Atlanta’s Parking Problem Is Eating Restaurants Alive

Typically, when arguably great restaurants close, there’s a collective gasp of surprise. Yet when Eater broke the news in February of a sudden rash of restaurant closures on Atlanta’s West Midtown, the ensuing response was shocking… in that most Atlantans weren’t shocked.

In comment after comment on Instagram, one word unfailingly came up: parking.

The rising cost of parking in this notoriously car-dependent city has become an increasingly sore point, especially when rideshares experienced a median 7.5 percent jump in cost in 2024, according to a report by Gridwise, Inc.

National parking reservationist SpotHero reports the average cost in Atlanta’s participating facilities starts at $15 — this is on par with Miami and only $5 less than New York City’s weekend rates, and more than Los Angeles and Chicago for weekends and events.

Meanwhile, this is in addition to the more than 2,400 parking meters the City of Atlanta has installed to collect fees until as late as 10 p.m., per the 2009 ParkAtlanta proposal; these meters were taken over by ATLPlus in 2017.

And with the city’s rapid growth, parking costs that seemed nominal have become cost-prohibitive. While some free parking remains in parts of the city, confusing or missing signage, private lots, broken meters, parking scams, and varying rules make it a gamble just to dine out. As disparate neighborhoods are revitalized and commercial deserts are rapidly turned into trendy new live/work/play developments, like the Works and Abrams Fixtures, there are no concrete plans for expanding public transit. The lack of affordable parking options, as the comments on Instagram made overwhelmingly clear, has would-be diners — and restaurants — in a chokehold.

Who are the players?

Consumer choice feels like an illusion; multitudes of brands quietly roll up or feed into supercorps. Parking in Atlanta is no different, as ATLPlus is also Mobile +, which syncs Parkmobile, Pay By Phone, Flowbird, Passport, and SpotAngels. In turn, Mobile + is part of SP Plus (SP+) Corporation, which manages parking for over 100 major cities and was acquired by Metropolis Technologies, Inc. for $1.8 billion, turning the AI-assisted company into the largest parking network and operator in the U.S.

In other words, public parking is big business in Atlanta.

Susan Stapleton

Outside of the city’s partnership, there are corporate ones. LAZ Parking, “the fastest growing and second largest parking company in the country,” has an enormous footprint across Atlanta, managing 129 locations — including hotels, commercial and residential buildings, plus landmarks like Westside Provisions, Buckhead Village, and Ponce City Market — within the Perimeter and the Battery. Many go by different names and have varying rates, from $2 to $14 hourly. Meanwhile, going beyond validated time limits at spots like Colony Square can rack up a bill of up to $60 for self-parking, making $35 for valet sound like a bargain.

Blue Hominy PR [Official]

Other providers include Legacy Parking, National Parking, and lots privately owned by developers and landlords in bids for vertical integration — a business strategy where one company operates various facets that loop back into its umbrella corp. Or, as Pat Pascarella, chef and partner at the Porchetta Group, bluntly calls it, double-dipping.

“With rent going out of control [Atlanta’s is growing twice as fast as the national average], why does the property owner need to charge for parking on top of that for a double dip? It’s the little guys against the big guys” — from consumers to restaurateurs — “and no one gives a shit.”

Who pays the price?

While consumers may feel the pinch, management and maintenance of parking lots come with a price businesses often have to bear. In addition to adhering to legal parking minimums (typically one space per 100 square feet of floor area in Atlanta), restaurant owners have to factor parking fees into their overhead, which can vary by volume. They’re “at the mercy of the landlords” — a lament shared verbatim by half the sources Eater spoke with, including those who have requested anonymity for fear of retaliation and rent hikes.

“Since the landlords at our other locations provide complimentary parking, we assumed the same would apply to Star Metals” when scoping out a location for Lucky Star, says Jasmine Yates, area manager for Lucky Momo Hospitality, its parent brand. They assumed wrong, and after opening, opted to cover the cost of parking for at least two hours for their customers. Otherwise, it’s $6 to $8 an hour, depending on the lot chosen. “Even for employees, it’s $112 monthly, so we’re trying desperately to work out a better deal for all parties.”

In some developments, validation costs are divided among all tenants based on square footage, regardless of patronage, such as with Snap Thai Fish House. But because these fees are recalculated every March, “we don’t see the final breakdown of parking expenses until then,” says general manager Tou Xiong, making it a challenge to plan ahead.

Additionally, dependency on third parties makes it difficult to have a set parking rate for diners. For example, the time allotted for parking was reduced last year from three to two hours. Xiong is asking to reinstate that hour, which would mean an additional $13 value for diners, but, “the decision is out of our hands,” he says.

For restaurants that aren’t part of a larger development, this can mean footing a bill that’s not only unpredictable, but sizeable. Bastone’s lease requires renting spaces from 8 West, plus hiring a valet company for roughly $15 per car. Then, to ensure the valet makes a livable wage, diners still pay a $5 valet fee.

“For the two combined, we pay close to $4,000 a month for parking that we eat the cost on,” Pascarella says. But “at Grana, we don’t charge because the valet makes enough money off tips, so we just pay them a base fee every month.” Despite that, Pascarella says he pays $24,000 yearly for parking rent at the Piedmont location.

At luxury spots like Lazy Betty, where you’re expected to linger longer and parking is charged by the hour, chef and owner Ron Hsu estimates a cost of $40,000 yearly to his business in parking space rent.

Sara Dorio

But not all contracts are equal, even in the same development, and those who own multiple restaurants have to make the tough decision on where to invest in validating. Tal Baum (Oliva Restaurant Group) pays a premium to validate valet during lunch at Carmel. But validating self-parking at sister restaurant Bellina Alimentari in Ponce City Market would “consume our entire margin,” already narrow at “10 percent of a two-person check,” she says. Similarly, Hartley Kitchen & Cocktails and Aveline at the Shane will credit $10 toward its $50 valet cost, with a $75 minimum spend — which amounts to nearly 15 percent of the check.

Yet it’s necessary. “Imagine having a rocket ship — something you’ve poured everything into — only to find out the one thing keeping you from reaching full potential is parking,” says Josh Rossmeisl, founder of Your 3rd Spot of AMP Up1 Hospitality. “That hurts. We work relentlessly to create something special, but if a guest’s first experience is circling a lot, getting hit with unexpected costs, or just leaving out of frustration, that’s not easy to recover from. Parking remains the most frequent complaint in every survey we’ve done.”

Sticker shock can hurt business. For example, many visitors were put off in the early days of Pullman Yards’ special events when it cost $40 to pre-reserve a spot, hurting attendance for events that should theoretically draw droves, such as the Night Market series. Adding to the confusion, ParkMobile rates vary depending on any given lot’s event or location, and it’s not well-publicized that parking is free for those dining at Fishmonger or Brick and Mortar. It’s easy to argue that these affordable and arguably good restaurants would be busier if not tarred by yearslong association with expensive spaces.

As chef and owner of Brush Sushi, Jason Liang explains, “Guests equate overall value with not just the quality of service and food and beverage options, but also with parking convenience and the accessibility of the location.” And, Rossmeisl says, consumers have a hard time separating businesses from the people who own the lots.

“With rising prices across the board in restaurants … guests have no choice but to factor parking fees or rideshare expenses, often mentally grouping the cost into the restaurant experience itself,” says Kasey Cheng, director of operations for Ryokou and Omakase Table.

The free parking unicorn

Taylor Cross, complex marketing manager at Omni Atlanta Hotel at Centennial Park, says free parking is well worth drawing locals to New South Kitchen. With the luxury of owning its own parking facility, it’s able to partner with a third-party valet, happily shouldering the cost of both to encourage Atlantan clientele. The Burgess Hotel in Buckhead also chooses not to charge for self-parking, making dining at Fia more attractive.

In Atlantic Station, free two-hour deck parking and a free shuttle from MARTA make it easier to spend time and money there, and two extra free hours of parking with a movie ticket create a ready-made date night.

Chattahoochee Food Works

Not only was the promise of the Works’ two parking decks alluring to Juan Calle, co-founder of TQM Hospitality, when scoping out a location for Chicheria, but so was their original offer for free parking. Selig Enterprises, developer of the Works, says that it invested $18 million in parking and road extension to make the development more attractive to visitors and tenants. Today, the Works limits guests to two hours of free parking “with no direct cost to us,” Calle says, despite affiliation with ParkMobile. Visitors pay as much as $10 for two to four hours beyond the free parking time limit.

The Great Suburban Migration

Downtowns in neighboring suburbs like Alpharetta, Marietta, and Sandy Springs offer city-owned lots and decks with various ranges of free parking. This is attracting visitors and businesses looking for a break from the pricey city center.

According to a Sandy Springs spokesperson who wishes to remain anonymous, the operating costs of one of its parking amenities are “upward of $600,000 annually, not including maintenance of the facility.” The downtown decks in Alpharetta cost between $75,000 and $150,000 a year each, says economic development acting manager Charlotte Christian, and are part of the 2011 bond referendum that “paved the way for key infrastructure.” She considers this investment a “strategic decision aimed at supporting both our residents and local businesses … This ultimately encourages more people to explore our city, spend time there, and support local businesses.”

Avalon

Perhaps this is why the suburbs are sounding a siren call to some of Atlanta’s finest restaurants as they look outside the Perimeter: Delbar, South City Kitchen, Foundation Social Eatery, and Cuddlefish have OTP locations. National brands like Cooper’s Hawk Winery & Restaurants debuted in Alpharetta for their first Georgia location. Developments like Avalon in Alpharetta (soon home to NFA Burger) and Politan Row at Ashford Lane — both of which offer ample free parking — and expansions in the Battery in Smyrna all signify growing confidence in the willingness of businesses and diners to leave the city bounds. All while West Midtown has seen the closure of greats, such as Aziza, West Egg Cafe, Humble Pie, and Le Fat.

“Guests who vote with their feet have shown that neighborhoods like West Midtown can absolutely struggle when parking is not a priority, even when the food is great. It’s certainly a shame to see such great neighbors moving out of the area, but it’s a reminder that guests factor more than just menu price and service into their decisions, but also the seamlessness of getting in and out,” says Cheng.

Customers are unwilling to spend as much on parking as they spend on lunch, Hsu recalls from his involvement with now-shuttered Humble Pie. He adds, “Full-service restaurants will have to compete even more with takeouts if parking is too complicated or expensive … Many diners, including myself, will consider cost and ease of parking when dining.”

Looking forward

Yet Rossmeisl has hope for the neighborhood, saying, “West Midtown is booming … The businesses that survive here are the ones that listen, adapt, and fight for their guests. That’s why we’re still here.” Since Your 3rd Spot opened, “two years later, parking has improved in some ways, but challenges remain,” especially with not-yet-disclosed changes coming up the pike for the Works.

With no official plans for transit improvements or regulations, how the city and developers will address the pain point of parking is anyone’s guess. But as for the restaurateurs, “We have to show up, evolve, and find ways to succeed no matter what,” Rossmeisl says. Even if, for now, it means hemorrhaging money to help diners pay for Atlanta’s parking problem.