Not a Good Time to Be in the Restaurant Biz

Two weeks ago I posted a rumor I'd heard about South by Southwest, closing its doors (I had a VERY reliable source) and that post was picked up by Smitty who confirmed that the restaurant had indeed closed.  Today I read in a post by Laura Giovanelli on the Journal's food blog that in addition to South by Southwest the Cotton Mill had also shut down. I never made it to the Cotton Mill, but based on Laura's opinion of it I'm truly sorry I missed it.

The restaurant business is brutal any time, but during tough economic times restaurants, particularly higher end restaurants, struggle even more. When money is tight the first place most people will cut their expenditures is eating out, and when you have the combination of higher food prices and higher gas prices like we have now a restaurateur has to work very hard to get people through the door.  As Laura says in her post:

Sometimes, I try to brush off all the economic gloom and doom. Maybe I’ve listening to too much NPR, I’ll think. But it’s been obvious for months now that local restaurants are struggling, particularly the higher end ones, the ones with white tablecloths and the like.

I'm fairly certain we're going to see quite a few more "white tablecloth" restaurants close their doors in the next year or two.  Of course others will eventually replace them, but that doesn't help the many owners who have worked so hard to build their businesses and develop a loyal fan base.  From a selfish point of view it also doesn't help the customers who lose their favorite dishes, or the places that house so many cherished memories like anniversary dinners, graduation celebrations, etc.

To end on a positive note I recommend that you check out the Journal's food blog Dishing it Out.   It's coauthored by Michael Hastings and Laura and they do a great job of keeping it fresh. Personally I think it's the paper's best blog now (sorry Ken).