Oliva restaurant is just one of the latest to close in a year of heavy closures with restaurants facing mounds of pressure from high rent, a tough economy and increased competition on all fronts. Oliva was a Spanish tapas bar located in a prime location on Houston and Allen, now up for $13,500 a month rent.
This steady increase in restaurant closings is not just occurring in New York City, with notable restaurants shutting down in Florida as well, such as Fetishes Fine Dining, which was just closed by the landlord after 18 years of business. The economy is certainly a factor in the recent closings, but since 2007 the economy has slightly improved, while it seems as if more restaurants are closing now than ever. Many restaurants in cities with food trucks have turned to blaming these mobile vendors for their business stagnation. However restaurants are still closing even in cites with highly regulated or nonexistent food trucks.
The fact is, the turnover rate in the restaurant industry is at its peak, with new restaurants opening and closing every day. Taking a look at the time and money needed to open a restaurant, that’s thousands of dollars invested into every new establishment, and with so many closing so soon, that translates into barely any return on investment. In an economy with high unemployment, the restaurant industry is most volatile, creating and losing thousands of jobs with each cycle.
While a solution may not immediately be on hand, one of the best ways to help this industry is to alleviate their overhead costs. High rent and labor costs are out of our control, but many deliverymen rely on tips as a major supplement to their wages. In addition, most online ordering websites charge up to 20% per order, for essentially providing nothing but a platform for customers to order from. The power is in the consumers’ hands to support local restaurants and keep their doors open. Next time you choose where to eat, try a local option where you know your business will be most appreciated. For more on sustainable online ordering click here.
DailyFoodtoEat is the official blog of FoodtoEat, a sustainable online food ordering and concierge catering service featuring your favorite restaurants, food trucks and caterers. Check out the deliciousness here: www.foodtoeat.com