Tallinn restaurant spaces attract new operators despite closures

Restaurant spaces vacated by closures in Tallinn are not staying empty for long, with property agents telling ERR that demand from prospective operators remains strong.

Several restaurants have closed in the past year, including Tai Boh, Boheem, Vatikan, Manna La Rosa, Ülo and La Tabla. Siili Sahver, a lunch restaurant that survived the Covid crisis, has also shut down.

Aira Veelmaa, a commercial property agent at Uus Maa, said restaurant premises are among the most sought-after commercial spaces. She said interest has also grown among entrepreneurs from the Middle East and other parts of Asia, some of whom are keen to start businesses in Estonia but are less familiar with the local market.

Popular restaurant premises often attract several prospective tenants, Veelmaa said. But some parts of Tallinn, including Narva maantee, see frequent turnover, and restaurants there can struggle to stay open despite high foot traffic. Food businesses in office buildings face particular difficulties as more people work from home. Property owners also need to ensure there are not too many nearby restaurants competing for customers.

Veelmaa said the trend was slightly positive, with more entrepreneurs looking to open new venues. Tanel Tarum of the 1Partner real estate agency also said the situation was not as bad as it might appear in the media. In Tallinn, the number of new openings balances the number of closures, he said.

Tarum said people’s travel patterns have changed over time, bringing more foot traffic to the Telliskivi and Volta districts than a few years ago. He added that some businesses close because they did not do enough preparation before opening.