End of an era: Soul Gastrolounge will soon close in Plaza Midwood

Owners Andy and Lesa Kastanas are facing a grim reality similar to thousands of other Charlotte residents and businesses: The rent is just too high, as CBJ first reported.

What’s happening: The Kastanases, whose businesses Sister (formerly KiKi) and Tattoo are in the same building on Central as Soul, say if they were to stay, their leases would increase by 114%, surging from $20 per square foot to $43, according to a statement released Thursday morning.

• Soul also is struggling with supply-chain issues, staffing shortages and rising food and maintenance costs.
• The Kastanases have invested in all kinds of uplifts for their three restaurants, even tapping into their savings to do so.

Soul’s profit margins are around 3-5%, Andy Kastanas estimates. So even though the restaurant might look busy, the rising cost of just about everything it takes to run a business made it nearly impossible to go on. The rent hike was “the straw that broke the camel’s back,” Kastanas tells Axios.

“Making sales doesn’t mean you’re making profits. The restaurant business is tough,” he says.

Why it matters: Soul is the latest in a long line of family-owned businesses to close shop because of soaring rent. In the last few years, Plaza Midwood, which is in the midst of an enormous redevelopment effort, has lost longstanding establishments such as Boris + Natasha, Elizabeth Billiards, Book Buyers and Sammie’s Deli, among others.

• Many, including the Kastanases, worry that the neighborhood is losing its personality with the closure of local businesses and the influx of new development.
• Meanwhile, national brands such as Emmy Squared Pizza (and soon Dave’s Hot Chicken) are opening nearby.
• The Soul property’s landlord did not respond to a request for comment.

[Read more: With an influx of new development, does Plaza Midwood risk losing its identity?]

Zoom out: Soul opened in 2009 and quickly became a neighborhood favorite. Known for its tapas-style menu (including Asian glazed pork belly tacos topped with watermelon), Soul has gotten attention from publications such as

But years before they opened Soul, the Kastanases were part of a group of local entrepreneurs who helped make Uptown a destination. They operated Cosmo’s Cafe, Alley Cat, The Forum, and Mythos — all popular spots that drew crowds. Soon bigger, flashier competitors like the EpiCentre cropped up nearby, pulling customers away.

• The Kastanases closed their bars and decided to do business instead in Plaza Midwood, then a quieter but friendly place filled with artists and local entrepreneurs.
• Now, Andy Kastanas is worried the same thing that happened in Uptown is happening in Plaza Midwood. “The landscape has changed. The neighborhood has gotten diluted,” Kastanas says.

“When you create something cool, people will come in and try to exploit it. I knew this would happen. It was only a matter of time,” he adds.

What’s next: The Kastanases aim to relocate and reopen Soul and Tattoo by spring 2023. Andy says they’re in “heavy negotiations” on a location in an up-and-coming area.

My thought bubble: I’ve never been to Soul and not experienced a wait. Date nights, girls’ nights, solo dinners — it’s been an intimate, warm spot with sophisticated food for just about any occasion.

If even super-popular local spots can’t hang on in a fast-changing neighborhood, who can?