<\/p>\n
Rising costs have put many restaurant operators in an impossible position. They can cut expenses or raise prices. And with consumers facing their own financial problems, raising prices may simply cause more people to stay home.<\/p>\n
“Total restaurant expenses jumped 36% since before the pandemic,” according to a July report from the National Restaurant Association (NRA).<\/p>\n
The NRA explained how restaurants operated before the pandemic. <\/p>\n
Food and labor costs were the two most significant line items, each accounting for approximately 33 cents of every dollar in sales.\u00a0Other expenses \u2014 such as utilities, occupancy, supplies, general\/administrative, repairs\/maintenance, and credit card processing fees \u2014 combined to represent about 29% of sales.\u00a0<\/p>\n
“That left a pre-tax profit margin of roughly 5% for a typical restaurant, which means significant cost increases were not sustainable,” the NRA reported.<\/p>\n
That pressure is hitting consumers as well. The NRA also found that 36% of consumers reported spending less at restaurants than they had the previous quarter.<\/p>\n
It’s a math problem that even celebrity chef Tiffani Faison, who won Season 3 of Food Network’s “Tournament of Champions” and serves as a recurring judge on “Chopped” and “Guy’s Grocery Games,” can’t solve. <\/p>\n
Tiffani Faison closing her Boston restaurants<\/p>\n
Sweet Cheeks, a barbecue eatery that has also been featured on Food Network, and its sister eatery Fool\u2019s Errand will close later this year because Faison said the operating environment has become impossible to navigate.<\/p>\n
She explained to Boston.com why she has decided to close both restaurants when their leases expire, with the last night of service being Nov. 24.<\/p>\n
“Sweet Cheeks is my first baby, and this is one of the hardest decisions I’ve ever had to make,” she said. <\/p>\n
More Restaurants:<\/p>\n
52-year-old international restaurant chain closing all locations46-year-old casual dining chain closes underperforming locationsClassic burger chain has closed down all its restaurants<\/p>\n
Faison made it clear, however, that it was simply too expensive to run the two restaurants.<\/p>\n
\u201cIt is cost-prohibitive to have restaurants now,\u201d Faison said. \u201cRight now, we\u2019re paying for fuel charges that are in addition to what we already pay because the Strait of Hormuz is closed and gas is heinously expensive. And we are paying tariffs on things that come from other countries. And then there are things that are just expensive anyway. The price of food has gone up. We pay a fair wage, and that is really hard to do.\u201d<\/p>\n
Faison is seeking a new location for Sweet Cheeks and still runs a number of other restaurants through her Big Heart Hospitality restaurant group, including Bubble Bath, Charming Gardener, Dive Bar, Tenderoni\u2019s, Tigerbaby, and newcomer, The Temp Agency.<\/p>\n
A number of restaurants are closing in the Fenway area of Boston.<\/p>\n
Shutterstock<\/p>\n
Even celebrity restaurants are struggling<\/p>\n
Faison noted that operating costs have forced other restaurants with strong reputations to close and called on Boston’s mayor, Michelle Wu, to help. <\/p>\n
\u201cFor every building that\u2019s built with housing in it, there\u2019s a requirement that a certain percentage of that is affordable housing,\u201d Faison told Boston.com. \u201cWhy is that not the same for first- and second-floor retail, for local restaurateurs and local business?\u201d<\/p>\n
She also placed some of the blame on customers.<\/p>\n
\u201cYou have to come on a Monday night,\u201d she said. \u201cYou can\u2019t just come in one Saturday every couple of months and expect your favorite restaurants to survive. It\u2019s not gonna work.\u201d<\/p>\n
Even Gordon Ramsay, one of the biggest-name celebrity chefs, shared that it’s a challenging operating environment.<\/p>\n
\u201cIt\u2019s been a really hard-fought year, but at the same time an exciting year, and in tough times it amazes me how strong and vibrant our industry is. It\u2019s challenging out there, and businesses are battling to stay afloat, [amid] rising costs, rent, and food costs, multiple strikes. It\u2019s a battle,” The Guardian reported.<\/p>\n
Chris Bianco, a James Beard Award-winning pizzaiolo and restaurateur, commented on the expense of running a restaurant to Axios Phoenix in 2023.<\/p>\n
“A disappearing workforce, astronomical food costs and expensive real estate are just a few challenges the industry’s faced with,” Bianco said. “The real cost of running a restaurant today isn’t what it used to be.”<\/p>\n
Related: 103-year-old furniture giant closing its doors forever<\/p>\n
#Famous #chef #closes #restaurants #shares #troubling #reason<\/p>\n","protected":false},"excerpt":{"rendered":"
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