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Restaurateur Burt Rapoport had high hopes for his newest venture, Clematis Social, on bustling Clematis Street in downtown West Palm Beach.
Billed as a chic neighborhood restaurant, Rapoport designed a menu around affordable small plates that he thought would be popular with value-conscious diners. The timing seemed right, too, as Clematis Street entered its latest revival.
Rick Sheridan takes out a speaker at the former Clematis Social restaurant. With its affordable small plates, Burt Rapoport was optimistic about the venture when it opened in December in West Palm Beach, but he closed it in June. 'I have never seen such a softness in the restaurant business,' he said. (Chris Salata / The Post)
But on June 27, the celebrated restaurateur did the unthinkable: He closed Clematis Social after only six months.
“It’s been extremely frustrating,” Rapoport said. “I thought the menu was perfect for its time. It just never took off.”
If a veteran like Rapoport is finding the restaurant business tough sledding, other restaurant owners had better be bracing, too — especially as the region settles into its traditionally slow summer season.
“It’s going to be a long, hot summer,” said Bill Watson, an owner of West Palm Beach’s Big Time Restaurant Group, owner of City Oyster, City Cellar, Rocco’s Tacos and Grease Burger Bar restaurants.
To be sure, many local eateries are making it by competing on price, and even gimmicks. But this past winter tourist season was especially brutal, and most were unable to stash profits away to create a financial cushion for the slower summer months. Stock market losses, plus rising bankruptcies, foreclosures and unemployment rates, all have combined to crimp consumer spending.
“In the 30 years I’ve done business in South Florida, I have never seen such a softness in the restaurant business. (The winter) season was almost a non-season,” said Rapoport, who opened Clematis Social at the height of the season in December.
The pain is widespread, as eateries from Tequesta to Boca Raton vie for business they thought would come from the housing boom. Instead, many find themselves just trying to ride out a bust.
The result: Some restaurants will be sold, while others will close during what could be a make-or-break summer.
“Everyone — from mom-and-pops to established chains — is suffering. It’s going to be a train wreck out there,” said Paul Emmett, president of Duffy’s Sports Grill, based in Palm Beach Gardens.
Expense accounts take hit
The problem is particularly acute in places such as Palm Beach Gardens, where dozens of new restaurants chased housing growth in the northern part of the county, said Tom Prakas, a restaurant broker with the Prakas Group in Boca Raton. Meanwhile, chain eateries compete for family dining dollars in suburbs out west, while upscale establishments clamor for the once-bottomless dining dollar in wealthy cities such as Boca Raton and Palm Beach.
Now restaurants are closing clip-by-clip along PGA Boulevard, and chichi steakhouses are fighting it out for the remaining big spenders in town.
Jerry Greenbaum, owner of the longtime New York Prime steakhouse in Boca Raton, said the city’s seven steakhouses are way too many for one area, and he’s feeling it. Not only is he up against Ruth’s Chris Steakhouse, Morton’s, Chops Lobster Bar, Abe & Louis and the newest players, Capital Grille and III Forks, but the recession also has led to a steep drop-off in business entertaining.
“We used to have pharmaceutical companies bringing 30 or 40 people at a time,” Greenbaum said. “But expense accounts have taken a hit.”
Some restaurant owners say they plan to stay afloat by keeping a close eye on costs.
Jacob Thiery prepares a pasta dish at the Italian Oven Cafe at CityPlace in West Palm Beach. 'We're not happy with our sales,' said owner Jim Frye, who opened the eatery in September. 'But if we can get through the summer, we'll still be standing.' (Richard Graulich / The Post)
Jim Frye opened his Italian Oven Cafe at CityPlace in West Palm Beach in September — just as the stock market tanked. Since then, Frye has learned to watch his overhead carefully, even trimming dinner staffing if the lunch business is slow. “You’ve got to manage your business on a day-to-day basis,” he said.
Frye admits business still is a struggle, even though his eatery is in the growing fast-casual category. Indeed, the Italian Oven Cafe recently was named one of seven top fast-casual independent operations in the country by Fast Casual Magazine.
“We’re not happy with our sales,” Frye said, “but if we can get through the summer, we’ll still be standing.”
For other eateries, discounts and promotions are the way to survive. From the high-end to the family restaurant, the buzzword these days is value.
Among the boldest dining offers going on now is at Bova Cucina in Boca Raton. The Italian restaurant has started offering a rock-bottom $9.95 deal on a three-course meal all day, every day. The offer has prompted lines out the door by customers — and complaints by rival restaurant owners, who say they just can’t compete with that pricing.
But others say low meal prices are necessary.
“You can’t beat a $5.49 all-you-can-eat business concept in this economy,” noted Dave Porto, of Bellante’s Pizza and Pasta Buffet in West Palm Beach. Also going low is Duffy’s, which is packing customers in on Monday nights with its $9.95 dinner deal on any entree.
Dining deals have a downside, however. More and more deals are being offered, and once they start they are hard to stop, said Harry Balzer of NPD Group, a consumer marketing company.
Watson, of the Big Time Restaurant Group, thinks the market already may be oversaturated: “The response to our summertime specials isn’t as strong as it used to be.”
Still, restaurant owners seem afraid not to discount. That’s because the depth, and length, of the recession is hurting even the most seasoned operators.
Local industry watchers were shocked to learn that venerable restaurateur John Spoto and his restaurant companies were sued for allegedly failing to repay two bank business loans totaling $1.6 million. Spoto operates Spoto’s Oyster Bar and Oakwood Grill in Palm Beach Gardens. Spoto did not return a phone call seeking comment.
Festive atmosphere a draw
Not every new restaurant concept is having a tough time, however. Consider the success of Rocco’s Tacos on Clematis, a lively Mexican concept with low-priced food.
Rocco Mangel of Rocco's Tacos in downtown West Palm Beach takes a turn at assembling guacamole. The Clematis Street restaurant's Mexican concept and low prices have proved successful in a difficult market. (Lucas Cannistraci / The Post)
Another new Palm Beach County venture finding success: Ouzo Blue, the Greek-themed dining and entertainment venue. Ouzo Blue opened in December in Lake Worth, then quickly added a new location in Palm Beach Gardens. Now it’s scouting for a spot in southern Palm Beach County — its third restaurant in seven months — said Alan Koch, president of restaurant brokerage Score Realty in Palm Beach Gardens.
Koch said affordable food, plus a festive atmosphere, seem to be the key to luring customers seeking to escape their recession troubles. That’s clearly the thinking behind Karim El Sherif’s Carousel Can-Can Cafe, set to open later this month in CityPlace. It promises value-priced food with lots of fun, including can-can dancers.
“People are very excited,” El Sherif said. “Everyone says, ‘This is so cool. When are you opening?’ ”
And the recession has done El Sherif a favor, giving him a prime location in the former Mark’s restaurant space. “It was a great opportunity,” he said.
Even as new eateries take a chance and open, existing ones continue their quest to survive.
Kona Grill, a Scottsdale, Ariz.-based contemporary restaurant with an Asian flair, is still finding its way after opening at CityPlace in 2008.
“We’re doing OK, but we haven’t been doing what we’d like,” said Mark Bartholomay, Kona’s chief operating officer.
“Usually we open up, and our happy hour gets people in, and we’re on our way,” Bartholomay said. But bar customers aren’t sampling the food, so they’re not getting a taste of what Kona Grill has to offer.
Amid an area awash with dining options, “we’re trying to find that local guest,” Bartholomay said.
Staff writer Allison Ross contributed to this story.
Dinner a la Facebook: Creative strategies stir business
When business is slow, restaurant owners say frequent and creative marketing is more important than ever.
Duffy’s Sports Grill is one restaurant company that is doing heavy advertising, especially of its dining deals.
“We need to promote aggressively on the value side in order to maintain our share of the market,” said Paul Emmett, Duffy’s president.
Pistache French Bistro in West Palm Beach is offering a dining deal, as are many other restaurants, and also will host a street party this month. (Uma Sanghvi / The Post)
The use of social networking, such as Facebook, has proved helpful to Pistache French Bistro, which opened a year ago on Clematis Street in downtown West Palm Beach. As a result: “We’re in a good place. We had a good season,” owner Thierry Beaud said.
To keep momentum going, Pistache plans a street party on July 11, the Saturday before Bastille Day, July 14. The event is in addition to the summer special of a three-course dinner for $29, plus a bottle of wine for two.
“It’s our duty in this economy to offer a great value,” Beaud said.
Zed451, an upscale steakhouse in Boca Raton’s Mizner Park, uses Facebook and Twitter to get the word out about its dining experience — and aggressive summer deals — said Tim Gannon, restaurant manager.
Zed451 has slashed the price of its prix-fixe menu, so diners can enjoy the table-side offering of meats and fish, plus salads and cheeses, for $39 — down from the regular $55.
Steve Byrne, director of culinary operations for Tavistock, Zed451′s parent, said diners love the food and ambiance of the restaurant, which underwent a renovation estimated to cost about $8 million.
But the $55 prix-fixe price point may have been a psychological barrier for some diners, who have hesitated to come in. With the new lower prices, the past several weeks have been busier, Gannon said.
Still, “we need to get more people knowing about it,” he said. Radio ads are slated during the next few weeks.
Finally, consider Bice Bistro’s creative approach to attracting customers.
The Feast of St. John the Baptist on June 24 was marked at the Palm Beach Gardens eatery not with a prayer, but with a two-for-one drink offer — and a complimentary glass of wine for all patrons named John (or female variations, such as Joanna).
Bice’s Giovanni Polito said a portion of the night’s proceeds went to support charity, which he says can be overlooked in the slow summer season.
But he’s also hoping for a little divine bounce from the event: “In this market, we need a saint on our behalf.”
THIS ARTICLE is quite the LAUGH. Rappaport Failed, and I have the reason: simple- a skirt steak for 24$? are you f’ing kidding? The help at The Clematis Social was atrocious, and, the two times i was subjected to eating there, I had to endure truly horrible, and I mean HORRIBLE music that was blasting top volume in the place so as to attract the club goers outside. Besides the rudeness of the staff, the prices were outright obscene. The food was passable, but in this economy, his prices were simply asking to go out of business.Rocco’s tacos affordable? are you mad,sir? 24.95$ for ten tacos, and thats just for those, is a bit pricey,no?
Clematis social didn’t close they were evicted …… the notice was on the door for 2 days final notice from the sheriff’s department
pbpulse.com has a picture of the eviction notice
Where can you go eat mexican for 10 tacos less than $25. If you are trying to spend less than $2.50 for a taco, go to Taco Bell. Then again if you get anything other than a soft taco it will be more than Rocco’s. Rocco’s has THE Best food and atmosphere for the price in Palm Beach County.
You think THIS place was bad, wait until you try Rappapert’s newest waste of time, “Dick 84.” My guess is he will be evicted from there as well! Could it be any more expensive for a well drink? Can it be any friggin LOUDER? I thought this guy was supposed to know what he is doing?
Restaurants that serve good food at a reasonable price are doing fine. The trendy places with expensive food are suffering and would do so regardless of the economy. Here are some problems with the “trendy” places:
1. too expensive
2. fancy names for the same old food
3. loud, obnoxious customer’s
4. poor attitude of servers
5. bad service disguised as “leisurely dining”.
Trendy anything can’t expect to be around long.
Italian Oven has great food,friendly service and not having to tip is an exceptional concept especially during this tough economy. For the quality of food you get the price is great. I have NO DOUBT they will be around for a long time.
I concur. I love Italian Oven. Went in on a whim the other day and was so pleasantly surprised. The prices are college student scale for fresh, great tasting, food. Portions are normal size, not jumbo. Who would of thought that would be a concept, seems like a no brainer to me.
I’ll stick to dining out at Wendy’s and Taco Bell.
Clematis Social Club
a. Menu was all over the place. It seemed like a menu made for filling food orders for Clematis street bars who needed apps for their guests. Items did not seem to work well together if you wanted a first course, second and dessert.
b. Design of interior and menu was not appealing. Who wants to sit at a booth and look accross at a pictorial motif of local folks looking back at you as you dine.
c. Rocco’s Tacos….packed…..Clematis Social ….nottt that should be a clue that your business model is not right. Same price point totally different response.
d. Number of years in the bussss does not mean your concept is right.
Too many Palm Beach County restaurant owners fail to realize the majority of residents in the county are not on expense accounts, are not tourists with unlimite budgets and do not live on A1A. If the owners want to continue to over-price their menus they deserve to go out of business. The other problem is the attitude of many servers. They too feel most customers are tourists and they do not take time to win over locals to return to the establishments.
I go out to eat a lot and Rocco’s tacos is not low priced food, especially, for mexican. My family , three of us, had lunch there and the price tag was $61.00, not cheap! Also, I’m not into paying for chips and salsa!
The problem with most of these places is the food is mediocre. I for one am tired of going out to eat and paying for average food, drinks, and service! I have decided,I can cook a great meal at home, make much better drinks and save money!
The market is saturated with high-end eateries that offer little to please the consumer. John Spoto should be run out of town for what he considers service. His waitstaff are a joke…aweful. It’s not only Spoto that needs to go back to school and retake restaurant 101, it’s rampant. The fish rots from the head down, so blame the failure on the owners and managers that have failed to do what they had to do. Kee Grill does a great job though. As does Samantha’s in Jupiter. Other places could learn from these two hotspots.
We live close to downtown WPB and eat out twice a week, but never at restaurants on Clematis. Why?
-overpriced food that tries too hard to be trendy instead of tasty
-surly wait staffs who somehow think they are superior (hel-LOH..you serve food!)
-minimal opportunities for outdoor dining
-parking meters
-a sad, sad retail scene
-a fairly dead street scene
There are a couple of restaurants we frequent at CityPlace (Wild Ginger, City Pizza (and Bellagio for special occasions)because the prices are right, the food is delicious, and the servers are charming. And we often drive to downtown Lake Worth where the prices are really right, servers look like they enjoy their jobs, outdoor dining is everywhere, and the street scene is alive and vibrant. The WPB Downtown Development Authority and restaurant owners should spend some time in Lake Worth.
This article is disturbing, especially to those who are in the food industry and doing well for none of these reasons. Furthermore, because a so called restaurateur fails, just as his hero, egotistical neighbor did, does not mean the food industry is going to shame. We live in South Florida and there is still money being spent, just not stupidly. Our consumers are smarter than ever and understand that the quality of food and serve is most important. Listen, quality products cost money! All these “meal deals” have me questioning what is actually going on. Are restaurants turning to the McDonald’s philosophy for survival? As a few others have responded, the good restaurants, serving fresh food everyday, at fair prices will continue to be busy. Consistency in quality and service is what it is all about, ANYWHERE!
New York Prime is the most overrated restaurant I have ever seen. I frequent upscale steakhouses almost exclusively. After moving to Boca Raton three years ago my girlfriend and I started looking for a great steakhouse. We tried them all, New York Prime, Abe and Louies, Chops, Mortons, Ruths Chris, Trulucks, and most recently 111Forks. We heard so much aboaut New York Prime that we were very excited and anxious to try it out. Our first visit was horrible. The bartenders were obnoxious and rude. Becasue we were new and not one of the regulars we were pretty much ignored all night. Ususally we have several drinks, and we drink the good stuff, after getting our first drink and placing our order for a $50 bone in ribeye we were never served another drink. The bartender was too busy talking with regulars. The steak was served very much under done, we order medium rare, this steak was virtually raw. The bartender was obviously bothered by our request to have it cooked slightly longer. Still no more drinks. We had their famous hashbrowns and some asparagus for sides. Bioth were bland and nothing special. The hash browns were greasy and cold. The live entertainment duo that was playing was located directly in front of the bar and was annoying more than entertaining. The place was packed so we chalked it up to a bad night and decided we would return and give it another shot. After all, their reputation was so great.
We did return a few months later after trying every single one of the restaurants that I mentioned above. All were better than New York Prime, with Abe and Louis being the best by far. Friendly bartenders and excellent perfectly cooked steaks every single time. Mortons used to be a favorite, as we have dined in them throughout the USA. The one in Boca leaves much to be desired as they have certainly gone way downhill, but still are much better than NY Prime. Our second visit to NY Prime was almost identical to the first…very bad service and overpriced lousy steaks. If that place is suffering it is because people may finally be wising up and avoiding an overpriced lousy establishment. I am glad to hear that they are seeing a downturn in business. I hope that they are not foling themselves and blaming it on the economy, because the truth is that they are obnoxious and ignoring the fact that the steaks and the service have to get better. One can not survive on a false reputation. Trainign of the service staff and taking a good hard look at what they are serving and making the needed corrections is the only course of action that will reverse the trend of an overrated restaurant like NY Prime.
Thought I might recommend Okeechobee Steak House on Okeechobee Blvd. just west of 95. It’s an institution, family owned and around forever. Their wait staff (I heard) has been there an average of 10 years. It’s like stepping into an old NY style joint. This is not cookie cutter. Try it, you might like it. It’s the only steak house I visit – and dinner is free on your B-day! I think that’s a nice touch, whether you can afford it or not.
I travel to this area frequently from Atlanta and my favorite is Rachel’s for both lunch and dinner. Their lunch buffet has always been the best deal in town – I think it’s $12 and on Wednesday they have prime rib on the carver station that’s included in the price!
Their steaks have always been the best but pricey, but now they’ve got a $30 three course dinner special.
I was sorry to see their longtime maitre de Danny Winters leave. He made an incredible Banana’s Foster at your table. But the new guy, Alex, seems friendly and capable.
I love hearing all the opinions that surface on these columns lots of spot on info. I can only ad that Rocco’s Taco’s is some major fun and worth the price, as for the other review of Clematis social I believe if the times were normal it would have thrived Burt knows how to turn out a restaurant but in this economy you can not compare. Everyones main competition is dinner at home.
Clematis Social failed because the food sucked plain and simple. Downtown West Palm Beach is thriving with some great new additions over the past year.
Boca on the other hand is a joke. Companies saw growth potential without doing their research. Consumers in this town live on credit, now that has had dried up, the restaurants will. As for the steakhouses they are forgetting about the private one in that big pink building, the total is actually 8 within a 5 mile radius.
Bova just shot themselves in the foot, we will see this article in a year or two titled, “We just couldn’t get our price points back up”
Are you kidding me, every restaurant I go to is packed. I think people are still willing to spend their money on food.
I think the price point and burgers at GREASE on Clematis are good, and that the place has a lot of potential. BUT – the service is 100% terrible. Its like they hired wait staff that ate lead paint chips as kids. I went there last Sunday, sat at a table for 15 minutes, waiter passing several time, and zero service/acknowledgment. I just got up and left – gave my money to [another] less-expensive burger joint.
Totally agree – the service at Grease blows the big one! I don’t know how they stay in business.
The managers were sitting in back hanging out with the waiters – we had to get up three times to get our own mayo, silverware and drink refills from the bar – won’t be back anytime soon
you want good food for the price and a great atmosphere???? captain charlie’s reef grill in juno beach….best seafood in south, maybe all of florida…ross the owner is always there, always cheerful and the staff is great…..
you want the best deli in south florida for a reasonable price? three g’s in delray…..but expect to wait……they do business like to food is free.
best corned beef in south florida? jacob’s deli in boynton beach….also unbelievable vegetable soup…..
bon appetite….
Italian Oven, as good as the food is, and as good as the concept is, suffers from one major obstacle to surviving…location, location, location.
The truth of the matter is you won’t be able to pay your bills if your concept doesn’t bring in the revenue. Can anyone guess what the rent is in CityPlace (even on Rosemary)? How many guests have to walk through the door to pay $10-20k/month in rent…alone.
Sad truth is the Italian Oven would survive if they re-located somewhere else quick. The concept isn’t appropriate for the location, and/or the market.
Write this down…they will be out of business next summer, if not before. It’s sad, because the food is really good. Relocation to an area that is more price sentitive in a normal neighborhood would be better. Who did their market research?
I’ve been consulting for years in many capacities, and the truth of the matter is:
-Having money to throw around doesn’t guarantee success,
-Having a great concept doesn’t,
-Having great food doesn’t,
-Having cheap prices doesn’t,
-Having anything trendy doesn’t,
-Having experience doesn’t,
-Even having ‘a great location’ doesn’t.
However, great service offers the best possibility of success. Too bad so many area managers and servers just don’t get it. Neither do we, the customers, for that matter.
DO NOT FREQUENT ANY BUSINESS THAT OFFERS POOR SERVICE FOR WHATEVER REASON. LET THEM GO OUT OF BUSINESS. GO OUT OF YOUR WAY TO BUY FROM THOSE THAT CARE ABOUT YOU, AS A CUSTOMER, AS A PERSON.
Indifferent staff and management is the quickest way to never see me again. And if I don’t see the value, what else is there?
If we continue to settle for poor service an high prices, just to impress our friends or live lifetyles we can’t afford; that is what we will be left with.
Italian Oven: Right on the money about the service. Well said. That is the absolute truth.