Why Your Favorite San Antonio Restaurants Are Closing Down or Struggling to Survive

Local Eating Scene Falls Victim to Tough Economic Climate

The bustling city of San Antonio finds itself in the throes of a worrying trend as some of its best-loved restaurants shutter their doors. Places that have long been a part of the city’s food culture, such as The Rustic, Acadiana Cafe, Augie’s BBQ, Jim’s Restaurants on San Pedro and Broadway, Saucy Birds and Sangria on the Burg have all ceased operations within the past year. It is indeed a sad reality that we are witnessing the closure of establishments that have been favorites for many residents and tourists alike.

Inflation’s Impact on the Restaurant Industry

As a result of inflation, the cost of eating out has gone up immensely, with consumers feeling the pinch in every aspect of their lives – groceries, utilities, rent, and more. But the restaurant industry bears the brunt of the economic hardship. It’s a hard-to-swallow fact that restaurants are narrow-margin businesses to start with and any significant increase in operating expenses can lead to severe financial strain. They pay around 70 cents for every dollar of sales towards food, labor and occupancy costs, according to the Texas Restaurant Association.

“Food costs are up 29% compared to pre-pandemic levels. That’s a huge new added cost. 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, called swipe fees, have skyrocketed in recent years,” quotes industry expert Kelsey Erickson Streufert. All these factors combined, the restaurant owners are caught in a tight spot with higher expenses in almost every aspect of their operations.

Construction Problems Worsen the Situation

San Antonio restaurants are not just battling high prices; they are also grappling with ongoing construction projects that add to their woes. Conditions are seemingly getting better through efforts from state officials like Sen. Menendez, who has been coordinating with the Department of Transportation to curb these concerns.

“We can have better communication and better planning around when closures happen, how they’re communicated, and how we are setting up signage and other things for the public so that they can still access restaurants,” says Erickson Streufert, highlighting that accessibility is key to keep the businesses afloat amidst construction activities.

Signs of Hope for the Struggling Industry

Not all is lost though. Despite the tough economic conditions, many businesses are finding success by adapting to the circumstances and meeting customers’ changing needs.

“One, consumers still love dining out in restaurants, and they will prioritize their spending to ensure they can dine out in restaurants or get to-go food from restaurants. The convenience factor is huge, as is the quality of food and the quality of your time,” Erickson Streufert points out. She further adds that many restaurants are seeing success due to their ability to pivot amidst changes.

As San Antonians heartily bid goodbye to their beloved eateries, there are many others stepping up their game and thriving despite the adverse economic conditions. It remains to be seen how the city’s gastronomic landscape shapes up in the future amidst these challenging times.