Business Journal: Sacramento Restaurant Closures; Movement Brewing Plans Rancho Cordova Site; Elk Grove Closer To First Hospital

Year Starts With Restaurant Closures

It may seem like we've hit a bubble when it comes to restaurants in Sacramento. Several eateries have closed in the past few weeks, including Hot Italian, Jim-Denny's, and Mother restaurant.

But the Sacramento Business Journal's Sonya Sorich says it's normal to see closings at the start of a new year, which could make sense tax-wise.

"And some restaurant brokers told me that if an eatery is struggling or thinking about closing, its operators will sometimes stay open through December, which is typically a busy time of year, with holiday parties," says Sorich. "January, on the other hand, is generally a slow month."

On the flip side, new restaurants are still opening. A new cantina and Brazilian steakhouse opened in the downtown restaurant space that most recently operated as The Grid.

And a new happy hour spot is coming to the K Street site that previously operated as Downtown and Vine. Folsom's Palladio at Broadstone will also see the arrival of a brunch eatery — Friends With Benedicts — as well as Iron Horse Tavern restaurant.

Movement Brewing Plans Rancho Cordova Site

Despite the spate of Sacramento area restaurant closures, it looks like beer is still in demand. Sorich says locally-owned Movement Brewing Company plans to open a site in Rancho Cordova this spring.

"This is a new family-operated brewery that will fill a space where Ol' Republic Brewery most recently brewed beer in Rancho Cordova," says Sorich. "In addition to affordability, operators of Movement Brewing were drawn to the growing beer community in Rancho Cordova."

The city has its own Barrel District, which includes breweries, distilleries and a meadery. At least one other brewery, LogOff Brewing, is in the works in Rancho Cordova. Movement Brewing's owners aren't worried about a saturation point for local breweries, saying there will always be a place for operators that produce high-quality beer.

Elk Grove Closer To Getting First Hospital

Multiple organizations are vying to build Elk Grove's first hospital. Sorich says Dignity Health has re-ignited its plans to build a hospital on a 28-acre property off Elk Grove Boulevard at Wymark Drive.

"The Elk Grove site would eventually replace Methodist Hospital in South Sacramento, which is not expected to meet state seismic safety regulations by 2030," says Sorich.

Meanwhile, California Northstate University is moving forward with plans for a hospital down the road, near Elk Grove Boulevard and Interstate 5. Elk Grove Mayor Steve Ly says the city is large enough to support two hospitals, and this could be another step toward bringing higher-wage jobs to Elk Grove.