Lunch in the Loop: How restaurants are finding their footing downtown as office occupancy still lags

Nicole Nassif didn’t care her restaurant would have only six seats. She didn’t mind that offices in the Loop remain, like the rest of the country, far below pre-pandemic occupancy.

She felt sure Imee’s Kitchen (171 N. Wells St., 312-285-2895, imeeskitchen.com) could find its footing as a petite, lunch-focused Mediterranean restaurant that would appeal to office workers looking for a quick bite during their lunch break.

In her first six months of business, that plan seems to be working.

“We’re really focused on the lunch business, because we’re right in the Loop between City Hall and Merchandise Mart,” Nassif said.

It’s not an uncommon strategy for the Loop and River North, where fast-casual lunches and takeout-focused spots flourished before COVID-19, whether in the rotating lineup at the likes of Revival Food Hall, or as longtime favorites such as Fontano’s.

But while Americans have largely returned to pre-pandemic levels of travel, dining out and in-person entertainment, they’re not heading to the office in a similar fashion.

[ Office buildings that offer internal amenities, like restaurants, could be key to luring workers back downtown ]

That means restaurants have to be nimble, or come with built-in fan bases, to succeed in office-centric parts of downtown. Raising Cane’s can make a mark on Michigan Avenue as loyal customers flock to the new flagship, and smaller chains can rely on familiarity as a key selling point.

But there’s still a long way to go.

Since the beginning of the pandemic, 338 downtown restaurants and bars have closed, the majority of which have been fast-casual and quick-service restaurants such as Pret a Manger, Starbucks and Subway, according to Datassential, an analytics firm for the food and beverage industries.

Pedestrian traffic remains lower during weekdays, but inches closer to pre-pandemic levels, averaging 85% of 2019 foot traffic in the final months of 2022, according to a report from the Chicago Loop Alliance. Office occupancy in the Loop grew to 48%, from 31% in 2021 — in line with national trends that hit 50% last month across 10 major cities.

Michael Edwards, president and CEO of the alliance, said that despite the setbacks posed by the ongoing pandemic, he has witnessed “great new additions” to the downtown scene.

Imee’s, for one, serves wraps, salads and good conversation in a restaurant emulating the kitchens Nassif and her mother grew up in. Each dish comes from her mother’s and grandmothers’ recipes.

“I think everyone thinks of Middle Eastern food as a falafel or shawarma, but we don’t have any of those things on the menu — that’s not what I ate growing up,” Nassif said. “The best part is teaching people about the culture and talking about the food.”

Combos ($14-$17) come with tabbouleh or Lebanese salad, along with a choice of proteins such as seven-spice chicken and mujadara, with lentils and rice covered with a shower of crispy onions. Sides range from hummus ($5) to ground beef hushwee studded with pine nuts ($8) and roasted cauliflower ($5).

“There’s so many great things about every culture, and I would just like to share those, because this is not a culture people necessarily highlight the best of,” Nassif said.

When workers are grabbing lunch downtown, quick takeout and low prices are key attractions. In January, sales were actually 34% higher than they were in 2019 at the five Loop locations of Just Salad, a fast-casual concept that, despite its name, also serves bowls, wraps and soup.

“Most restaurants catering to the office crowd have either gone out of business or are priced so high that the cost has become inaccessible to the customer,” said Nick Kenner, Just Salad founder and CEO. “As a result of our response to the pandemic, and commitment to providing healthy, sustainable and high-quality food, we’ve been able to build an extremely loyal customer base in Chicago.”

His restaurants remained open throughout the pandemic, prioritizing takeout and delivery. An entree-size salad or lunch combo clocks in around $11 to $13 — relatively cheap for the Loop. A mobile app and rewards program were also “crucial drivers in our Chicago recovery,” Kenner said.

As a result, lunch hours on Tuesdays through Thursdays are bustling with to-go orders. Mondays are starting to pick up, as well, Kenner said.

“If you operate in the Loop and have a real following as a brand, or you are a small restaurant operator with something truly exceptional, you can make it all work,” he added.

Raising Cane’s, the fast-food chain with famously craveable fried chicken, opened its flagship restaurant on Michigan Avenue in January — joining 700 locations globally and 25 in Chicagoland.

Co-CEO AJ Kumaran said the addition brought 100 jobs to downtown and serves between 10,000 and 12,000 customers every week — most of whom are stopping in for their lunch break.

Afternoons had the highest quarterly average for weekday pedestrian traffic from October through December, peaking during 2 to 5 p.m., according to the Chicago Loop Alliance report.

“I think that our office occupancy number has been slow, but I see that as continuing to improve, probably slowly,” Edwards said. “But in the meantime, the residents and students are driving the restaurant economy, especially in the evening.”

This can be good news for soon-to-open restaurants like Sushi Bar Chicago, which will be open Tuesday through Saturday from 5 to 11 p.m. come spring.

Sushi Bar, a small chain restaurant that launched in 2020, will open its third location this May in River North. The two other locations are in Austin, Texas; and Miami.

Executive chef Ambrely Ouimette is planning to give guests an intimate experience, permitting 30 guests total per night to enjoy a 17-course meal.

“The experience of Sushi Bar is intimate, it’s educational, and it’s something different, because we make a connection with each guest,” Ouimette said. “It’s really cool to be able to stand 3 feet away from guests and take them through what we’re doing in terms of fermentation and breaking down proteins.”

Ouimette said she looks forward to bringing her modern omakase experience to the city.

“I’ve been working in this industry for as long as I can remember, and it’s always been a dream of mine to work in the market of Chicago,” Ouimette said. “Going into a new market and standing in the market with all the great chefs who are already in Chicago is exciting for me.”

food@chicagotribune.com