur for the space, and that other operators from the Detroit area often look to Ann Arbor as a place to do business.

"They're looking at where is the most stable market in Michigan, and that's in Ann Arbor," he said. "Most people are looking to be at downtown or the campus area."

He also said restaurant operators with new things to try out are attracted to the city.

"People with new concepts want to launch in Ann Arbor," he said.

While the University of Michigan may provide a constant set of customers, Mike Gibbons of Mainstreet Ventures, which owns, among others, Palio, Gratzi, Real Seafood Co. and Carson's American Bistro, said that doesn't guarantee success.

"If you have a good concept and good service, you can do well," said Gibbons, who was recently named chairman of the board of the National Restaurant Association.

More recent downtown changes include a new partnership that will take over Rush Street, and the September opening of Jolly Pumpkin Cafe & Brewery.

In Pittsfield Township, the Youssef family, which has operated Big Boys across Michigan for decades, is working on converting the closed Cherry Blossom Japanese restaurant into an upscale eatery that would have room for 270 customers and employ between 20 and 30 people.

Zakhour Youssef declined to discuss the details because he hasn't settled on a specific plan, but in a filing with the Pittsfield Township Board of Trustees, he said the 10,300-square-foot space would become an "upscale" and "elegant" restaurant.

Youssef was seeking a transfer of the restaurant's liquor license to a different LLC, a move that was approved by the township board in September.

In Milan, Greg and Bobby Stamatopoulos, who run restaurants in Jackson, Dexter, Pinckney, Tecumseh and Saline, opened the Milan Grill on Oct. 1.

Still, even while new market entries seek viable positions, existing restaurants have been feeling the pinch of the current economic recession, Gibbons said.

"We're flat, and I don't remember saying that before," he said. "There are fewer people dining ... and there are more restaurants, so more places to choose from."

Main Street Ventures, has been opening new restaurants Dayton, Ohio, and Annapolis, Md., but Gibbons said there are no plans to expand in Ann Arbor.

He said the continuing proliferation of restaurants downtown can be a double-edged sword -- on one hand, it provides a place for people to come and browse for a place to eat, potentially attracting more diners. On the other hand, it may come to a point that there are more restaurants than demand dictates.

"Eventually, there may be more restaurants than there's a need for. I don't know if that will happen," he said.

Freelance reporter Dan Meisler can be reached at danmeisler@gmail.com.

Tags: restaurants,