
New restaurants are moving into downtown St. Augustine, but others say the crowds have become too much. | Noah Hertz, Jacksonville Today
By Noah Hertz / Florida Today
Published on April 8, 2025 at 2:38 pm



As St. Augustineโs fame grows, it could be chasing away some of its local restaurant owners.
New owners are looking to get a piece of the cityโs increasing popularity, but some restaurateurs are seeking to get out of the hustle and bustle of the downtown core and into quieter areas that are hotter with locals.
St. Augustine was a lot sleepier in 2006 when chef Michael Lugo opened Michaelโs on Cuna Street downtown. These days, there are some many visitors that residents, for much of the year, donโt want to brave the downtown core.
โThat congestion in that historic zone, itโs so driven toward tourism that it makes it hard to get a repeat customer to brave that congestion,โ Lugo says.
So earlier this year, Lugo closed the steakhouse downtown and moved over the Francis and Mary Usina Bridge to Vilano Beach. Itโs a community that he sees as up and coming, and he wants to be a part of that.
โTo me, it seemed like a great opportunity to be in the first row of what would be very limited growth, because it isnโt big enough for what happened downtown,โ Lugo says.Chef Michael Lugo recently moved his steakhouse, Michaelโs, to Vilano Beach. He operated his restaurant in downtown St. Augustine for nearly 20 years. | Old City PR, Melissa Marcarelli
Another restaurant leaving downtown St. Augustine is The Floridian, which is moving to St. Augustine Beach. Owner Jeff McNally opened the southern restaurant with his wife, Genie, in 2010.
โWe set out to be a restaurant for locals and regulars,โ McNally says. โWe wouldnโt exist without tourists either, but our original goal was to restore a space in the downtown restaurants that entice locals to come back and know there are local, good quality restaurants down there.โ
He has enjoyed running a restaurant downtown, but McNally describes the day-to-day operations as โintense.โ
โFeast or famine,โ he says. โCrazy for those holidays, and then it could turn off.โ
A big draw for moving to the beach is the freedom to do more with their square footage. The McNallys plan to build their new restaurant from scratch, something you canโt exactly do in a historic downtown with some buildings that are a century old.
The couple will close their downtown location this summer, and their goal is to have their location at the beach open by the end of 2025 or early next year.Jeff and Genie McNally opened The Floridian in downtown St. Augustine in 2010. After the southern restaurant closes this summer, it will reopen in St. Augustine Beach. | Old City PR, Justin Sr
Eating in or dining out?
For as many restaurateurs look to get away from the breakneck pace of running a restaurant downtown, thereโs more coming in.
The French Pantry and Little Miss Ha are two restaurants that are set to open across from the Lightner Museum downtown later this month. Owner John Valentino says St. Augustine is going through a โnew phase in life,โ and he is excited to be there.
โThereโs a culinary gentrification going on,โ Valentino tells Jacksonville Today. โMore new options for local and tourist traffic.โ
Gentrification is a hot topic. By definition, itโs the process in which wealthy people move into an area, bringing new business opportunities and housing. But that influx of new money can drive away people who canโt afford the new way of life.
St. Augustineโs footprint is limited to what is already there โ there isnโt much more room to build out โ and Valentino says that whatโs really happening is that property values are increasing.
โAnyone who bought a 2,500-square-foot bungalow in Lincolnville 10 years ago, they probably tripled their property value. So why is that bad?โ Valentino asks. โI just feel like everything thatโs going on is good. Why would your property values going up be bad?โ
New items on the menu
More people in town means more hungry mouths to feed, but as the density of tourists in downtown St. Augustine increases โ like when the city saw a record number of people come to town for last yearโs Nights of Lights event โ people who live nearby might be less keen on braving the busy traffic to eat downtown.
โIt is true that it can be extremely challenging to operate downtown,โ Karen Zander says. โBut every restaurant group that I ever talk to wants to be downtown. And the majority of them are not looking anywhere else.โ
Zander owns 97Park Residential & Commercial Real Estate, where she works closely with restaurant owners who want to open their doors in St. Augustine. Sheโs also the co-founder of the St. Augustine Business Coalition, a group that promotes business interests in the city.
There may be some growing pains, but she says the change St. Augustine is undergoing is a good thing.
โItโs really interesting to see the evolution of the dining scene downtown. It is still mainly locally owned restaurants,โ Zander says. โItโs still really a chef-driven local restaurant scene, but what theyโre doing in upping the experience and raising their game. Itโs really cool to see.โThe French Pantry is already popular in Jacksonville, but the bakery and restaurantโs new spot in St. Augustine. It will share space with Little Miss Ha, a Vietnamese restaurant. | Noah Hertz, Jacksonville Today
When she talks to her clients, she tries to make a few things clear: Itโs expensive to operate downtown; thereโs a real chance your restaurant may flood; and you have to be ready to accommodate a lot of people during the busy tourist seasons.
โWhen I bring restaurant spaces to market downtown โฆ itโs almost like I have to weed out so many people to get to the people that are truly capable of doing it,โ she says. โI ask a lot of questions before I get to the point where I say, โYes, Iโll show you the space.โโ
What Valentino calls gentrification, and what has led to some restaurant owners deciding they might be better off outside of downtown St. Augustine, is something Zander owes to advertising efforts to bring in wealthier tourists.
โTheyโll spend more money, and they want high-class experiences,โ she says. โThe type of visitors we see versus 10 years ago is a much different visitor.โ
But Zander says those new visitors exacerbating existing mobility challenges has led to exactly the kind of situation that restaurant owners Lugo and McNally identified.
โI think the challenge with locals is they donโt want to deal with the lack of parking,โ Zander says. โLocals are not going to ride a shuttle from somewhere. They do like the restaurants, but they do have to have some sort of viable parking.โ
There are competing visions for the future of St. Augustineโs downtown. Some people argue that downtown needs more parking spots, while others envision a St. Augustine with less of a focus on parking and more focus on multi-modal transportation โ things like shuttles that bring people from parking lots on the periphery to the cityโs core and bike share programs to thin the number of cars on the road.
As long as there is a deficit of parking spaces downtown, or until the city can find a way to thread the needle between those two visions, Zander says downtown St. Augustineโs audience is going to skew toward people who arenโt from around here. At its worst, she says the city runs the risk of creating a โmini Disney Worldโ out of its downtown core.
But for now, even as some owners pack their bags for quieter parts of St. Johns County, the people coming in are ready for the next chapter.
โI just believe that St. Augustine is a great place,โ Valentino says, โand you canโt really change what itโs originally about. Itโs just going to, over time, evolve.โ
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