A new player enters Chicago's restaurants scene

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1:01Comments crack down, Thins, the data center pipeline, and our dining reporter, Ali Marathi, stops by to talk about the newest restaurants coming to town, plus whether mergers can save the craft brewing industry. And it's different, you know, than maybe like 10 years ago when a lot of like the big beer companies were buying up craft beer companies because they wanted that in their portfolio. What we're seeing now is some of these craft breweries actually merging with each other or acquiring each other. I'm Gene Sparrow, and this is Crane's Daily Gist for Wednesday, September 16th. Looking to expand your business, ready to turn that 10,000 square foot warehouse into 100,000? At Old National, our commercial bankers think as big about your business as you do. We're by your side with smart ideas around cash flow, working capital, collections, and even retirement plan services that fit your needs.

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3:03Because when AI delivers results, it's amazing. We configure, optimize, and deliver the tech that runs business. CDW make amazing happen. So now it is time for us to talk about one of my favorite things. Eating. I'm sorry, dining. And restaurant openings and news from the restaurant world. Ali Marathi joins us. Hello, and how you doing? Hey, Jean, I'm great. How are you? I'm wonderful. So happy to meet you. I'm glad to see you. I'm glad to see you. How are you doing? Hey, Jean, I'm great. How are you? I'm wonderful. So happy to meet you. And so happy to talk about one of my favorite things in Chicago. It's what I tell people. I travel a lot in all of my other work. So I always tell people you have to come for the food. It's so true. I mean, the first story we want to talk about here, you know, the restaurant group really made that point to me. The Chicagoans and Chicago in general, they're serious about dining. And you're right everywhere. I've been. I'm sort of like,

4:04kind of miss the Chicago restaurants. Indeed. I'm always comparing the skyline and the restaurants. So this Mahomes Kelsey, uh, steakhouse concept is coming to Chicago. Talk to me about what that is because I was confused as to the name of it. Yeah. It's a little confusing. So the restaurant group is called Noble 33. And they have like seven rate restaurants around the country right now. And I think they have a couple internationally too. And one of them is the most recent one actually is the steakhouse and Kansas city that they did with Kelsey and Mahomes. They're opening two in Chicago. It'll be their first foray in the Chicago market. And both of them are new concepts. So they've not done either of these concepts that are going to be in Chicago anywhere else. And part of that, as I mentioned, is because they were like, you know, we're entering the market humbly. And we knew we couldn't just bring like some concept. We developed somewhere else in the Chicago. It had to be something special.

5:04I love that they said they were coming here humbly because we appreciate respect. And the fact that it was like the first quote in the story cracked me up. I was like, OK, you might know Chicago a little bit. Exactly. Because I was concerned that they were going to bring into a Bears town. A Mahomes Kelsey name. And I was like, I don't know how that's going to fly. Yeah, no, I've talked to kind of other people that thought that too. And perhaps that's my fault for framing the story that way. But no, I mean, they were, I mean, that's savvy, right? You know, and the first concept is River North. And it's going to be an American Brossery. So they said sort of like comfort food, like nostalgic food, but done in a really elevated way. And then the other ones in Fulton Market and it's upscale Mexican. And they have a few upscale Mexican restaurants, but not this particular one. It's called Kobamaya. And they don't know when that's going to open yet. But the River North one they're hoping for early next year. But the River North one in particular is something that, you know, they brought up specifically to me because it was like.

6:09For Chicagoans, you don't have to like teach them what a good burger is. They know. So there's no like cutting corners. We really have to be serious and do this right. And, you know, in reporting the story, I talked to another restaurant owner who also, you know, owns a restaurant in River North and came into the Chicago market from Mexico, actually. And they entered the Chicago market partnering with a local chef. And that is not exactly what this noble 33 is doing. By the way, the restaurant's called Mr. Noble. So that's why it's a little confusing. Got it. But yeah, you know, I mean, the point was like the city is not very forgiving just because there are so many options. You know, it's not that Chicagoans are like mean or anything, but you just can't get away with mediocre food here. No, you can't. And in fact, we're the opposite of mean. We want people to succeed, I think, because we are looking for all these new options. But Chicago is not for the week. The winter, especially for the restaurant business and all the competition. We'll see how they do. I wish them well.

7:09Yeah. All right. Now, let's talk about one of our hometown favorites. It's the snow fall off. A vek is expanding and actually really putting their thumb print down in Highwood, which is an amazing restaurant district. Yes. So they're taking a vek out there, which they had announced last year I believe. But what they're doing is doubling down on it. You know, a vek has operate in 25 years in the West Loop. They opened a river North location in 2021. This Highwood will be the third outpost. But initially it was just gonna be the restaurant. And now they've added a new building that is gonna be a private event space. And it's got kind of like outside seating and more parking as well, which is very important in the suburbs. You know, it's something that I think the folks of Highwood are gonna be excited about. And the entire North Shore. Yeah, I love that whole little area up there and I love this addition to it. Now, let's talk about what's going on in Logan Square with Christian Hunter. So he's got a new space that's coming out. When is that gonna open and what's the name? Yeah, it's called Hooligan.

8:11It's gonna be on California Avenue. It's 50 seat restaurants. And that is set to open this fall. So coming up falls right around the corner. But this one's exciting. You know, this chef is really interesting. He grew up in Kentucky. He has a Michelin star, right? He worked at a tele-A before it closed when they got their Michelin star. And he's fine dining trained. But he wants us to be like a neighborhood restaurant, super approachable, whether you're popping in and just getting like a drink, everything's all the carts. It's not gonna be tasting menu. And I think, you know, it's a smart move. I've written a lot about how, as we've seen inflation rise and costs to eating out, rising. A lot of the fine dining places in Chicago, whether the Michelin star or not, the tasting menu spots are rolling out options that are perhaps more affordable. Maybe it's like a truncated tasting menu. Maybe it's a happy hour. Maybe it's alacar options. They think that chef Hunter is keying in on that. Yeah, I want to talk a little bit about that since you went into depth into it

9:12in this particular story. Because it's something like, I realized that, like I love tasting menus because you don't have to think, right? You just like, it's somebody else curating this experience for you. But it's not just about the price to me. It's also about the time. Like you have to commit to hours. And yes, I have been known to park up at a restaurant and stay for hours with friends and try to make it work well for everybody involved. But we don't always have time for that. Like we can't always carve out that kind of time. So I like hearing that we're bringing that same level, though, of dining into something different. But my question is, do you think that means that the tasting menus go away? I don't think so. I think there will always be a taste for placing menus. Placed for tasting menus. And I think especially in Chicago, there is a big market for them. Right? There's a lot of people that love them,

10:13that are going to go there. I think we see a lot of the business travelers that come to Chicago dining at tasting menu spots as well. But I think there's a couple things going on here. There's kind of this affordability issue. Profit margins for restaurants have gone down over the past few years. And people are dining out less. As a inflation continues to rise, right? But people want to treat themselves when they do go out and tasting menus are often a part of that. The other thing that's going on though, and this is, I hadn't really thought about this until now, actually. But this idea that you might just pop in and grab a drink before you go out to eat in another wonderful Logan Square restaurant, that's something that we all used to do very frequently, pre-pandemic, right? Drink before dinner, drink after dinner, maybe you're going to three different places in one night. That really got tampered down in the years following the pandemic. And people wanted to go and have an experience and just stay in one spot. And dinner was the event for the evening. So, I think that it's interesting, the chef hunter is sort of thinking that way too,

11:14like, oh, someone might just want to pop in, get an app and a drink and move on. Because I think we're seeing that come back a little bit too. I love that because that was a tradition. I really loved, especially in a neighborhood like Logan, where you're seeking out very specific dining experiences because there's so many good spots. I used to live in Logan. So being able to walk, you know, a couple of blocks walking off, then go meet a different group of friends and then maybe have a nightcap someplace. Like, that used to be a really cool way to hang out. And I don't think we think about how much the pandemic has changed our habits and the way that we socialize in addition to everything else. Like, we forget the things that we really loved because they weren't available to us, right? Even when we came back, the way that things have come back have not necessarily led to that. So, I love that that is welcome now. Yeah, I think it's really, you know, I know we're over six years out from when the pandemic first struck.

12:15And, you know, I think sometimes I'll be doing an interview and sound crazy because I often ask restaurant owners about the pandemic aftermath. And, you know, I think in the world of restaurants, it still feels fresh because it did change so much. And some things have gone back and some things never will, you know? So I always find it really interesting just kind of like the historical arc and how we're seeing that long tail basically continue to impact our habits and how restaurants operate. Yes, absolutely and everything else. Now, another thing I'd like to talk about are the craft breweries and all the mergers. These are survival mode situations, right? Right, I mean, speaking of pandemic aftermath, craft breweries in Chicago, they had kind of a rough time in the years following the pandemic. People just didn't return to tap rooms the same way that they were before COVID. And in 2022, 2023, Illinois lost 10% of its craft breweries for that reason, right? I mean, a lot of them had survived those years of the pandemic,

13:18but maybe they had taken out big loans to do that and then they couldn't pay them back. Or they needed to expand to be profitable and they couldn't afford it. There were a bunch of different scenarios unfolded. So what we're seeing now is that a lot of craft breweries have sort of evolved to survive. They're different than they were before. It's not just walk in and drink beer on draft. There's food, there's cocktails, NA, non-accompanied options available. There's events, right? trivia, live music, whatever it may be to get people through the door. So we've seen that going on for the past couple of years. And now what we're seeing a lot of is merging within the craft beer space. And it's different, then maybe like 10 years ago when a lot of the big beer companies were buying up craft beer companies because they wanted that in their portfolio. What we're seeing now is some of these craft breweries actually merging with each other or acquiring each other. And the reason they're doing that, it's not necessarily like, oh, I'm getting ready to go out of business, so I have to merge.

14:19It's sort of like them developing more business strategy, and the industry is maturing. I think that's really what it comes down to here. And this is just kind of them saying, hey, we need somewhere to make more volume. Maybe this brewery over here can offer that. And then it'll save them both money, whether it's economies of scale, buying power, or just having your capacity built out and your brewing capabilities, that saves money. There's a lot of different ways that kind of, it can help with those costs that are rising. And one person told me that the beverage industry is pennies. And if you can save pennies, it can be the difference between profitability or not. And that is astounding to me. A couple of things. I think this is actually a smart strategy because it remains independent from the big guys. And I think that's important to people who seek out micro-brews or certain parts of that. And then the second part of it that I wonder

15:22is how much the trend toward not drinking is affecting them. Because I have friends in the beverage industry who have said that they are concerned about the future of what they've become accustomed to and how they adapt going forward with the way the models are set up according to the way we used to drink. Yeah, I think you're absolutely right about that. Every craft brewery owner I talk to talks about that. And even when I was reporting this story, it was interesting because we're sort of out of this like the doom and gloom era that we were in a couple of years ago. But I had a couple of people tell me more people are coming through the door. But then I would ask around and a lot of brewery owners ended up saying just because more people are coming through the door doesn't mean they're buying more. And so maybe instead of buying three beers, they're only getting two. Maybe instead of two, they're only getting one. And I think then that's why they really feel the need to have these non-acoholic beers on draft as well.

16:26It's interesting because this is not just happening in tap rooms when we look at the data from stores. It's a similar phenomenon. There's just not as much beer being sold. And I think the same is true. Or we'll see that trickle down, trickle out. I don't know what the effect would be in this case, but with other forms of alcohol, whether it be wine or spirits. So what else are you working on? Because it's going to be a busy fall on the restaurant seen in Chicago. Are you going to be full for the next three months? Is that weird? Yeah. I mean, it already is. These openings are just coming fast and furious. And it's the announcements of the opening. So it's kind of staggered. But I've been writing almost like one story a day about restaurant opening. So I think I really need to get with an expert and figure out why that is. My theory was just heading into fourth quarter. It's often the most lucrative time for restaurants. So if you're going to open this year now, it's the time to do it. So you can get all that holiday party revenue, et cetera. Plus nobody wants to open in the dead of winter in Chicago.

17:28So that, I'm going to be, I've got a few more of those on my to-do list. So keep an eye out for those. And then I am working on a fun story about farmers fridge with salad and the jar people, right? Yes, exactly. And interesting you should say that, because the premise of the story is that they really transformed as a company. They've really kind of reached maturity. They're like 13 years old now. Salads are only 20% of their sales. And I think we think of them as like being in an airport or like hospital. And the pedway is where I used to see one all the time, pre-pandemic, right? And they do still do that. But increasingly, and even more so, they're going into places like Amazon warehouses to help the people that work there find something to eat lunch, because you can't just leave the Amazon warehouse in the middle of nowhere and go get a burger. So I find that very fascinating as well. Oh, right. I'm looking forward to our next conversation, Alia. It was great to meet you. And we'll have to go out and get something to eat sometimes soon. Yes, I'm hungry.

18:28Just talking about it. Indeed, indeed. Thank you, my dear. Yes, thank you. Coming up, the US Supreme Court rejects the White House's male ballot curbs for the midterms. We'll cover that and more after this. Cranes daily just listeners know their Chicago biz. And here's a great way to prove it. Take the Cranes Weekly News quiz at ChicagoBusiness.com slash quiz. We know you keep up with the stories we feed you every day. Now you can test your knowledge with our weekly quiz. Visit ChicagoBusiness.com slash quiz. And of course, Cranes Daily Gist is a great study guide. Follow us wherever you get your podcasts. If you like YouTube, you'll love YouTube Premium. It's destroying athlete, creator, and YouTube Maxor. YouTube Premium enhances how I use YouTube with awesome features like offline downloads, so I could download my favorite training videos before I hit the gym. So no Wi-Fi doesn't turn leg day into loading day.

19:29Plus, I get ad free videos, background play, and so much more. YouTube Premium is like YouTube got some extra gains. Try YouTube Premium for two months free at youtube.com slash premium. Try eligibility varies, terms apply, cancel anytime. You know it's not a great use of time? Getting data ready for AI. That's why IT leaders turn to CDW. We help unify data and govern it, building the foundation for your AI and agents to deliver results. Because when your data is ready, AI stops being an experiment and becomes an advantage. We configure, optimize, and deliver the tech that runs business. CDW make amazing happen. ComEd is clamping down on speculative data center proposals. And the move is already shrinking its massive pipeline. Faced with a surge in artificial intelligence projects

20:30threatening to strain the power grid and drive up consumer electricity bills, ComEd began requiring large load developers to put up serious cash. As Cranes John Plett reports, new projects requesting over 50 megawatts must now provide non-refundable deposits exceeding $1 million, along with a letter of credit backing a 10-year financial commitment. The strategy is working. In a recent review of 11 proposed large-scale projects, only four survived. Overall, six developers put up $1 billion in credit to stay in line. That pulled ComEd's requested large load capacity down from 39 gigawatts late last year to 25 gigawatts today. To put that in perspective, one gigawatt can power roughly 750,000 homes. ComEd's CEO Gil Kenyones says these security agreements protect existing residential customers from footing the bill for speculative infrastructure. However, industry experts warned the policy combined with state regulations

21:33could push tech investments out of Illinois entirely. Sean Reynolds, a data center specialist at Real Estate Farm Jones Langlessau, notes that while the deposit rules successfully weeded out unprepared developers, broader issues like Illinois's strict Biometric Privacy Act are causing major AI companies to look elsewhere. Looking ahead, ComEd wants to tighten rules even further. The utility has asked the Illinois Commerce Commission for permission to interrupt power to new data centers during peak demand hours or require them to supply their own electricity. ComEd hopes to implement those new guidelines next year. Go deeper by reading John Pless' reporting at Chicago Business, www.cranesrachalhersog reports a major downtown Evanston apartment complex is about to change hands in a hundred plus million dollar deal. The transaction is shaping up to be one of the largest deals ever in the Chicago suburbs. Chicago-based developer Draper and Cramer is under contract to purchase

22:36the Albion Evanston for approximately $126 million, located at 1,500 Sherman Avenue, the 268 unit building sits in the heart of downtown Evanston, a key spot for Northwestern university students, faculty, and local commuters. Completed in 2020 by Oakbrook-based Albion residential, the building is virtually full, sitting at a 99% occupancy rate. If the sale closes at the expected price, it will mark the largest apartment transaction in Evanston since late 2024 when the nearby E2 complex went for $148 million. This move continues a busy run for Draper and Cramer. Founded back in 1893, the storied firm recently clashed out of a long-held South Loop Tower for nearly $166 million, and made headlines late last year with an $88.5 million purchase in Oak Park. Overall, the local apartment market is seeing a major resurgence. According to real estate service firm Newmark, Chicago area apartment sales jumped 91% year over year in the first half of 2026,

23:42as buyers jump back into the market following years of high interest rates. Brokers with Jones laying the sell are handling the sale. Neither Draper and Cramer nor Albion residential have publicly commented on the pending trade. Online lender Anova International has abruptly scrapped its $369 million deal to buy Grasshopper Bank Corp, walking away from plans to become a traditional bank holding company. It is withdrawing its applications with federal regulators, citing a murky and increasingly hostile regulatory environment. Anova CEO Steve Cunningham didn't hold back, stating that bank regulatory attitudes have failed to keep pace with the needs of millions of underserved customers and small businesses. Cunningham warned that without clear standards, the approval process becomes vulnerable to political pressure and outside advocacy rather than strict legal criteria. That political pressure was very real as Cranes Mark Wein Rob has been reporting.

24:43Just two months ago, Illinois Attorney General Kwame Raul urged federal regulators to block non-traditional lenders like Anova from securing bank charters, arguing it would allow them to push high interest loans nationally. Anova defended its model, pointing out that mainstream banks largely ignore borrowers with lower credit scores. Faced with a potentially long-costly battle and the risk of an outright denial from the Fed and the office of the Comptroller of the Currency, Anova chose to cut its losses. The decision carries a $5 million breakup fee payable to Grasshopper. Wall Street's reaction was swift and punishing. Shares of Anova plummeted more than 19% in after-hours trading, erasing a massive chunk of what had been a standout year for the stock. Despite the setback, Anova reaffirmed its financial outlook, projecting third quarter revenue growth around 25%. Anova isn't the only local online lender attempting this crossover. Competitor OpFi announced its own $130 million bank acquisition earlier this year.

25:47OpFi has not yet commented on whether Anova's regulatory roadblock will impact its own plans. With early voting already underway across the nation, the U.S. Supreme Court is stepping in to keep current mail-in voting rules right where they are. In a major decision handed down Monday, the High Court refused to let the U.S. Postal Service enforce new restrictions on mail ballots for the upcoming congressional midterm elections. The ruling rejects an emergency request from the Trump administration and leaves in place a Boston Federal Judges order that blocks the Postal Service from making those new rules mandatory through election day. The timing is critical. States like North Carolina and Alabama have already begun mailing out thousands of ballots to voters with dozens more states set to follow in the coming days. The blocked rules would have forced states to submit lists of eligible mail-in voters directly to the Postal Service and adopt federally approved ballot envelopes. A coalition of 25 states, including Illinois, filed suit to stop the changes.

26:51Illinois Attorney General Kwame Raoul argued the federal restrictions unlawfully intrude on state authority to run elections and risk disenfranchising voters. The decision provides immediate certainty for state election authorities, including here in Illinois, where officials are preparing to begin sending out mail ballots on September 24. With control of a slim Republican majority in Congress on the line this November, election officials across the country can now proceed under their existing mail-in procedures without last minute operational overhauls. That's Crane's Daily Just For Now. Check in on our continuous news feed at ChicagoBusiness.com. Thanks so much to today's guest, dining reporter, Ali Maradi. You can hear all our conversations on Apple podcasts, Spotify, or wherever you get audio on demand. Remember to follow our show that way every new episode will be dropped right in your feed. Our show is produced by Todd Manley at Ear site Studios.

27:53Thanks for listening, I'm Jean Sparrow, and I'll meet you right back here next time. Okay, Mr. Fluevers. Meow wants to find the best cat mama in the whole wide world. Okay, Meow wants to fit Shiba time and I'm the best. I knew you loved me. Go from ignored to adored with Shiba Grilled. It's protein rich and made with real chicken or seafood. Tap to buy now or find at your favorite retailer. Here's the thing about cyber threats. They don't clock out at five. They work weekends, holidays, probably while you're listening to this. That's why you need CDW. We bring together security technologies, strategies, and solutions to gain clearer visibility and to risk while strengthening resilience. So instead of chasing threats, you can focus on what matters most. We configure, optimize, and deliver the tech that runs business. CDW make amazing happen.