12/22/2024
None of us blame our customers for the fall of The Kon-Tiki. We blame a buildup of factors (within and outside our control) that kept us from selling enough Mai Tais and Cheeseburgers to keep 12 good paying jobs in Oakland.
I was disappointed to see last night's inflammatory post, but that's the stage of grief many of us are in. (Eat it up, Internet Trolls.)
The truth is, I screwed up. I should have closed Palmetto sooner and I should have waited to expand with Little Hill Lounge. The Kon-Tiki was a proven concept, with few moving parts and a loyal fan base. Meanwhile, Little Hill Lounge was a major construction project and Palmetto was a sn*******ng boondoggle.
I was blinded by post-pandemic optimism and revelry, and I didn't see the headwinds that were already starting to pick up.
The second most significant reason we failed is that I chose an inept governing partner in the city of Oakland. The town has allowed it's image to deteriorate to comical lows on the national scale. Our leaders let the criminals and the unhoused to roam freely for 5 years, and it drove away residents, small businesses, regional corporations, and national sports teams. The tax base is in shambles, City officials and the police are in open war with each other. The 5,000 newly completed apartments within a quarter mile of us haven't filled up, and our new neighbors largely don't risk going out.
Until the city gets its act together, independent restaurants in downtown Oakland need to do more than click the open sign and offer a half decent meal. They have to relentlessly pursue their customers and provide something that overcomes the fear of going out, as well as the on-demand amenities of staying in.
These are the new barriers third spaces are facing.
If I hadn't been so cavalier and stretched myself so thin, I might have figured it out.
I am deeply sorry to the staff.
Please come see us at Little Hill Lounge.
It's really not that far.
-Matt
