Lakewood Restaurants Defy Recession

In winter 2009, when the area's unemployment rate had been at least 11 percent in eight of the last 10 months, and the number of U.S. businesses filing for bankruptcy had nearly doubled since 2007, Dan Deagan and Dan Stroup were doing the unlikely: planning to open a restaurant.

“We were never like ‘Oh boy, what are we doing opening a restaurant,’” Stroup said.

The economic recovery has been slowing since April, when the area's unemployment rate was 9.5 percent, the lowest since December 2008, according to the Ohio Department of Jobs and Family Services. In June, the most recent data available, it was back up to 10.7 percent.

But some of Lakewood’s most recognized independent restaurants have been flourishing, despite the erratic economy.

Stroup said business has been “great” since opened last September, and owner Matt Fish is opening a third spot in Independence next month. 

“This will probably be the busiest summer we’ve had yet,” he said. “If things keep going well, we hope to have five locations by the end of next year or the year after.”

, which is no stranger to a lackluster economy, is reporting strong profits too.

“In the last five or six years, our business has doubled,” said business partner Lee Zannoni.

When Angelo’s opened its doors in October 1981, the U.S. was slipping into a recession that would see Cleveland unemployment rates reach a dismal 18.8 percent in January 1983.

He wasn’t there for that, but Zannoni is well acquainted with this recession, having joined founder and owner Thomas Kess in 2004.

Zannoni said as other businesses have focused on reducing costs and “cutting corners,” Angelo’s has increased its expenditures, allowing them to remain on top.

“Today, that’s pretty hard to find,” Zannoni said. “But if you’re not one step ahead, you won’t be on top. 

Getting that one-step ahead is often easier for independent restaurants rather than chains that may receive orders from management in another state, Stroup said.

“With an independent restaurant, you’re more able to make changes on the fly, and respond quickly to the feedback from those changes,” Stroup said.

But it’s not enough to be able, Fish said. The owners also have to be willing.

“Some of the smaller mom-and-pop places are sometimes the first ones to go because they get stuck in their niche and refuse to change with the times,” he said.

One change is incorporating social media, which Fish and Zannoni both said have been pivotal for their success.

“I think a lot of people are relying more on social media instead of their phone,” Zannoni said. “It simplifies people’s lives, and they love that.”

Social media can also allow customers to feel like they have a relationship with the restaurant. Coupled with independent restaurant owners’ ability to be at the restaurant - Deagan’s website claims the owners “are on-premise every day” – really gives diners a sense of community.

“People get to know the owner and the owner gets to know them,” Zannoni said.