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Rough economy spares local niche restaurants
MCALLEN — Romeo Rendon decided to open a restaurant during one of the worst economic times America has seen.
Rendon, 47, opened Woodlands Comfort Food and Grill, 6800 N. 10th St., McAllen, in April 2008 — six months later the stock market crashed. He said there were many days where he wondered how he was going to stay afloat in the poor economy.
“I poured my heart and soul into that restaurant,” he said.
He has now closed it and sold the space to another local restaurant looking to expand.
Although closing his own restaurant was sad, Rendon said the expansion of another local business is a sign of hope that things are getting better for the industry.
The Valley saw the worst of the recession around October 2009, Eduardo Millet of the McAllen Chamber of Commerce said. Many local restaurants felt the sting of penny pinching and were forced to close their doors.
However, some eateries were able to weather the storm and after sales hit a low, things began to stabilize, Millet said. Recently, businesses have begun to see a very small upswing, Millet said.
“Yes, things are getting better,” he said. “But we should think twice about making decisions, purchases and investments. We are seeing a recovery, but we should still be conscious.”
But the rift in the economy wasn’t the deciding factor if a business was going to make it through the hard times or not, Millet said.
“There’s a (natural) cycle in the restaurant business,” he said. “It’s a very competitive market. If you don’t have a concept, if you’re not taking care of little details, then you’re not going to make it. I think it’s normal that some restaurants just close. I’m not concerned about it. I think it’s normal — sad but it’s part of the economy.”
Roosevelt’s at 7 on Main Street in McAllen is one local business that has a clear concept. The local eatery and ale house features 50 different beers on tap and a variety of upscale dishes.
The business didn’t get hit by the recession, general manager Ricardo Macias said.
“We’ve been steady throughout,” he said. “We’ve actually seen more of an increase (in business and customers). More people come into town or from somewhere else they recognize the beers and want to drink here because we have it.”
The restaurant and bar has been open for more than two years and according to Macias, having a niche business is what has kept them afloat through the country’s economic downturn.
And now, with the faithful customers they have gained in the hard times, they are reaping the benefits of things getting better, he said.
“Every day we are busier and busier,” he said. “And I would still say half of McAllen doesn’t really know about us.”
He said having a specialty business helps because people keep coming back for the special products once they find out about the business and decide they like it.
While the concept is a core component of a recession-proof business, Millet also said being located near Mexico has given a lot of McAllen business the upper-hand over the last two years.
“A lot of people from Mexico are using the restaurants here,” he said. “There are people that prefer 17th Street. There are also people that feel more comfortable and more safe coming (to the U.S.) to enjoy a night.”
And patrons from this area are exactly what Rendon said local businesses need more than anything nowadays.
“We need the community,” he said. “We need the locals to support their own people.”
Hope is not gone for Rendon; he said he will continue to watch the progression of the economy and will consider re-opening Woodlands elsewhere. But for now, he’s packing up the décor of the restaurant and putting boxes into storage.
“It’s part of business,” he said. “That’s just the way it is.”
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Lindsay Machak covers law enforcement and general assignments for The Monitor. She can be reached at (956) 683-4462
