On many nights, Novecento is filled with loyal customers. But even for the popular Argentine restaurant times are tough on Key Biscayne.
Novecento had to move earlier this year from its long-term location at the Key Biscayne Shopping Center to a slightly smaller space at The Square.
Why? Rents are simply too high for many shops and restaurants on the island.
鈥淚t鈥檚 really tough to be in business,鈥� said Jam Alonso, a manager at Novecento.
鈥淲e have a big competition 鈥� not just us, but all the restaurants.鈥�
There has been a 10% increase in commercial rent on the island in the past three years, said real estate broker Thania Vernon of Fortune Fortune Christie鈥檚 International.
People wanting to open a business here should do their due diligence, Vernon warned.
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The cost of doing business on Key Biscayne is only getting higher.
Property taxes on commercial properties are going up, and tougher code enforcement is planned. The recently passed 2025 budget includes a tax cut for many homeowners, but commercial properties are getting stuck with a 5.5% tax increase.
鈥淩ents have gone up. I just did a lease in the Square, and it was higher rent than two years previous,鈥� Vernon said. 鈥淭he Square is still manageable for businesses 鈥� for small businesses.鈥�
Higher commercial rents are not unique to Key Biscayne. Miami office space hit a record high this summer, with properties in Brickell getting $200 per square foot, according to the .
Village Manager Steve Williamson said he supports local businesses, but the topic of assisting them has rarely been a part of Council discussions. Williamson said he didn鈥檛 think the government should help local restaurants and shops with increasing rent costs, saying these are private businesses.
Other Florida communities have embraced helping businesses. Boynton Beach in Palm Beach County, for example, created a to help businesses deal with escalating rent costs. Nearby Delray Beach just had a tax rollback particularly because of how restaurants and shops have been hit with high property taxes.
鈥淭he people who actually made Delray Beach, who gave it the buzz and did all the stuff that everybody wants to come to, well we鈥檙e crippling them,鈥�
Williamson said the Village stands ready to react, however, calling local merchants 鈥渢he fabric of our community.鈥�
鈥淲e work closely with the Chamber of Commerce and local business leaders to help set the conditions for them and all their customers,鈥� he said.
Tatyana Chiocchetti, executive director of the Key Biscayne Chamber of Commerce, suggested restaurants pool their resources in negotiating with suppliers to help cut overhead costs.
鈥淲e encourage businesses to join forces in purchasing, especially if they are in similar lines of business. This way the business would most likely qualify for greater discounts on joint purchases,鈥� Chiocchetti said.
Restaurateur Antonio Braschi, who owns Kazumi Modern Japanese and Costa Med Bistro, said the Chamber should take the lead on its idea of pooling purchasing by initiating a deal with the local Winn-Dixie grocery store.
In return, Braschi said, the Chamber would require all restaurants to buy restaurant food at Winn-Dixie, which would then give discounts to businesses.
鈥淭he logistics of managing that is outside the purview of the Chamber,鈥� Chiocchetti said. 鈥淭he Chamber will not initiate a program which compels any business to only shop at a particular store.鈥�
Key Biscayne is unique in its restaurants and shopping, but it鈥檚 a small pond of local customers and here today and gone tomorrow tourists. The six miles across the Rickenbacker Causeway, a toll road, works as an impenetrable barrier to lure foodies and high-end shoppers.
So entrepreneurs have to develop businesses that specifically serve the island, like pilates and yoga studios, designer or architectural businesses catering to ongoing construction and child-friendly businesses, Vernon said.
There are at least six pilates studios on the island, according to a Google Maps check. While that might seem like a surplus, Vernon said pilates has a broad target market that includes people of all ages, so there is higher demand.
鈥淲ork with someone who knows the market. And know who you鈥檙e targeting to make sure that the business will sustain,鈥� she said. 鈥淚t needs to be a business that鈥檚 conducive to the lifestyle of the island.鈥�
With no appetite to help businesses from the Village government and a Chamber of Commerce set on letting the businesses fend for themselves, some business owners say they may 鈥渞e-evaluate鈥� staying on the island.
Brianna Brown, president of Fine Line Furniture And Accessories, said rent on the island is 20% more than Coral Gables location. Brown inked a five-year lease at the Harbor Plaza Shopping Center.
But whether Brown continues business here depends on profits, she said.
鈥淚f I get to the end of my five years, I will definitely re-evaluate 鈥� see if the sales are worth it,鈥� she said. 鈥淎 heavy rent, especially with the increases 鈥� you have to weigh it out.鈥�
Novecento is not alone in uprooting.
Pita Pockets at the 180 Crandon Blvd. shopping center is planning on revitalizing its business model to stay afloat. The owner declined to give details, as he and his partners work out the new business model.
While still in a slow season, Alonso said sales at Novecento are OK and hopes that the clientele from the former plaza will follow them to the new location. The restaurant also has locations in Brickell, Doral and Aventura.
鈥淲hen you鈥檙e looking for locations, it鈥檚 hard because you are looking, and there are many places,鈥� Alonso said. 鈥淭his was available, and I think it鈥檚 a good place.鈥�
