TYLER, Texas (KLTV) – Several well-known restaurants have closed across East Texas in recent weeks, including Corner Bakery, Razoo’s, True Vine, Spring Creek BBQ and Roma Italian.
So, is this normal?
Scott Williams, East Texas Chapter Chairman of the Texas Restaurant Association, said the region is experiencing an unusual number of closures.
“We’ve seen a number of closures, which we’re not used to in East Texas,” Williams said.
Williams said cost increases are a primary factor driving the closures.
“Food is more expensive… Labor is more expensive to pay,” Williams said.
According to the Texas Restaurant Association, restaurants operate on margins of just four to five cents in profit for every dollar spent. The association reports 88 percent of restaurants are dealing with higher food costs and 66 percent say labor costs have increased.
“I think the restaurants face the same thing that we do. We go to the supermarkets, and we see increased costs on beef and different items. And the restaurants are feeling the same thing,” Williams said.
It also raises the question: are people just not eating out as much?
Statewide data shows 52 percent of restaurants are seeing fewer guests each week.
“Consumers are spending less,” Williams said.
Taylor Ball, general manager of The Porch at East Texas Brewing Company, said they feel the slowdown.
“It’s scary… When they close down, it’s kind of a, okay, this isn’t a joke… Even the regulars… they come in a little bit less frequently,” Ball said.
Ball said fixed costs remain constant despite reduced customer traffic.
“Just because people don’t come in the door doesn’t mean your landlord or that the food distributor’s going to be like, ‘oh yeah well, you’re not getting so much business, let’s lower this down’,” Ball said.
Changing ordering habits also affect restaurant operations. Delivery apps like DoorDash can help reach customers but can reduce already thin profits.
“Delivery apps came real strong during COVID and they’re not going to go anywhere,” Williams said.
Now the community is asking: Should East Texas expect more restaurant closures?
Williams said he does not expect closures to continue at the current scale.
“I don’t think it’s going to be mass additional restaurants closing down,” Williams said.
Industry leaders said community support can help local establishments survive rising costs.
“When you go to a locally owned restaurant, that money is staying here,” Williams said.
Ball emphasized the connection between restaurants and their communities.
“We are our community at the end of the day,” Ball said.
Industry leaders said restaurant closures often cluster at the start of the year due to accumulated costs from food, labor, property and consumer spending. While some businesses may close, others are expected to open and fill those spaces in the months ahead.
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