NASHVILLE, Tenn. (WTVF) — Otaku Ramen's Sarah Gavigan said the industry is experiencing a restaurant recession in Nashville.
She noticed Music City needed a ramen shop, so she opened one in the gulch in 2015.
"Which is very different than 'I want to stick my hand in the honey pot,'" Gavigan said.
They’ve since expanded to West and East Nashville, but now she has concerns for the future.
“We’re at a turning point in Nashville, and I believe that Nashville is now a victim of its own success,” Gavigan said.
With big money moving in, she said local restaurant owners from old Nashville are struggling with market conditions and rising rent.
"I think that many people will say this happens and that buck-up competitive market, that’s the way it works—but as somebody that lived in Los Angeles for 20 years, and I saw it happen there, I can see that it’s about to happen here," Gavigan said, “The recession is here, whether everybody wants to say that Nashville is recession proof or not— it isn’t.”
Customer Anthony Dillard wonders how it will impact consumers.
"A lot of the good restaurants are affordable like the mom-and-pop restaurants, they’re reasonable with the prices," Dillard said.
But with rising rent and the economy, that could change.
“If the market doesn’t correct, and the interest doesn’t go down, and the rates the way they are—yea it could happen,” Dillard said.
Sarah said their roots here are thick, but she worries about other entrepreneurs.
“I think that overall it’s just really sad to see that the start-up mentality will be gone, the only people who will be able to afford to open restaurants here are private equity,” Gavigan said. "If you have two or three restaurants that are beloved to you, support them with all your heart."
