A trend is emerging in San Luis Obispo: Parts of the city seem to be transforming into more of a dining/entertainment center and less of a retail hub.

San Luis Obispo County's accommodation and food jobs increased from about 13,100 in February 2010 to about 13,400 in February 2011, according to data released by Beacon Economics. The trend seems to more prevalent in downtown San Luis Obispo, where a bevy of restaurants have replaced retail stores. But it might be a good thing.

The economic climate has created an opportunity for entrepreneurs to work with landlords and open businesses that will do well in a place like San Luis Obispo, said Steve McCarty, owner of Stafford - McCarty Commercial Real Estate, which specializes in retail, office, industrial and investment properties.

In the downtown area, Muzio’s Grocery & Deli, Chipotle and soon-to-open The Habit, all take the place of the space that was occupied by Sports Authority; Subway took over the space previously inhabited by La Rouge on Marsh St.; Enzo’s East Coast Eatery recently opened where Therapy, a retail clothing store, used to be; and Creeky Tiki is now in the space that once was Johnsons for Children.

“This creates more of a downtown experience,” McCarty said. “Having the downtown area shift to more of a dining and entertainment center is a great way to increase foot traffic to the more traditional stores. This trend was very successful in Pasadena for their economic turnaround.”

And still more restaurants around other parts of San Luis Obispo have been taking the place of retail or other commercial spots: Panera on Madonna Road was Blakeslee & Blakeslee, Jaffa Café was a flower shop, and Meze in the Railroad Square building was a photography studio before the fire devastated the building in 2002.

But unlike other areas, San Luis Obispo seems to attract more independent restaurants rather than chains.

“Having a vibrant downtown that isn’t peppered with national chain restaurants isn’t a bad thing; it makes coming here a different and unique experience,” McCarty said.  

New eateries are said to be opening soon in spaces that were once used for retail purposes. SLO Co Pasty Co. is opening this summer where a watch shop was located on Chorro Street. And Urbane Café, a gourmet sandwich shop, is reportedly coming to downtown San Luis Obispo in the space previously occupied by San Luis Surf shop and Meridian furniture store.

“That’s the beauty of a free marketplace – there is always a possibility of transition,” said Dave Garth, president/CEO of the San Luis Obispo Chamber of Commerce. “It’s encouraging to see empty spaces now being filled with creative new businesses, and we can’t wait to see what pops up next.”