Downtown Edmonton Faces Restaurant Exodus: Six Establishments Close Amidst Ongoing Challenges

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

A concerning trend has emerged in downtown Edmonton, where at least six restaurants have shuttered their doors since the beginning of June. Industry insiders, including former restaurateur Maheik Bhasin, are sounding the alarm over the myriad challenges facing the local dining scene. Bhasin, who previously managed Khazana—an Indian restaurant that served the community for 28 years—attributes the closures to a combination of factors, primarily citing disruptive construction projects.

Construction Chaos and Confusing Detours

Khazana, located on 107 Street near 102 Avenue, was among the first to announce its permanent closure this summer. Bhasin explained that the restaurant suffered due to extensive construction work in the area, including the development of O-day’min Park and the implementation of bike lanes, which have severely restricted vehicle access. She lamented, “The whole planning, or lack of planning, needs to be revisited,” highlighting how the confusing detours discouraged potential patrons.

As foot traffic dwindled, Bhasin revealed that the financial strain became unbearable. “We used our savings to entertain city projects,” she added, reflecting a sense of despair among business owners who feel abandoned in their time of need.

A Growing List of Closures

Following Khazana’s closure, several other establishments have announced their permanent exits from the downtown scene. Among these are Greta bar, kb&co, Kommune, Bündok, and PlayWright. Chris Decock, owner of Greta bar, shared his frustrations in a letter detailing the multifaceted challenges he faced operating in the city centre. He noted that it wasn’t a singular issue—be it rising taxes, fees, or safety concerns—but rather “death by a thousand cuts,” as year after year, operational difficulties compounded.

“With every passing year, investing in downtown became a little riskier,” Decock explained, encapsulating the sentiment shared by many in the industry as they grapple with the changing landscape.

Safety Concerns and the Impact of Construction

Cheryll Watson, a member of the Downtown Revitalization Coalition, echoed the pressing concerns surrounding safety and access, which have deterred both consumers and business investments. The ongoing construction of the Valley Line LRT and various roadworks have left many businesses struggling to maintain foot traffic. Watson underscored the urgency, stating, “Right now, we have businesses that have their access impacted for months—if not years. How do you survive in that situation?”

In April, the coalition released a set of recommendations aimed at addressing these issues, calling for enhanced integration of transit and policing services, as well as better management of construction projects. Watson’s remarks illustrate the broader implications of the current climate, asserting, “This is not just a restaurant issue. We have an economic crisis downtown.”

City’s Response and Future Outlook

Tom Girvan, the City of Edmonton’s director of downtown economy, acknowledged the grim reality of local businesses closing but emphasised that each case is unique. He described the city’s efforts to bolster downtown through significant financial support, including the Downtown Action Plan Fund, which allocates $3 million for community-led projects, and the Downtown Vibrancy Fund, which has channelled over £14 million into various initiatives.

Despite these efforts, Bhasin remains sceptical about the city’s commitment to supporting local businesses. “It feels like nobody cares here,” she lamented. “And at this point, why would people want to live in Edmonton?” She urged city planners to reconsider their approach to future projects to prevent further losses in the community.

Why it Matters

The closure of these restaurants is not just a loss for the individual business owners; it reflects a broader economic downturn that could have lasting consequences for downtown Edmonton. As the city grapples with safety concerns, construction disruptions, and dwindling customer traffic, the repercussions extend beyond the dining sector, potentially affecting retail and other local businesses. If these issues are not addressed, Edmonton risks losing its vibrancy and attractiveness as a destination for residents and visitors alike, jeopardising the very essence of its urban community.

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