TYLER, Texas (EAST TEXAS NEWS) – A number of well-known restaurants have closed in East Texas in recent weeks, including Corner Bakery, Razoo’s, True Vine, Spring Creek BBQ, and Roma Italian.
So, is this normal?
Scott Williams, president of the East Texas chapter of the Texas Restaurant Association, said the region is experiencing an unusually high number of closures.
“We’ve seen several closures, something we’re not used to in East Texas,” Williams said.
Williams noted that rising costs are a major driver behind the closures.
“Food is more expensive… labor is more expensive,” Williams said.
According to the Texas Restaurant Association, restaurants operate on profit margins of only four to five cents for every dollar spent. The association reports that 88 percent of restaurants are dealing with higher food costs and 66 percent say labor costs have increased.
“I think restaurants are facing the same thing we are. We go to supermarkets and see higher prices for beef and other items. And restaurants are experiencing the same,” Williams said.
This also raises the question: are people simply not eating out as much as before?
Statewide data shows that 52 percent of restaurants are receiving fewer customers each week.
“Consumers are spending less,” Williams said.
Taylor Ball, general manager of The Porch at East Texas Brewing Company, said they’re feeling the slowdown.
“It’s concerning… When places close, it feels like saying: ‘this isn’t a joke’… Even regular customers come by less frequently,” Ball said.
Ball explained that fixed costs stay constant despite the drop in customer flow.
“Just because people aren’t walking through the door doesn’t mean the owner or the food supplier is going to say, ‘well, you don’t have as much business, so we’re going to lower prices,’” Ball said.
Shifts in ordering habits are also impacting restaurant operations. Delivery apps like DoorDash can help reach customers, but they can cut into already thin profits.
“Delivery apps became very popular during the COVID-19 pandemic and they aren’t going away,” Williams said.
Now the community wonders: should East Texas expect more restaurant closures?
Williams said he does not anticipate closures continuing at the current scale. “I don’t think there will be a massive wave of additional restaurant closures,” Williams said.
Industry leaders said community support can help local establishments weather rising costs.
“When you go to a locally owned restaurant, that money stays right here,” Williams said.
Ball emphasized the connection between restaurants and their communities.
“In the end, we’re part of our community,” Ball said.
Industry leaders noted that restaurant closures tend to cluster early in the year due to accumulated costs of food, labor, rent, and reduced consumer spending. While some businesses may close, others are expected to open and occupy those spaces in the coming months.
