Economic crunch hits Nick’s Pizza

Neither of Nick’s Pizza and Pub locations is closing yet, but owner Nick Sarillo emailed a list of frequent customers Tuesday to say the company’s future is uncertain.

The Crystal Lake location has been open for a little more than 16 years, building a solid community presence with a business model geared toward giving back. As a frequent site of fundraisers for community organizations, the restaurant has long committed to donating 5 percent of its profits.

When Sarillo opened an Elgin location at Bowes and Randall roads, he said it was tied to a forecast for 80,000 people moving into Bowes Road subdivisions and plans for a Walmart opening in 2008.

But those subdivisions remain largely empty and the Walmart pushed back its project date, only now opening late next month.

Sarillo blames himself for the financial woes of the restaurant, pointing to a high-performing staff of about 200 people that are not at fault.

“I’m the one who made the bad real estate deal, and I’m the one who didn’t put enough money in the bank to weather the bad storms,” Sarillo said.

Sales at the Elgin restaurant declined in 2008 and have continued to do so since then, according to Sarillo. At first, the Crystal Lake location’s success made up for the losses but that is no longer true.

Sarillo said the company is already behind on some of its payments. No one needs to worry about canceling any events at either location in 2011 but Sarillo said he can’t make any promises beyond that.

The letter to customers was meant to encourage people to stop by.

“I didn’t write that expecting a handout,” Sarillo said. “I just said if there’s ever a time to come have a good meal, now is the time.”

The new Super Walmart will open Oct. 26 across the street from the Elgin restaurant, and Sarillo said he’s been told by a Walmart manager the store expects to make 35,000 transactions per week. Construction at the Bowes and Randall roads intersection that has plagued the restaurant since April — contributing to a 30 percent drop in sales — has finally wrapped up. So there is hope.

“The best thing we can do is get people in here,” Sarillo said.