Encino’s Islands Restaurant Shuts Down

After 19 years on Ventura Boulevard in Encino, Islands Restaurant has closed.

The shuttering follows a pattern of closures the Islands chain has made during the past three years in areas where retail has suffered.

“Islands Restaurants closed the Encino location on Oct. 16, 2011, as the store was not achieving a level of sales that would justify keeping this location open,” the Carlsbad-based company said in a prepared statement.

“Employees at the Encino location will have the opportunity to continue to work for the company at one of their other Islands Restaurants,” the statement said.

Founded in West Los Angeles in 1982 by Tony DeGrazier, the restaurant was conceived as a re-creation of DeGrazier’s dining experience in the 1960s while stationed in Oahu in the U.S. Navy. Privately held, the chain has expanded over the years. It currently has 52 restaurants in California, Arizona, Nevada and Hawaii. Offering a tropical beach-inspired ambience, the chain serves burgers, soft tacos, salads and exotic drinks.

Islands has maintained its financial health over the years by opening restaurants in newer suburban and upscale neighborhoods and closing those in areas that decline. A recording at the Encino Islands restaurant directs patrons to its location in Woodland Hills. The chain also operates in Porter Ranch and will soon open a new restaurant in Redondo Beach.

The Encino closure surprised neighborhood groups and residents who assumed nearby offices and stores along Ventura Boulevard would provide enough workers for a healthy lunch and dinner business for the restaurant. However, the number of "For Lease" and "Available" signs in nearby office and retail complexes indicates the toll the economic downturn has taken on the Encino stretch of the boulevard.

“I’ve lived here since 1979,” said Gerald Silver, head of the Encino Homeowners Association, “and, it depends on how far back you want to go, but there used to be lots of restaurants on Ventura—Chuck’s Steak House, Kings Arms, Red Tractons, Rosie’s Barbeque, Love’s Barbeque and a number of salad bars.

“They have pretty much gone by the wayside, but some of the fast-food places are doing pretty well,” Silver said.

Brock Burnett, who is seeking to find a new tenant for the 7,400-square-foot space vacated by the Islands, said the large size would more likely suit nationally known chains who might be willing to take a five- or ten-year lease.

"We've had a lot of inquiries," Burnett said, "and we're in discussions with some chain restaurants."

Islands Restaurant at 15927 Ventura Blvd. (between Gloria and Gaviota avenues) is now closed.