Canal Winchester's Waterloo Crossing Lost Three Restaurants. Here's What the City Says Is Moving In.

"People are obviously very interested when any restaurant closes about what's happening with those spaces." Canal Winchester Development Director Haire said that to City Council on September 21, according to the meeting minutes. He then went through the closures one at a time.

If you shop at Waterloo Crossing, you've watched Las Margaritas, Pizza Hut and O'Charley's go dark. Almost every one of those empty storefronts already has a new tenant signed. Only one building has no new name on it yet. The bigger changes to your weekly errands are happening north on Diley Road and in downtown buildings that are being split into smaller spaces.

Most of the empty spaces are already leased

Here's how the turnover looked as of the city's spring and fall updates.

Mi Mexico isn't new to the area. In September, Haire described it as "another Mexican restaurant operator" that already runs a location on East Main Street. He said the company had asked the city about improving and occupying the old Las Margaritas space. Nothing Bundt Cakes is further along. The city has already approved its plans for the former Pizza Hut, and Haire said work on the space should start "very soon." Council minutes from that meeting place both sites in Waterloo Crossing.

The O'Charley's corner may sit empty all winter

The old O'Charley's is the exception. The building closed when the entire chain closed. Casto owns the building, and O'Charley's still holds the lease. Haire told council that the lease has to be terminated through the chain's bankruptcy before Casto can rent the space to anyone else. "It may be a few months, if not more," he said, and "there may be a delay over the winter here in trying to get someone to backfill that space."

He also said there are "interested parties already in that space," and called it "a 6,000-foot restaurant building at a great corner." The city's meeting highlights put it more simply: once the space can be leased, it's expected to go quickly.

So until that legal process wraps up, the dark building on that corner doesn't mean nobody wants it. It's tied up in paperwork. Council members asked about upkeep in the meantime. Haire said Casto, as property manager, would handle cleanup, though snow removal over the winter may not happen.

Waterloo Crossing is also getting bigger

Waterloo Crossing isn't only replacing tenants. It's adding space. Casto is building an 11,094-square-foot addition that fills the gap between two existing buildings near Las Margaritas. A summer city newsletter places it between Las Margarita's and Planet Fitness. The July 2026 economic development update says it will hold a Five Below and one more tenant space that is still available.

The Walmart next door is changing too. It's adding onto the building so online grocery pickup can move from the front of the store to the east side. It's also getting a full remodel, and a Dunkin' is going inside, in the area currently used for order fulfillment. In March, city officials also mentioned a separate Dunkin' planned for Winchester Pike.

Put together, this shopping area should have more storefronts once the work is done than it had before the closures.

Diley Road is becoming a second shopping hub

The biggest new project sits on Diley Road. Kroger's new Marketplace at 8200 Diley Road is set to open in mid-November, according to the city's July update. The summer newsletter put completion "by Thanksgiving."

NBC4 reported that the plans Kroger submitted to the city describe a 122,910-square-foot store with a drive-through pharmacy, grocery pickup and a fuel center with seven pumps. Grocery Dive put the size at about 118,000 square feet. NBC4 also reported that the Diley Road store joins the existing Kroger at 6095 Gender Road; it doesn't replace it. That means the town will have two Krogers.

Kroger doesn't build stores like this often. At the March 2 council meeting, Council President Laurie Amick shared a note from the Canal Winchester Industry and Commerce Corporation report: Kroger "has not opened a brand-new store in 20 years."

The roads around the store are changing to match. City planning minutes from June said Greengate Boulevard is now open all the way from Diley Road to Hill Road. A 6,553-square-foot Sun Auto Tire & Service has been approved at the corner of Diley Road and Meijer Drive, and that project will connect Meijer Drive to Hill Road. Gender Road is busy too. A Culver's opened there this summer, and a RaceTrac is planned for 5811 Gender Road.

The national chains are building out on the edges, along new roads.

Old Town is filling up one small space at a time

Downtown changes look different. The buildings are older and smaller, and the city helps tenants fit into them. At 60 E. Waterloo St., right across from City Hall, a single building was leased to two businesses: Sweets of Grace and a bookstore selling homeschool supplies. The Canal Winchester Industry and Commerce Corporation used its grant program to help pay for a new restroom. That restroom is what made it possible for two tenants to share the building. Sweets of Grace now operates there as a bakery and book lounge.

A few blocks away, Columbus Underground reported in October that Jam Jam, a Cajun food operation serving jambalaya, gumbo and étouffée, is cooking inside Sweet Harmony at 30 Liberty St. The outlet listed its hours as Tuesday through Thursday, 5 to 9 p.m.

The March update also listed other downtown spaces in transition:

• 25 N. High St., the former I-Promo space, has about 1,740 square feet available for lease.
• The Don Hartman Inc. building has a new owner, and the Landmarks Commission has already approved a facade renovation.
• 100 Cemetery Road, formerly Heavenly Treats, is becoming Prewitt's Early Education Center, a daycare.

The city is also working on how people get downtown. The summer newsletter says the McGill Park expansion is underway, and a state grant will help pay for a walkway linking the park directly to downtown.

All roads lead downtown in December

The new Kroger is on Diley Road, but the town's biggest holiday events still happen on Old Town's streets. Mark these dates:

1. Friday, Dec. 4: The BrockStrong Foundation Light up the Night Holiday Lights parade runs first, then Christmas in the Village starts downtown from 6 to 9 p.m. Santa lights the tree at Stradley Park.
2. Saturday, Dec. 5: Night two, same hours, with Santa lighting the tree again. Both nights are free and include Santa visits, a holiday craft bazaar, an iceless skating rink, kids' activities, a gingerbread house contest and holiday music.
3. Both nights: The Canal Winchester Area Historical Society's Storybook Christmas, themed this year around A Charlie Brown Christmas, takes place at the Historical Complex, 10 W. Oak St.
4. Saturday, Dec. 12: Breakfast with Santa runs from 8:30 a.m. to noon, according to the city calendar.

Destination: Canal Winchester says many downtown shops and restaurants plan their own activities during the event, from visits with classic cartoon characters to crafts and giveaways. The Lancaster Eagle-Gazette called last year's event the 19th annual, which makes this year's the 20th.

Wondering how all this new construction and leasing affects home values on your street, or what a new Kroger nearby does for your home's appeal? Bryce G Smith follows these Canal Winchester projects closely and brings a construction manager's eye to what's being built. Schedule a free consultation and we'll go through what's changing near your address.