Ramon Rentas is an excited, happy and busy man these days. The Muscatine, Iowa, man fulfilled a dream on Wednesday, Oct. 16, by opening up a family-run restaurant called Jibaro de Puerto Rico in his hometown. “I love this town and wanted to bring Puerto Rican food to the people of Muscatine,” said Mr. Rentas, […]
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Ramon Rentas is an excited, happy and busy man these days.
The Muscatine, Iowa, man fulfilled a dream on Wednesday, Oct. 16, by opening up a family-run restaurant called Jibaro de Puerto Rico in his hometown.
“I love this town and wanted to bring Puerto Rican food to the people of Muscatine,” said Mr. Rentas, who moved to the eastern Iowa city from Puerto Rico in 2006 in search of a better life for his family.
He added that this is a great time to open a restaurant in the Quad Cities region because the “market is growing” for ethnic restaurants and people are in the mood for good meals.
“People want to get out of the house and try different foods, try different things…. They are always looking to go somewhere,” Mr. Rentas added.
It turns out that many restaurant experts agree with the Muscatine businessman and entrepreneur. This year will be the biggest year ever in sales for restaurants in the U.S., according to the National Restaurant Association.
The trade group says by the end of this year, restaurant sales will increase by more than 5% from last year and will hit $1.1 trillion; they will employ more than 15 million people; 94% of full-service restaurants plan to expand in some way this year; and restaurant openings increased by 6% from 2023 to this spring.
But there are also a lot of challenges. Topping that list is the continued struggles to find employees, increased labor and supply costs, meeting the changing expectations of customers, and adapting to changing technology in the business.
Still, there is much optimism in the eatery world. There seems to be fresh energy and vitality in the restaurant business sector, according to many in the industry.
“Restaurants are finding ways to adapt to the challenges of increased food costs and supply chain disruption,” Michelle Korsmo, president and CEO of the National Restaurant Association, said in a recent statement. “Restaurants have responded well to customers’ desire to have more opportunities to enjoy restaurant meals, which continues to grow sales, create employment opportunities, and foster a strong sense of community.”
Recent restaurant boom
That restaurant growth – and work of adapting to challenges – can be seen across the Quad Cities region in recent weeks. There have been several new restaurant openings (and re-openings with new ownership) in almost every nearby community. A small sampling of those new restaurants include:- Moline: 74 Pancake House on 19th Street, and the Take Cover Tiki Club on historic 5th Avenue.
- Rock Island: La Flama, Hinee’s Brew House and the Knyaw Restaurant.
- Davenport: The Lemonade Stand, Sushi Ect. by M.J.’s, Sushi Way, Kobe Sushi & Hibachi, and The Garrison, California Burritos.
- East Moline: D’Savor House.
- Geneseo, Illinois: Thai Town Cafe, based in Rapids City, plans to expand to this community in early 2025.
- Bettendorf: D’Lua Taco Shop and Siam Thai Cafe in downtown Bettendorf. The Plex area of northern Bettendorf has been especially busy with the addition of a McDonald’s, Pancheros Mexican Grill, Jersey Mike’s, Plus Saporis Mediterranean Latin Cuisine, Ting’s Asian Fusion and others.
Restaurant hot spots
“Bettendorf seems to be at a place where restaurateurs are looking for infill or next gen opportunities to start new business ventures. We are very fortunate to have a community that is excited and hungry for new restaurant options, and I believe that our small business community is rising to the occasion,” said Jeff Reiter, Bettendorf’s assistant city administrator. “With I-74 being completed, and with traffic flowing through Forest Grove (Road) now, there seems to be a movement afoot by restaurateurs to locate near these major commercial corridors,” he added. During the recent grand opening of Pancheros Mexican Grill at 5273 Competition Drive, the owners said restaurants are opening in that business neighborhood because this region continues to grow and attract visitors at the TBK Bank Sports Complex. Dan Sacco, one of the owners of the new Pancheros, pointed out at the opening that a sports tournament at the TBK complex during a recent weekend in October helped bring in many visitors who helped fill all the area’s restaurants. “(Restaurant expansion) depends on the market. We’re also in Dubuque (Iowa) and there’s not much expansion there. … This area is booming,” said Mr. Sacco. Bettendorf Mayor Bob Gallagher added: “I think the continued growth in the residential and commercial sectors in Bettendorf, as well as the terrific expansion in tourism at the TBK Bank Sports Complex, has created a need for restaurants of all sizes and dining choices. We are pleased to see so many restaurateurs bringing vast and varying options to our community.” The northern edge of Bettendorf isn’t the only growing area that is attracting new restaurants. Downtown Davenport continues to grow and attract foodies looking for a good place for a meal, said Kyle Carter, executive director of the Downtown Davenport Partnership, an affiliate of the Quad Cities Chamber of Commerce. He said the downtown area now is seen as “a destination” for visitors. “I think we’ve reached a critical mass of food and beverage spots downtown where we’re now seen as a destination that you know you’re going to find something you like if you just get here,” Mr. Carter said. “While it’s still competitive, the success of one place increases the likelihood our collective draws more people and grows the downtown pie.” He added that the many restaurants in the downtown area tend to help each other. That’s because visitors might come to eat at a specific restaurant, but end up bouncing around to other places because so many businesses are within walking distance.Eating out on the rise
Other chamber leaders also see a restaurant resurgence. “While COVID was really tough on the restaurant industry, the last few years have seen a resurgence in restaurant activity nationwide. People value the experience of eating out, and new small businesses are catering to specific niches,” said Brian Irby, the chamber’s chief operating officer. “We’ve been celebrating many new restaurants in the QC with ribbon cuttings and people have been welcoming and supportive of these new businesses.” Advocates for downtown Moline’s merchants say that the community has also been supportive of their new restaurants. Kirk Marske, Moline Centre program manager, said businesses and customers like the character and walkability of the district. “I think business owners and customers are drawn to Moline Centre because of the way the past and the present converge within this downtown commercial district. It is a very historic area, but a very vibrant one, too,” he said. “In all, downtown Moline Centre has about three dozen ‘eat and drink’ locations.” Across the river in downtown Bettendorf, D’Lua Taco Shop recently opened up shop in the former McDonald’s at 2460 State St. “People are very happy to have Mexican food here. … They were used to having just hamburgers and fries,” Judith Lua said recently. She, along with her husband, Pedro Lua, own the new restaurant. The couple opened the family-run restaurant in late September because they believe they can do good business in a region that is surrounded by other businesses that have employees looking for a good meal. (D’Lua Taco Shop is the fifth area restaurant opened by the couple. They also own D’Lua Pancake & Burrito House, 3419 Avenue of the Cities, Moline; Old Mexican Restaurant, 610 45th St., Rock Island; D’Lua Fusion Cuisine & Bar, 5185 18th St., Bettendorf; and D’Lua on the River, 1201 E. River Drive, Davenport.)Competitive industry
While happy to hear several other restaurants are also opening in the region, Ms. Lua said she also is a bit cautious about the business developments. That’s because she believes the area has a limited number of customers, and more restaurants means more competition for those patrons. Sometimes, more competition means some restaurants will have to close. In the midst of new restaurant openings, there have also been closures in the region. Some of those recent closures include the Combine Steakhouse in East Moline, Yoso Modern Japanese in Bettendorf and Catfish Charlie’s on the Moline riverfront closed Tuesday, Oct. 15. Even with the challenges, many people in the restaurant business are optimistic about the future. “The market is growing for me…. People around here want to get out and eat something different,” said Mr. Rentas.Restaurants: At a Glance
- In Iowa: 6,435 locations; $7 billion in sales; fourth largest private employer in the state; 144,000 restaurant and foodservice jobs; 9% of total jobs in state. – National Restaurant Association
- In Illinois: 26,543 locations; $42.6 billion in sales; second largest private employer in state; 586,100 restaurant and foodservice jobs; 10% of total jobs in state. – National Restaurant Association
- In the U.S.: There were about 749,000 restaurants in the U.S. as of 2023; more than $1 trillion in sales for 2023; 15.5 million restaurant and food service jobs; second largest private sector employer. – National Restaurant Association
- Economic forecast: Sales this year are forecast to top $1 trillion for the first time in history, and the industry is on track to add 200,000 jobs, pushing total employment to 15.7 million. – National Restaurant Association
- Expansions: 94% of full-service restaurants plan to expand their business in some way this year. – 2024 State of Restaurants Report
- Costs are up: 98% of operators say higher labor costs are an issue for their restaurant; 97% cite higher food costs; and 38% say their restaurants were not profitable last year. – National Restaurant Association
- Spending on eating out: Total spending at U.S. food service establishments is expected to rise 5.4% this year, to $1.106 trillion. – National Restaurant Association
- New restaurants: New restaurant openings increased 6% during the period from May 2023 to April 2024. – Restaurantdive.com
- New restaurants in 2023: 10,608 new restaurants opened in 2023, which is 5.7% more than in 2022. – 2023 Restaurant Trend Report
- Average spending: In the U.S., $48 is the average spend for dine-in orders and $31 is the average spend for takeout orders. – 2024 Diner Trends Report
- Spending per year: The average U.S. household spends $2,375 on dining and takeout per year. – Motley Fool
- Prices: 67% of restaurants increased their menu prices in 2023.
- Restaurant debt: $51,863 was the average amount of debt full-service restaurants carried in 2023. – 2024 State of Restaurants Report
- Online orders: On average, restaurants process 23% of business through online ordering. – 2024 State of Restaurants Report
- Restaurant failure rate: About 60% of restaurants fail in the first year, and 80% fail within five years of opening, according to the National Restaurant Association. However, a recent report on Owner.com states that only 17% of restaurants fail in the first year and about 51% survive past the fifth year.