Support your favorite places, they may be more fragile than you think.
In a time when people are grappling with their own economic pressures and chasing the latest food trends on social media, it’s easy to overlook the hardships felt by restaurants. But restaurants are what make Houston a cultural haven. And the ones owned by our hardworking neighbors are worth supporting.
From the outside, a restaurant can look like a far sexier business than it is. In reality, it’s grimy and dirty — words real restaurant owners used with me — and it requires relentless passion to keep one alive, now more than ever.
So why was this year so challenging? Here’s a recap of the hurdles.
Many restaurants came into the year still hurting from the expenses and loss of business from a derecho and hurricane in 2024. Multiple restaurants, including Waffle Bus, told me their insurance didn’t help them because of fine print that disqualified them from a payout. Two weeks closed in the Heights for Waffle Bus meant tens of thousands of lost revenue, not including bills to fix refrigerators and outside signs; that’s where the problems started.
Dry January kicked off the year with what felt like record participation as health-conscious lifestyles gained momentum. Alcohol sales dropped across the industry, a major blow for restaurants where alcohol often drives profit.
At the same time, the widespread use of GLP-1 medications like Ozempic changed consumer habits by curbing appetite and interest in drinking.
Valentine’s Day could’ve helped business, but then the three-week stretch of the rodeo in March halted momentum. It was a tough time for restaurants not near NRG Stadium. Both Riel and Auden shared their business concerns due to the rodeo, despite personally loving the event. Auden closed in April; Riel in August.
April brought the most uncertainty, and the anxiety lingered for months. President Donald Trump announced sweeping tariffs on nearly all imports. While some of those plans were later rolled back, the announcement spooked restaurateurs and customers alike.
“The couple days where the stock market dipped like crazy because of the tariffs, we were instantly slower,” said Johnny Cheung, owner of Hong Kong Food Street. “People see the bad news and they either don’t want to go out or they’re worried so they don’t want to spend money.”
Cheung saw prices from vendors rise by 10 percent overnight. The impact varied by cuisine and sourcing, but food costs were one of the most persistent issues I heard about all year. Eggs and beef were particularly affected.
Food prices have been high and rising since the pandemic, and owners told me they rarely come back down. When costs rise, menu prices follow. But recently, restaurants have hit a ceiling. A James Beard Foundation survey found that restaurants raising prices by 15 percent or more in 2024 experienced declining profits, fewer customers and poorer perception of overall performance. If costs keep climbing and prices can’t, restaurants bleed money. That can only go on for so long.
Rent was another pressure point. Landlords are asking for more, and many restaurants without deep-pocketed investors can’t sustain it. In the Heights, a 2,500-square-foot space was going for more than $20,000 a month.
New immigration policies also contributed to fewer diners. Andy’s Cafe believes it saw a drop in customers in early summer due to fear of ICE raids; the restaurant is located in a predominantly Hispanic neighborhood.
All these issues collided at a time when the number of restaurants had ballooned in recent years. The Texas Restaurant Association confirmed earlier this year the Houston restaurant scene was oversaturated after a surge of openings post-pandemic.
Tariffs, labor shortages due to insane immigration crackdowns, higher insurance costs due to the effects of climate change – boy, what do all of those things have in common? For as great a food town as Houston is, I tend to eat in the same handful of places in my neighborhood. That’s partly because I’m not that adventurous palate-wise and partly because I don’t want to do more driving than I have to, but mostly because I want to help keep those places in business in my neighborhood, because they make my neighborhood a better place. Maybe when I’m retired and have more free time I’ll roam around more. But for now at least, I’m just trying to help maintain the character of my neighborhood.
Good luck to the restaurant owners. Sorry, I’ve stopped ordering take-out. At $16-$18 for a dinner entree, I just can’t justify it. As to a sit-down lunch or dinner, same thing–economic pressures. I am becoming a better cook, however.