Edmonton’s Downtown Faces Restaurant Exodus Amid Ongoing Challenges

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

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The heart of Edmonton’s downtown is experiencing a troubling trend, with six restaurants shuttering since June. Business owners like Maheik Bhasin, former operations manager of the long-standing Indian restaurant Khazana, attribute this alarming situation to a combination of construction disruptions and financial strain. As the city grapples with issues that deter foot traffic, local restaurateurs are increasingly voicing their concerns about the future of the area.

A Wave of Closures

Among the notable casualties in this wave of closures is Khazana, a beloved establishment that served the community for nearly three decades before closing its doors permanently in June. Bhasin highlights the debilitating effect of extensive construction projects in the vicinity, particularly the nearby O-day’min Park and ongoing work on the Valley Line West LRT. These developments have left the restaurant isolated from vehicle access, and confusing pedestrian detours have further dissuaded potential customers.

Bhasin reflects on the struggles faced: “The cost of running this beautiful restaurant is not easy. We used our savings to entertain city projects.” This sentiment resonates as the closures continue, with five more downtown restaurants—Greta Bar, kb&co, Kommune, Bündok, and PlayWright—announcing their permanent shutdowns.

A Ghost Town Atmosphere

Chris Decock, owner of Greta Bar, echoed Bhasin’s sentiments, describing the downtown area as increasingly desolate. In a heartfelt letter, he detailed the myriad challenges that have compounded over time, stating, “No single decision brought us here… It was death by a thousand cuts.” His perspective highlights the cumulative impact of rising operational costs, safety concerns, and the shift towards hybrid work models, which have all contributed to a less vibrant downtown.

The Downtown Revitalization Coalition has identified safety as a significant deterrent for visitors, compounded by construction projects that have disrupted access to many businesses. Coalition member Cheryll Watson has long warned city officials about these repercussions. “Right now, we have businesses that have their access impacted for months—if not years. How do you survive in that situation?” she asked, advocating for better planning and organisation of construction efforts.

Proposed Solutions and Ongoing Support

In the wake of these challenges, Watson has called for a strategic approach that involves smaller, segmented construction management styles to mitigate the impact on local businesses. Furthermore, her organisation has put forth recommendations aimed at improving safety and access, including increased police presence and the establishment of a 24-hour crisis response facility.

Tom Girvan, director of downtown economy for the City of Edmonton, acknowledged the difficulties faced by local businesses but emphasised the city’s commitment to revitalisation efforts. “The city has provided millions of dollars to support and encourage private investments in downtown businesses,” he stated, referencing funds allocated for community projects intended to stimulate interest and activity in the area.

Despite these efforts, the sentiment among business owners remains one of frustration and disillusionment. Bhasin’s poignant observation, “It feels like nobody cares here. And at this point, why would people want to live in Edmonton?” underscores the urgency for the city to reassess its approach to urban planning and support for local enterprises.

Why it Matters

The ripple effects of these restaurant closures extend beyond the immediate loss of dining options; they signify a broader economic crisis in downtown Edmonton. As local businesses struggle to survive amidst disruptive construction and dwindling foot traffic, the vibrancy of the city centre hangs in the balance. Addressing these challenges is crucial not only for the survival of individual establishments but also for the overall health of Edmonton’s urban environment. The future of the downtown area depends on effective collaboration between city planners and local business owners to foster a thriving community that attracts both residents and visitors alike.

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