Business Spotlight: What's With All the Recent Closures?

In recent months, it seems as though a local business had closed its doors almost every week.

From the closures of longtime restaurants like and to businesses that barely made their one-year mark, it makes one wonder, is the struggling economy still to blame?

According to Bill Lambert, Alameda County's assistant director of economic development, retail recovery does not seem "near at hand" for local independent stores. He told Castro Valley Patch that his department deals with a plethora of factors when it comes to their success.

"Marketing, product offering, pricing, customer service/satisfaction, access, parking, a business’ financing structure, retirement, rent, family issues — the list goes on," he said.

Mike Tanzillo of MTC Commercial Real Estate agreed there is no single factor that leads to a business' success. However, one of the biggest decisions a business owner can make is location, which dictates rent. In Castro Valley, rent varies between $1 to $2.5 per square foot per month, according to Tanzillo.

and , two longtime restaurants in the 580 Market Place shopping center, faced evictions this year by the property management company, Weingarten Realty Investors.

Shortly after his eviction, Palomares Cafe's owner Shebli Massarweh signed a lease to . He told Patch he could no longer get by paying more than $15,000 a month on rent at the former location.

Tanzillo pointed out that rent tends to be highest in areas like the 580 Market Place because of anchor stores like Safeway and that keep the property value up. In addition, many companies in that location can afford these higher rents compared to individual business owners.

"Rents are like cars. It depends where [a business] is and what you have," he said.

Tanzillo said two other major factors to a business' success are the owner and what he or she is selling.

"A business is only as good as the person who runs it and the service it sells," he said.

Despite restaurants having the biggest fatality rate, Tanzillo said they tend to be the current trend in businesses opening these days. He said about every 10 to 20 years, trends change based on people's lifestyles.

One of the year's biggest stories was the in June, after staying in business for 63 years. Owner John Banchero said he was ready to retire and spend more time with family. The closure brought a slew of comments from Patch readers sharing their memories of dining at his establishment over the years.

However, on the other hand, , closed its doors after staying open for only six months. According to Lambert,.

"If you don't know what you're doing in the restaurant industry, you'll fail miserably," Tanzillo said.

When it comes to retail, Tanzillo said it is rare to see stores selling specific products succeed in today's market. Most businesses sell either a service or food.

After four years, due to several factors, including lack of sales and the impact of the Castro Valley Boulevard construction. In previous months, despite the .

A few locals concerned of the growing number of empty storefronts started the Castro Valley Cash Mob, grassroots movement where shoppers patronize a selected business on a given day with $20 in hand. However, the Cash Mob was unable to save , which closed a month after having one at the store.

Tanzillo said the boulevard streetscape project will be well worth it for the businesses that are able to stick it out through the construction phase. due to underground utility conflicts.

"I think it's important. I've seen streetscaping areas do well," he said.

Tanzillo describes Castro Valley as a bedroom community where most residents commute to work.

"Most of the businesses are supported by the people that live here," Tanzillo added.

Lambert's suggestion to residents on preventing any other businesses they enjoy from going under: "shop locally."

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