Los Angeles, once a dining capital of America, is facing an unprecedented crisis in its restaurant industry, marked by the closure of high-profile establishments such as Ricardo Zarate’s Rosaline and Michael Mina’s Mother Tongue.
The recent closure of iconic landmarks like Cole’s, known as the inventor of the French dip sandwich since 1908, has underscored the challenges facing local eateries. The city, which thrived in the first two decades of this century due to affordable rents and a wealth of fresh ingredients, is now grappling with dwindling patronage post-pandemic. In just the first eight months of 2025, OpenTable reported a 5% decline in dining room activity across the L.A. metro area compared to the previous year. This decline has severely impacted profit margins for many full-service restaurants.
Pablo Rivero, CEO of competing reservation platforms Resy and Tock, explained the broader issues contributing to this gastro-crisis. He highlighted how disruptions can shake the fragile foundations of the restaurant business, which typically operates on tight margins.
Several factors have been named which restaurateurs say contribute to these tough times. The advent of GLP-1 weight loss drugs has reportedly reduced appetites, while younger generations, particularly Gen Z, show less interest in alcoholic beverages, leading to lower average checks. Furthermore, decreased tourism from countries including Canada, compounded by President Donald Trump’s tariff wars and isolationist policies, has impacted restaurant foot traffic.
Josh Loeb, owner of several Westside restaurants, clarified that a 5% to 10% profit margin can quickly evaporate amid rising costs and declining sales. He noted that the past five years have been especially challenging, influenced by a confluence of market pressures.
The entertainment industry’s struggles have further exacerbated the situation for local restaurateurs. The 2023 writers and actors strikes have had a crippling effect on the industry, resulting in layoffs and a subsequent decrease in customers who frequent restaurants. Tal Ronnen, chef-owner of the plant-based Crossroads Kitchen in West Hollywood, remarked on how those losing jobs in the entertainment sector are often the same patrons who sustain restaurants.
Additionally, the growing popularity of streaming services has changed dining habits. Josiah Citrin, whose restaurants include the two-Michelin-starred Mélisse, pointed out that the traditional practice of dining out before or after movies is shifting towards ordering in.
Recent years have been fraught with adversity, with the pandemic, labor strikes, wildfires, and immigration-related civil unrest creating continuous challenges. Sang Yoon, owner of Helms Bakery and Father’s Office in Culver City, observed that the cumulative effects of these events have placed immense pressure on local businesses. An outpost of Father’s Office shuttered this summer in response to recent riots.
The issues extend beyond economic factors, as crime and homelessness in L.A. create additional concerns for diners. Dina Samson, co-owner of Rossoblu and co-founder of the Independent Hospitality Coalition, emphasized the necessity of feeling safe when going out to eat.
Many restaurateurs feel envious when observing how other cities handle dining experiences more effectively. Alejandro Marin, who operated Loreto and the now-closed Cha Cha Cha, voiced his frustration with how they compare to vibrant dining scenes elsewhere.
A significant factor hurting L.A. restaurants is the consistent rise in operational costs. Ingredient prices have soared, as have repair costs for equipment, alongside spiking insurance premiums tied to worker compensation and Americans With Disabilities Act claims. Matt Egan, owner of Mirate and Daisy Margarita Bar, noted that the escalating costs of litigation are burdensome for the entire industry.
The increase in minimum wage has also created significant financial strain. With the minimum wage nearly double what it was a decade ago and currently at $19.65 per hour in some areas, restaurateurs express frustration over how this drags down small businesses while living costs remain high. Cobi Levy, a partner at Alba in West Hollywood, lamented his inability to address the housing crisis affecting the workforce.
Despite the daunting challenges facing L.A.’s restaurant industry, those in the sector remain resilient and hopeful for a turnaround. Citrin, who has been in the restaurant business for over 25 years, believes in an eventual recovery. Marin echoed similar sentiments, stating, “We’re at the bottom of a cycle. It will go back up. At some point.”
As the landscape continues to shift, the future remains uncertain for restaurants, but operators hold onto the hope that change is on the horizon.
image source from：hollywoodreporter
