Little Italy restaurants face uncertain future as at least eight go up for sale

OTTAWA · Several restaurants in Ottawa's Little Italy neighbourhood are for sale or have closed recently, including long-standing spots like Di Rienzo's and The Prescott. At least eight food service businesses have been affected over the past few months, according to listings and closures. Real estate broker Ryan Earl said the market for restaurant ownership is the worst he has seen in more than ten years. He pointed to high inflation and rising grocery costs as major pressures on the industry. Earl is currently involved in the sale of The Prescott and Ek Bar in the area.

"People are losing their jobs, disposable income is way down. Grocery costs are through the roof," Earl said. "It's very, very challenging in an industry where it's already challenging enough, where you're trying to make 10 cents on the dollar." Trever Proulx, general manager of The Prescott sports bar, said consumer habits are also changing. He noted that many students today are drinking less than previous generations. "They're looking for something to do. They don't want to just sit in a bar and drink," Proulx said.

The Prescott is on the market for the second time in ten years. It was previously sold to the MRG Group, a national restaurant and bar operator. Proulx suggested the sale might be part of the group's broader shift toward live events instead of traditional venues. Food blogger Ameya Charnalia, who runs Eat the Strip, said the loss of several well-known establishments is concerning. "There are quite a few big names that we've lost recently," Charnalia said. "The margins are razor-thin and even if you have a built-in loyal customer base … that's not enough really to keep the doors open."

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Some restaurants are adapting by focusing on catering and take-out orders to survive. Others, like Torta Boyz, emphasize community connection and offering unique menu items. "[It's about] connecting with the community, giving them something a little bit different, giving them something that maybe the Ottawa food scene hasn't seen," said co-owner Luis Guerra. The Mexican restaurant operated from a food stand on Preston Street before moving to Chinatown in 2022 and returning to Little Italy this year. The Prescott has added theme nights, games and live music to attract customers.

Proulx believes the neighbourhood will remain a popular destination, especially with a new hospital and the LeBreton Flats development planned nearby. He hopes any new owner for The Prescott will be local and preserve its 90-year legacy. "[There's] something special about this place that it needs to be kept this way and not turned into something else," Proulx said. Earl reported that the owners of The Prescott have received a conditional offer, though he could not share details. The Preston Street Business Improvement Area said it continues to support local businesses through maintenance and events but declined to comment on the recent sales.

With files from CBC News