Downtown Edmonton Faces Restaurant Exodus Amid Ongoing Construction Woes

Marcus Wong, Economy & Markets Analyst (Toronto)
5 Min Read
⏱️ 4 min read

In a concerning trend for Edmonton’s culinary landscape, at least six restaurants in the city’s downtown have shut their doors since June, prompting alarm among local business owners. Maheik Bhasin, former operations manager of the now-closed Khazana, an Indian restaurant that had been a fixture for 28 years, has voiced her frustrations about the mounting challenges faced by restaurateurs in the area.

A Convergence of Challenges

Bhasin attributes the closure of Khazana and the subsequent wave of restaurant shutdowns to the relentless construction projects surrounding the area. The development of O-day’min Park to the south, alongside bike lane installations and the Valley Line West LRT construction on 102 Avenue to the north, has severely disrupted access to businesses.

“Our restaurant became cut off from vehicle traffic, and the detours for pedestrians were confusing,” Bhasin explained, highlighting the detrimental impact on foot traffic. As customers dwindled, she lamented, “We used our savings to entertain city projects,” referring to the financial strain imposed by ongoing developments.

Khazana was not alone in its fate. Following its closure, at least five other downtown establishments—Greta, kb&co, Kommune, Bündok, and PlayWright—have also announced their impending shutdowns. Bhasin described the current state of downtown as “very sad,” likening it to a ghost town devoid of vibrancy.

The Toll of Urban Development

Chris Decock, owner of Greta, echoed Bhasin’s sentiments in a letter detailing the myriad issues plaguing businesses in the city centre. He noted that the challenges are not attributable to a single factor but rather a “death by a thousand cuts.” Multiple tax increases, fees for patio permits, paid parking, and the aftermath of the pandemic have all contributed to making downtown less hospitable for local businesses.

“No single decision brought us here,” Decock stated, underscoring the cumulative effect of various policies that have rendered operations increasingly difficult. The Downtown Revitalization Coalition has pointed out that safety concerns, exacerbated by construction and persistent roadwork, further deter potential customers.

Calls for Action

Cheryll Watson, a member of the Downtown Revitalization Coalition, has been vocal about the need for better planning and management of construction projects. “Right now, we have businesses that have their access impacted for months—if not years,” she remarked, questioning how businesses can survive under such conditions.

Watson has urged the city to implement recommendations her coalition proposed earlier this year, including integrating transit officers into the Edmonton Police Service and ensuring a consistent presence of law enforcement in high-priority areas. She believes that the current issues extend beyond the restaurant sector, warning of a broader economic crisis looming over downtown.

City’s Response and Future Outlook

Tom Girvan, director of downtown economy for the City of Edmonton, acknowledged the distressing trend of restaurant closures but maintained that each business faces unique challenges. He highlighted the city’s investment of millions into initiatives aimed at revitalising the downtown area, including the Downtown Action Plan Fund, which is set to contribute $3 million towards community-led projects by 2026.

Despite these efforts, many business owners, including Bhasin, remain sceptical. “It feels like nobody cares here,” she lamented. “At this point, why would people want to live in Edmonton?” Her plea for improved project planning is a call to action for city officials to reconsider how developments are undertaken to prevent further losses in the local business community.

Why it Matters

The closure of multiple restaurants in downtown Edmonton signifies more than just a loss of dining options; it reflects broader economic challenges that could undermine the area’s vibrancy and community spirit. If the city does not address the pressing concerns related to construction disruptions and safety, the trend could lead to a significant decline in the downtown economy, affecting not only restaurateurs but also retailers and service providers who rely on a bustling urban centre. Addressing these issues is imperative to foster a thriving and sustainable environment that attracts both residents and visitors alike.

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