Sanford Nowlin
In December, Deco Pizzeria owner Jacob Valenzuela posted on social media that the restaurant was at risk of closure.
Sari-Sari Supper Club, Sangria on the Burg and Carnitas Lonja — all nationally renowned, all favorites of Alamo City local foodies — will shut their doors permanently by year’s end.
Around the same time, several other less high-profile eateries reached out for help on social media, warning that they too are close to shutting down.
The sad news was a culmination of a year of rising prices, weak consumer spending and uncertainty for San Antonio restaurateurs.
“Everything is just so different, post-pandemic,” Sari-Sari Supper Club co-owner Camille De Los Reyes said of the strain. “We have no idea what works anymore.”
De Los Reyes’ Sari-Sari Supper Club is known for expanding San Antonio diners' knowledge of Filipino cuisine. Although De Los Reyes and her husband will permanently shutter the restaurant Dec. 23, they’re soldiering on with their three other food businesses, including the food truck Jeepney Street Eats, Sari-Sari Filipino Restaurant, Market & Bakery in Leon Valley and Sari-Sari Stone Oak.
“It’s truly a tough time for small business owners,” she added.
The COVID-19 pandemic devastated the food and beverage industry nationwide, forcing layoffs, closures and other drastic measures. Even as the economy fully reopened in 2022, many owners are left little choice but to raise prices to make up for soaring costs for ingredients, labor, energy and more.
A year later, those issues have only grown in intensity, local restaurateurs said.
A March 2023 survey by consulting conglomerate Deloitte found that customers also were tightening their belts as a result of inflation.
“Although customers seem to have an insatiable taste for restaurants, many are feeling the pinch economically,” according to the report. “Customers want less expensive options alongside promotions and discounts. These motivators would compel 37% of dine-in guests and 40% of takeout guests to order from restaurants more often.”
Dollars and discounts
It stands to reason consumers want to spend less for the same or better quality of food and service. However, the clincher is that small, locally owned businesses can’t afford to offer daily — or even weekly — promotions and discounts.
“Our menu items are priced accordingly, so what you’re paying for is on par with the quality of ingredients we use,” said Deco Pizzeria owner Jacob Valenzuela. “We don’t skimp on quality, and sometimes I wonder if that’s going to be our downfall.”
On Dec. 15, Valenzuela alerted diners in a social media post that the financial struggles may force him to close down.
“Since COVID, our struggles remain the same: staffing shortages; increase [sic] food cost and increases in overhead expenses. We continue to be optimistic, but the reality is that every day is a struggle,” the post read. “I am not certain how much longer we can keep our doors open.”
Despite the challenges facing San Antonio restaurateurs, national surveys suggest that that revenues are going up. Bar and restaurant sales increased by 8.5% over the past nine months, according to a National Restaurant Association study — that’s five times more than the sales gain in non-restaurant retail sectors during the same period.
Eager to burn off pent-up demand accumulated during the pandemic, consumers nationwide seem to be prioritizing dining out, a separate December study by the association found.
These numbers aren’t being reflected in San Antonio, restaurant owners argue.
“People just aren’t spending money like they used to,” said Braunda Smith, owner of the Lucy Cooper’s Texas Ice House chain. “It breaks my heart every time I see a small business close its doors, because these are local families that are being impacted. Costs are out of this world, staffing is still a struggle, we are all feeling the pressure.”
Fixed costs
Food and operating costs continue to be a headwind for many local restaurants. Deco Pizzeria owner Jacob Valenzuela said his rates on fixed operating costs such as rent, utilities, insurance and taxes continue to rise whether consumers are spending more money.
“I often have a $3,000 CPS bill, and my rent has been raised significantly in the last three years,” he said. “I’m trying to work with my landlord on my rent, but the daily goal is to make sure I can keep the doors open, but it gets harder every day. I sincerely have no idea how much time we have left.”
Valenzuela said he recently visited another San Antonio restaurant and sat with its owner during a busy shift. Even though the restaurant was full, the woman spoke to him with tears in her eyes about the uncertain future of her family’s business. He declined to name the business.
“This is a 60-year legacy we’re talking about,” Valenzuela said. “And we’re in danger of losing it.”
As restaurant closures proliferate, local diners are hurled into the task of protecting such legacies. After all, their dollars are what keep San Antonio’s vibrant and diverse culinary landscape thriving.
At the same time, owners recognize that consumers are also struggling. Median income in the San Antonio area dropped roughly 2% between 2019 and 2022, according to U.S. Census Bureau data.
Consumers’ support doesn’t always have to come in the form of dollars spent at a restaurant, however.
“Obviously, making plans to stop into your favorite mom-and-pop shop once or twice a month is beneficial, but support can also mean a leaving a positive online review, or sharing your good experience with friends,” Sari-Sari’s De Los Reyes said. “I only wish we’d had more visits, more support, before we had to make the difficult decision to close the Supper Club.”
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