Behind The Scenes Of Restaurant Closures That Surprise Us All

About three weeks ago many were stunned when 37 Eats, a restaurant in Toms River posted on Facebook that after much thought and consideration they were permanently closing.  Most of the 250 people who commented were confused because they always found the place crowded when they dined or drank there. There did not seem to be any hint that the restaurant was in trouble after being opened for a couple of years and no reason for the closing was given by ownership.

I mention this because most of us have no idea what goes into running a restaurant and especially a successful one.  It is no secret that it is a very challenging business as only about 50% of them make it to the fifth year.  Just think of all the places you have seen fail and close their doors after just a short time in operation.

Of course in some cases the reasons are obvious.  Bad location, bad food, bad service.  But today there are other reasons which are often reasons for failure. High rent, increasing labor and food costs, skyrocketing utility costs.  While customers don’t see that it is very often the main factors in a restaurant closing their doors.

We have all noticed that many places have raised prices on their menu and the truth is they are only doing that to keep up with the increased costs they have…and even that is often not coming close to covering that. Knowing many people in the business they do not like to raise food and drink costs but often that is the only way to stay in business and keep their doors open.

The next time you see a seemingly popular restaurant close don’t be surprised.