As Americans feel the pinch of inflation, fewer are dining out.
A 2023 report from Placer.ai shows a nearly five percent dip in sit-down restaurant visits compared to the previous year. This marks a notable shift in how we’re spending our dining dollars.
City Eats on the Decline
Even New York City, a beacon for food lovers, isn’t immune to economic downturns.
From December 2023 to January 2024, over 40 establishments shut their doors for good, unable to recover post-pandemic.
The Midwest Feels It Most
The economic squeeze is tighter in the Midwest, where many communities see more empty tables.
The region’s lower population and income levels mean its restaurants are often hit hardest, with nearly every local spot feeling the impact.
Des Moines Dining Downturn
In Des Moines, Iowa, the story is similar, with many restaurants closing due to a lack of customers.
This trend affects establishments old and new, illustrating broader issues within the local food scene.
Empty Tables
“There’s a lot less people,” observes Abby Sheffer, a Drake University law student, during an unusually quiet meal at a local BBQ joint, as reported to KCCI.
Her experience highlights a stark decline in patronage that many eateries are experiencing.
Shifts in Consumer Habits
More people are opting to eat in, says Monica Wilke-Brown, a Des Moines local.
The comfort of home cooking has become more appealing, a shift likely cemented during the long months of lockdowns.
A Local Favorite Folds
Gusto Pizza, a beloved Des Moines eatery for almost ten years, recently closed its doors.
This beloved spot’s shutdown marks a significant loss for the community and reflects wider industry struggles.
Rising Operational Costs
Jessica Dunker, CEO of the Iowa Restaurant Association, sheds light on the financial hardships facing eateries, saying: “the cost of goods is up 30 percent and they are having to shell out higher wages to keep staff on.”
These rising costs are pushing many to the brink.
Loan Repayments Loom
Repaying loans taken during the pandemic is now a heavy burden for many restaurants.
These debts were meant to be temporary lifelines, but as Jessica Dunker points out, the current low foot traffic makes repayment challenging.
Uncertain Futures
“The future is uncertain for many small independent restaurants,” says Jessica Dunker.
She highlights a worrying trend not just in Iowa but nationally, as restaurants struggle to project their viability over the next decade.
A Nationwide Downturn
Iowa’s restaurant woes are part of a national crisis.
From coast to coast, similar economic pressures are forcing numerous small, independent establishments to close their doors, reflecting a troubling trend across the industry.
What Lies Ahead for Dining Out?
As the restaurant industry confronts these tough times, the future of dining out hangs in the balance.
Navigating these challenges will be crucial for restaurateurs aiming to carve out a sustainable path in a rapidly changing economic environment.
