Photo credit: atlanta.eater.com
The recent wave of restaurant closures in Atlanta’s West Midtown caught many off guard, yet the local community’s reaction was surprisingly subdued. Recent reports from Eater highlight that many residents anticipated this outcome, primarily pointing to the escalating parking costs as a critical factor.
Across various comments on social media, one issue repeatedly surfaced: parking.
Parking in this auto-centric city has become increasingly burdensome, particularly as rideshare fares have risen by a median of 7.5 percent in 2024, according to Gridwise, Inc.
National parking reservation platform SpotHero reports that parking costs in Atlanta start around $15 on average — comparable to rates in Miami and not far off from New York City’s weekend pricing, yet higher than those in Los Angeles and Chicago.
Adding to this pressure, Atlanta has installed over 2,400 parking meters capable of charging until as late as 10 p.m., under the 2009 ParkAtlanta initiative. These meters transitioned to ATLPlus control in 2017, aiming to streamline the parking experience.
As the city continues to expand, parking rates that once seemed manageable have turned into significant expenses. Although a few free parking opportunities remain, the challenges include unclear signage and various regulations, creating a complicated situation for those choosing to dine out. The ongoing transformation of neighborhoods into vibrant hubs, such as the Works and Abrams Fixtures, contrasts sharply with the stagnation in public transit development. This lack of affordable parking options has become a substantial barrier for both potential diners and restaurant owners.
Key Stakeholders in the Parking Dilemma
The illusion of choice for consumers is shadowed by the reality of conglomerate ownership. Parking services in Atlanta are similarly consolidated, with ATLPlus also incorporating Mobile +. This service unifies several applications like Parkmobile, Pay By Phone, Flowbird, and more. Mobile + itself operates under SP Plus (SP+) Corporation, which manages parking operations in over 100 cities and was recently acquired by Metropolis Technologies, Inc. for $1.8 billion, solidifying its position as the largest parking network in the U.S.
Essentially, the public parking sector is a booming business in Atlanta.
In addition to municipal partnerships, corporate entities like LAZ Parking dominate the market. Dubbed “the fastest-growing and second-largest parking company nationwide,” LAZ operates 129 locations throughout Atlanta, encompassing hotels and commercial spaces, with pricing that ranges widely from $2 to $14 per hour. For example, some venues charge as much as $60 for exceeding validated parking limits.
As chef Pat Pascarella observes, smaller dining establishments must navigate challenges posed by larger corporate entities profiting from parking. “With rental prices skyrocketing [Atlanta’s prices are increasing at double the national pace], it’s unreasonable for property owners to also impose parking fees — it’s a double dip,” he explains, expressing the frustration of local restaurateurs.
Impacts on Stakeholders
While consumers are directly affected by rising costs, restaurants also face significant burden as they manage parking expenses. Compliance with local parking regulations often necessitates a meticulous calculation of overhead costs that can vary widely based on customer traffic. Many restaurant owners feel they are “at the mercies of their landlords,” a sentiment echoed in conversations with various affected sources who requested confidentiality out of concern for backlash.
“We expected complimentary parking at Star Metals, considering our other locations provide it. We were mistaken,” reveals Jasmine Yates, manager of Lucky Momo Hospitality. The establishment has resorted to covering parking for customers to mitigate costs, bifurcating the parking rates based on lot selection. Likewise, employee parking presents added expenses, leading to ongoing negotiations for better arrangements.
In some partnerships, validation costs are distributed among tenants based on their occupancy space, yet these figures are only disclosed periodically, complicating financial planning. As an example, Xiong from Snap Thai Fish House notes the struggles in adapting to new parking time constraints and argues for reconsideration of a more favorable two-hour limit for diners.
For independent restaurants, the unpredictability of parking expenses can lead to staggering bills. At Bastone, the lease terms entail both renting adjacent parking spots and hiring valet services, amounting to nearly $4,000 a month that the restaurant absorbs. In comparison, Pascarella shares that at Grana, he incurs a yearly $24,000 parking rent fee.
Notably, premium eateries like Lazy Betty incur substantial costs as well. According to chef Hsu, this expense can exceed $40,000 annually for parking space.
Disparities in contract terms can complicate costs for restaurateurs across different venues, compelling them to decide strategically where to allocate parking validation. For example, Tal Baum’s Oliva Restaurant Group pays a premium for lunchtime valet at Carmel, while the strategy at Bellina Alimentari emphasizes cost management, where validating self-parking could wipe out the already thin profit margin.
Customer perception intertwines closely with accessibility. Chef and owner Jason Liang notes the association of parking convenience with overall value, which influences diners’ choices. As Rossmeisl further emphasizes, the burden of parking often overshadows qualities like food and service, simultaneously deterring potential guests and reducing overall enjoyment of the dining experience.
Exploring Alternatives
In contrast, establishments like Omni Atlanta Hotel at Centennial Park offer free parking, managed strategically through partnerships, enhancing their appeal to locals at New South Kitchen. Similarly, the Burgess Hotel in Buckhead also opts for self-parking without charges, making its restaurant offerings more competitive.
Developments like Atlantic Station provide further benefits with complimentary parking and convenient access to public transportation, promoting visitor attendance.
The Works development initiated an $18 million investment in parking solutions, contributing two free hours to entice visitors. Juan Calle, co-founder of TQM Hospitality, appreciates this arrangement, citing minimal cost impact for his venture, Chicheria.
Suburban Appeal
The suburban regions surrounding Atlanta, like Alpharetta and Sandy Springs, offer city-managed parking facilities, attracting businesses and consumers looking to escape high city expenses.
An anonymous spokesperson from Sandy Springs noted that maintaining such amenities incurs significant costs, thus emphasizing the strategic importance of affordable parking in fostering community support. Efforts to enhance parking infrastructure in places like Alpharetta aim to boost local business engagement.
This trend has led to some established Atlanta restaurants exploring opportunities outside the Perimeter, with venues like Delbar and South City Kitchen opening suburban branches. New developments such as Avalon in Alpharetta represent this shift, highlighting changing dining preferences as businesses capitalize on improved parking provisions while West Midtown struggles with recent closures.
Kasey Cheng reflects on the neighborhood dynamics, noting that parking availability directly influences diner decisions, indicating a need for improved strategies as seen in neighborhoods grappling with restaurant retention despite quality offerings.
The expenses linked with parking can create initial resistance to dining out, particularly when compared to takeout alternatives, cautions Hsu, highlighting a gap between consumer expectations and practical realities.
Future Considerations
Despite prevailing challenges, Rossmeisl remains optimistic about West Midtown’s vitality, asserting that it is crucial for businesses to remain adaptive. His establishment, along with others, contends with parking complexities but continues to advocate for patrons through innovative approaches. As the city grapples with how to deal with these pressing parking issues, restaurateurs affirm their commitment to evolving alongside ongoing transformations in the urban landscape.
Source
atlanta.eater.com