When they started Sidecar Modern Tavern in 2019, partners Adam Chick and Joshua Allen were optimistic about the future of their downtown Los Gatos restaurant. Then the pandemic drenched the hospitality business in chaos. Some were more impacted than others, and the long-term effects of the COVID-19 shutdown led to Sidecar going out of business as of Sunday, March 17.
“We were in business five years, and the scars of COVID remained,” says Chick. “We hoped our debt would be forgiven by the landlord.”
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Restaurateurs who had landlords who worked with them on rent, and also received governmental assistance through Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) had a better chance of making it out of the maelstrom. But if one of those legs of the stool did not materialize, their chances of going under increased.
“We were in second group for the ERC, but we never got it,” Chick says. “We hoped to get our debt taken care of, but it was not to be.”
The closure, Chick says, wasn’t due to a lack of business. “We are packed, but not enough to pay back past debt. It’s yet another great restaurant for Los Gatos to lose.”
He notes that this is the fifth restaurant in downtown Los Gatos to go out of business in recent months, including Eleven College Ave (now Dar), North (about to become Ambrosia), The Palms (about to become Gardenia), Montebello Marke (now Grocer + Goddess) and Due Dieci at the Toll House.
Like all restaurants, Sidecar had been struggling to keep pace with inflation. “The cost of goods is really crazy,” Chick says. “Labor is $20 and hour, and if you charge $16 for a cheeseburger, you are losing money. Even if you charge $24, there’s barely an upside.”
He says that many of the smaller casual restaurants in town are really feeling the pinch.
“Many are resorting to crappy ingredients,” Chick adds. “It’s all pizza, pasta and bread. We are one of the last healthy places: our vegetables have dirt on them, and our fish comes from the dock. The fisherman in Half Moon Bay calls me to share what they’ve caught that day.
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“Dining out has become a luxury,” says Chick. “It is now ‘date night’ again. People just aren’t going out as much on a regular basis as they used to.”
When there is a strong dining holiday, like Valentine’s Day, the weather can make or break a restaurant. Chick says torrential rain on Feb. 14 made outdoor dining impossible. Many restaurants had to call their guests who had reservations and cancel. It was very difficult to get people to reschedule, and the revenue loss was significant.
As for his plans for the future, Chick says, “I need time to reflect and come back with a different business model. I want to buy a building next time. The sucker is the guy who rents. Let’s face it: No landlord wants put the money into improving their property. It’s a vicious cycle.”
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