Downtown Raleigh businesses hopeful Q1 data points to new growth: 'Excited to be a part of it'

RALEIGH, N.C. (WTVD) -- New numbers from Raleigh economic officials show downtown dining and retail are making progress in building back to pre-pandemic growth.

First quarter data from the Downtown Raleigh Alliance shows an increase in new storefronts and year-over-year increases in food and beverage sales.

"I love to watch the growth of the city and I'm excited to be a part of it, truly," said Ashley Faries, owner of Lucky Tree, a cafe and bakery that just opened its new location in Moore Square.

Faries said the decision to expand her business into downtown Raleigh wasn't a particularly difficult one. Lucky Tree has an original location along Hillsborough Street, and with the opening of the Moore Square cafe this month, city officials hope Faries is exactly the type of business owner who is reversing the sluggish return of foot traffic downtown post-pandemic.

"Definitely willing to take the risk," Faries said. "There's always risk involved, but... we're so happy to be here. And really, the support of the city, the support of our customers, our artists, our makers."

According to the Downtown Raleigh Alliance, downtown saw 33 new storefront businesses in the first quarter of 2025, while 23 closed. Food and beverage sales rose 9.8% in Glenwood South and 6.8% on Fayetteville Street over the same time last year.

"You've got these entirely new areas that are coming up downtown, which just adds to the diversity of options and the dimensions in terms of interest, in terms of tenants and types of fits for tenants," said Will Gaskins, the DRA's Vice President of Economic Development and Planning.

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Gaskins believes the trend has been buoyed by an increase in downtown housing. More than 1,300 new residential units have become available downtown in the last year, bringing the total number downtown to more than 10,000 for the first time. He says they're filling up.

"Over the last several years, we've been averaging over 200 units of specifically apartment units being absorbed every quarter," Gaskins said. "So you can just quantify the amount of people that are just moving into downtown over a period of time and the, you know, the staying power that that has."

For new bars and restaurants like The Crunkleton -- a popular Chapel Hill business that recently opened a new location in Raleigh's Smoky Hollow neighborhood-- that strategy is already paying off.

"We did a lot of shopping around the Raleigh area. And we were really interested in being here because it is so up and coming. It has gone through a wonderful revitalization," said Caroline McNeill, General Manager at The Crunkleton's new downtown location.

ABC11 stopped by the new spot, which opened less than two months ago, on Thursday night. It's in the shadow of several large residential buildings.

"I think it's very clearly saying that the Raleigh is ready for four more places to come and hang out and have great drinks and great food," McNeill said.