SAN ANTONIO – Losing your favorite restaurant is like losing a beloved friend. You get used to the flavors, the people and the atmosphere that make the place feel like a foodie heaven –– even if it’s just temporary.
Acadiana Cafe, The Rustic, Augie’s BBQ, Jim’s Restaurants on San Pedro and Broadway, Saucy Birds and Sangria on the Burg have all closed within the past 12 months.
These beloved San Antonio restaurants have closed in recent months
Why the restaurant industry is so important to Texas
The National Restaurant Association compiled the following statistics for Texas based on data from the Bureau of Labor Statistics, Bureau of Economic Analysis and U.S. Census Bureau in 2023:
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Restaurants are the largest private employer in the state.
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These businesses contributed $106.8 billion to the Texas economy in 2023.
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There are more than 56,000 eating and drinking locations in our state, with over 1.4 million employees.
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Restaurants make up 11% of jobs in Texas.
Inflation hurts everyone, including restaurants
By now, most of us have felt the effects of inflation, especially when we go out to eat.
“We’re at a point now where consumers really can’t afford to pay anymore. They’re feeling the pinch, whether it’s at the grocery store, at the gas pump, with their rent, with their utilities. And so, restaurants are having to make really difficult choices,” said Kelsey Erickson Streufert, chief public affairs officer for the Texas Restaurant Association.
Unfortunately, restaurants are not immune to it either; as it is, they’re already narrow-margin businesses. Food, labor and occupancy costs account for roughly 70 cents for every dollar of sales, according to the Texas Restaurant Association.
“Food costs are up 29% compared to pre-pandemic levels. That’s a huge new added cost,” Erickson Streufert said. “Labor costs are up anywhere from 20% to 30% to 40%, depending on the type of job and location. The fees that restaurants pay when you pay with a credit card. They’re called swipe fees. Those costs have skyrocketed in recent years.”
Restaurant owners have been hit with higher prices in nearly every aspect of their business.
“Pretty much every good or service that a restaurant needs to purchase in order to deliver that great experience to a customer costs significantly more these days,” Erickson Streufert said.
Construction woes
Many restaurant owners have to make difficult decisions, especially in San Antonio, where high prices are not the only thing affecting them. Ongoing construction projects are also taking a toll. However, some progress is being made on that front.
“(State) Sen. (Jose) Menendez in the San Antonio area has been a huge help with the construction issues. So, our members in San Antonio, led by Dawn Ann Larios, have had several meetings with Sen. Menendez and the officials over at TxDOT, our Department of Transportation. And that’s been really helpful,” Erickson Streufert said.
Erickson Streufert said these talks help create better plans to suit the needs of business owners and their patrons.
“We know construction is a part of life. But when we’re able to coordinate with our elected officials, with our policymakers, we can have better communication and better planning around when closures happen, how they’re communicated, how we are setting up signage and other things for the public so that they are still able to access restaurants. And that’s been a big help,” she said.
Hope on the horizon
Erickson Streufert said that while the economy has been tough on business owners, the data has been consistent in a few things.
“One, consumers still love dining out in restaurants, and they will prioritize their spending to make sure they can dine out in restaurants or get to-go food from restaurants,” she said. “The convenience factor is huge. But also, just the quality of food and the quality of your time. Right? People want to have that time sitting around a table, having someone serve them, having that hospitality. And so, we know that restaurants are still a very in-demand service, even in this tough economic climate.”
Erickson Streufert said that restaurants pivoting to fulfill customers’ needs are surviving, and many are finding success in making the right changes.
“So, the good news is, even though the economy is really tough right now for many restaurants, many are succeeding and even thriving because they’re leaning into value and leaning into experience,” she said.
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