As a consumer, it’s natural to develop an emotional connection to certain local businesses you visit often.
You might spend a little more money at your neighborhood toy store, as opposed to the Target or Walmart down the road. But in exchange, you might get much better customer service.
Plus, it feels nice to know that you’re helping to keep a family business in town.
You may be even more inclined to develop a strong connection to your favorite local restaurants.
There’s something about getting to enjoy a great meal without having to cook it yourself. And there’s also something inherently comforting about recipes you know you truly enjoy.
But in this economy, it’s gotten harder for restaurants to stay afloat, namely due to factors like:
- Increasing food costs
- Rising labor costs
- Tightening margins
- Changing consumer habits
So not surprisingly, restaurant closures have been par for the course this year.
Image source: Getty Images
A local favorite Mexican restaurant is closing its doors for good
Mexicali Rose isn’t a world-renowned dining establishment. Rather, it’s a fairly unassuming eatery located in an equally unassuming shopping center in Newtown, Connecticut.
What Mexicali Rose is known for, though, is its authentic Mexican menu, great prices, and fantastic customer service. And now, after a very successful 30 years, the restaurant is closing its doors for good.
Related: Beloved 117-year-old Home Depot rival closing, liquidating
Mexicali Rose actually closed temporarily in late August after a car crashed into the front of its business. The restaurant was expected to resume business as normal following that incident, so its closure announcement not long after has come as a shock to its many fans.
On its Facebook page, the owners of Mexicali Rose broke the heartbreaking news that its last day of business would be Sunday, Sept. 21.
“This was not an easy decision,” the owners wrote. “We know this news is emotional not just for us, but for many of you who have been part of our extended family here over the years.”
Restaurants need to get creative to stay alive
A big factor in Mexicali Rose’s decision to shutter was the declining health of one of the owners. But the reality is that elevated living costs and stubborn inflation have been forcing consumers to make tough decisions on how they spend their money. For many, that’s meant cutting back on restaurant meals.
In August, the Consumer Price Index rose 2.9% on an annual basis. Restaurant prices were up 3.9% year over year during that same period.
Related: Grocery, supermarket chain closing 12 stores (locations revealed)
At a time when so many people can barely afford to keep the lights on at home, it stands to reason that cutting back on restaurant meals is a sad but necessary choice.
But given how common restaurant closures have been lately, it’s important for small business owners to get creative to keep their doors open. That could mean partnering with other local establishments on promotions or offering loyalty programs that the major chains can’t beat.
If local restaurants continue to close, not only will it devastate their fans, but it could hurt local communities.
Many local restaurants support food banks, sponsor sports teams, and employ neighborhood teenagers looking for a way to make money to pay for college or buy their first cars. If too many of these establishments disappear, many communities stand to suffer.
More Retail:
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- Top investor takes firm stance on troubled retail brand
- Walmart and Costco making major change affecting all customers
Plus, even though many national restaurant chains pride themselves on great customer service, it’s often hard to beat the mom-and-pop dining experience. That’s something fans of Mexicali Rose are surely going to miss.
Related: Popular grocery chain closing 4 locations by mid-October
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