Seattle Appetites Are Changing

DOWNTOWN

Bill Schwartz says he has become emotional twice over Henry's Off Broadway: once, when his company, which founded the restaurant on Capitol Hill in 1977, sold it in 1989; and again, at the start of this year when the new owners shut it down for good.

Indeed, with its shades pulled, its tables and bar stools empty, and its massive kitchen equipment silent, Henry's today is a sad place. Memories of celebratory dinners, prom-night dates and intimate moments hang in the empty air like stale cigarette smoke.

Henry's isn't alone. Since the first of the year, two other established, upscale restaurants in or near downtown Seattle have closed. Others have changed formats. Still others are rumored to be in trouble or have announced they'll close later in the year.

Eating-out patterns in and around Seattle are changing. While a glut of downtown and close-to-downtown restaurants fight for a declining number of customers, a new breed of stylish, but less expensive and less formal, restaurants are opening in many suburbs.

``The growth is in the suburbs and that has changed the restaurant industry,'' says James Hebert, president of Hebert Research Inc., a Bellevue consulting company.

And some say that is at least part of the reason some downtown restaurants are in trouble. Besides Henry's, the Mirabeau closed on New Year's Day after more than 20 years in business. For many years, it was literally on top of downtown Seattle - located at the top of the former Seafirst ``Black Box,'' now called 1001 Fourth Avenue - for many years Seattle's tallest building.

And, The Other Place, launched by Robert Rosellini in the 1970s, closed a few days after the Mirabeau, also hurt by downtown construction - a new building blocked its view of Elliott Bay.

Local restaurateurs say more restaurants are likely to close this year and in coming years - not just because of changes in scenery but because of fundamental changes in the market at a time of economic uncertainty. Change or die, say some experts, or have a clientele so committed to you that you can weather any storm.

``There are too many restaurants in the city right now - especially medium- to higher-priced restaurants,'' says Bill Schwartz, president of Schwartz Brothers Restaurants. The company owns 15 restaurants including three restaurants side-by-side on south Lake Union: Benjamin's Restaurant, Cucina! Cucina! Italian Cafe and Chandler's Crabhouse & Fresh Fish Market.

``What's going to make the difference between which ones survive and which don't? Location will be important. You'll also have to have a place that's fun and lively. And, in general, you'll have to be careful not to be too expensive,'' says Schwartz.

Schwartz knows what works and what doesn't. When his company ran Henry's, it was a premier Seattle restaurant. But the new owner couldn't make it. The restaurant went into bankruptcy reorganization in August and never recovered.

Schwartz Bros. is in the process of taking the restaurant back through a foreclosure because the new owners missed mortgage payments.

At the time The Mirabeau closed, owner Tom Cosgrove says the restaurant was done in by a combination of severe winter storms, gridlocked highways and The Goodwill Games, which he says kept people away from downtown in the summer.

Rick Giboney, vice president of marketing for Restaurants Unlimited, which owns Triples Seafood Bistro on Lake Union, Cutters Bayhouse near the Pike Place Market and the Palomino Bistro in the Pacific First Centre downtown, says the Mirabeau didn't keep pace with a changing environment for restaurants.

``The old Mirabeau was synonymous with special occasions, French dining. The owners tried to change the concept but keep the name. That was a fundamental mistake,'' says Giboney. Cosgrove couldn't be reached for a comment.

Giboney says he thought The Other Place had excellent food but a terrible location. Before the restaurant closed in early January and filed for bankruptcy protection, it had been at 96 Union St., near the Pike Place Market.

Trader Vic's at The Westin Hotel, which dates back to the 1950s, is closing in June. Management says the closure is because of remodeling of The Westin and not a lack of business. Still, it has no plans to reopen.

Le Tastevin in lower Queen Anne has been rumored to be in trouble for many months. However, Stephen Bosworth, director of operations for the restaurant, says the rumors are wrong.

``We've been hearing that ever since Pacific First called for payment of a loan of ours a year ago,'' said Bosworth. ``They had every right to do so, and we paid it off. But we still get calls all the time asking if we're closed. I'm here to say we're doing just fine.''

The Lakeside Restaurant on North Northlake Way, north of Lake Union, changed its format dramatically last November. The restaurant is open to the public for lunch but is limited to scheduled banquets for dinner.

Kevin Johnson, catering manager for the restaurant, said the change had to be made because all the new restaurants on the south end of Lake Union have siphoned off too much business.

``Last summer was the worst,'' said Johnson. ``We had to do something to adapt to the changing conditions. We're doing quite well with the banquet business.''