Business

Plans revealed for Hilton Head retail space as local restaurants pushed out

Architects have revealed plans to turn an aging retail space on Hilton Head into an event space for SERG Restaurant Group.

The designs for the new space have come to light weeks after two family-owned restaurants that occupied the building received notices to vacate.

PDG Architects has submitted plans to transform the Atrium Building, located at 840 William Hilton Parkway between the former Stacks Pancakes and Home2 Suites by Hilton. Renovations include revamping the exterior and creating three event spaces in the interior.

The first floor will house offices, a new retail space for takeout, a new commissary kitchen and a small event space.

On the second floor, several walls will be demolished to create two large event spaces divided by a foldable wall. Together, the second-floor event spaces can accommodate up to 360 guests. A catering kitchen will also be created on the second floor.

The exterior of the building will undergo a “total face lift,” modernizing the look and feel of the building that was constructed in 1987.

Design documents show how the SERG group plans to give exterior of the Atrium Building a “total face lift.”
Design documents show how the SERG group plans to give exterior of the Atrium Building a “total face lift.” PDG Architects / Town of Hilton Head Island Design Review Board

The Town of Hilton Head Island Design Review Board will review plans for the facility at their Wednesday meeting.

Two Atrium restaurants displaced

Plans to transform The Atrium building have displaced two family-owned restaurants at the location. Owners received notices from property management company MSK Commercial Services on Dec. 23, informing them that they needed to vacate the building by Feb. 1.

Red Stripes Caribbean Cuisine and Lounge closed on Jan. 17. The restaurant is actively searching for a new location on the island; Red Stripes’ Bluffton location will remain in operation.

Owner Lakesha Daley called the closure “abrupt and deeply troubling,” leaving Red Stripes “scrambling to relocate.”

Ezron and Lakesha Daley, owners of Red Stripes Caribbean Cuisine & Lounge, are pictured here on Thursday, Aug. 20, 2020 in their restaurant located on Hilton Head Island. The restaurant announced the closure of its Hilton Head location earlier this month, but the Bluffton location will remain open.
Ezron and Lakesha Daley, owners of Red Stripes Caribbean Cuisine & Lounge, are pictured here on Thursday, Aug. 20, 2020 in their restaurant located on Hilton Head Island. The restaurant announced the closure of its Hilton Head location earlier this month, but the Bluffton location will remain open. Drew Martin dmartin@islandpacket.com

Vickie Arbogast, owner of DryDock Seafood & Spirits, confirmed to The Island Packet that her restaurant will also be closing after 32 years of operation.

“We’re going to be missed by the community,” Arbogast said. “It’s bittersweet and it’s heartfelt for us ... but my husband has been in the food and beverage business for 45 to 50 years, and it’s time to go on.”

This story was originally published January 27, 2026 at 11:53 AM.

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Li Khan
The Island Packet
Li Khan covers Hilton Head Island for the Island Packet. Previously, she was the Editor in Chief of The Peralta Citizen, a watchdog student-led news publication at Laney College in Oakland, California.
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