TYLER, Texas (KLTV) – Several well-known restaurants have closed across East Texas in recent weeks, including Corner Bakery, Razoo\u2019s, True Vine, Spring Creek BBQ and Roma Italian.<\/p>\n
So, is this normal?<\/p>\n
Scott Williams, East Texas Chapter Chairman of the Texas Restaurant Association, said the region is experiencing an unusual number of closures.<\/p>\n
\u201cWe\u2019ve seen a number of closures, which we\u2019re not used to in East Texas,\u201d Williams said.<\/p>\n
Williams said cost increases are a primary factor driving the closures.<\/p>\n
\u201cFood is more expensive\u2026 Labor is more expensive to pay,\u201d Williams said.<\/p>\n
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.<\/p>\n
\u201cI 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,\u201d Williams said.<\/p>\n
It also raises the question: are people just not eating out as much?<\/p>\n
Statewide data shows 52 percent of restaurants are seeing fewer guests each week.<\/p>\n
\u201cConsumers are spending less,\u201d Williams said.<\/p>\n
Taylor Ball, general manager of The Porch at East Texas Brewing Company, said they feel the slowdown.<\/p>\n
\u201cIt\u2019s scary\u2026 When they close down, it\u2019s kind of a, okay, this isn\u2019t a joke… Even the regulars\u2026 they come in a little bit less frequently,\u201d Ball said.<\/p>\n
Ball said fixed costs remain constant despite reduced customer traffic.<\/p>\n
\u201cJust because people don\u2019t come in the door doesn\u2019t mean your landlord or that the food distributor\u2019s going to be like, \u2018oh yeah well, you\u2019re not getting so much business, let\u2019s lower this down\u2019,\u201d Ball said.<\/p>\n
Changing ordering habits also affect restaurant operations. Delivery apps like DoorDash can help reach customers but can reduce already thin profits.<\/p>\n
\u201cDelivery apps came real strong during COVID and they\u2019re not going to go anywhere,\u201d Williams said.<\/p>\n
Now the community is asking: Should East Texas expect more restaurant closures?<\/p>\n
Williams said he does not expect closures to continue at the current scale.<\/p>\n
\u201cI don\u2019t think it\u2019s going to be mass additional restaurants closing down,\u201d Williams said.<\/p>\n
Industry leaders said community support can help local establishments survive rising costs.<\/p>\n
\u201cWhen you go to a locally owned restaurant, that money is staying here,\u201d Williams said.<\/p>\n
Ball emphasized the connection between restaurants and their communities.<\/p>\n
\u201cWe are our community at the end of the day,\u201d Ball said.<\/p>\n
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.<\/p>\n
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