Tuesday, January 6, 2026
-Bill Crane-
With the cold and flu season in full force, it seems hard to believe that the start of the global Covid pandemic is now more than five years in the rear view. The pandemic impacted economies the world over, and most every industry sustained injury, though certainly some more than others. Among the most impacted, and still struggling for recovery are the restaurant/dining and hospitality sectors.
The shutdown here in the U.S. was not uniform, but most every major urban and rural market experienced business losses, with again the hospitality sector being disproportionately impacted. The failure rate, under normal conditions, for a new restaurant is typically well above 50 percent in the first year. Add atop those many months with no customers or income, while regular expenses such as leases and equipment rental, utilities and facility maintenance all fully continued.
Even legacy fast casual and sit down dining pubs, bars and restaurants remain in recovery mode. Coming out of the pandemic, the sector’s labor force did not fully return. In addition to wage pressure from the outside to pay a ‘living wage’ on top of hourly minimum wage and tip income from customers, this hard pressure came when earnings were soft and profits were vanishing. Many younger workers, who had become accustomed to working from home, subsequently refused to consider a work environment with long hours, hard labor and comparatively low pay. Continuing inflation has pushed up property rents and utilities, also forcing hikes in menu prices, which again caused some pause among restaurant customers. Fewer diners made it INTO dining rooms, as home delivery services flourished.
As a former hospitality industry worker, I knew at the onset that many of my favorite staple locations and restaurants would need customer support and regulars yesterday, as well as going forward to remain in business. That first week of the shutdown, I drove to four of my favorites and purchased gift cards of $100-200 each. There was of course no guarantee that each of those locations would stay in operation, but I knew that chances were better if they retained some cash flow. I also pre-tipped some of my favorite wait staff, with both gift cards and cash, as their own employment and income was also about to be paused.
And yet, as wage pressures and other costs have continued to rise, I am mystified each time I see hostile/critical or dazed/confused posts on social media, lamenting the closure of another dining establishment. In metro Atlanta several closures within the Ponce Market Food Hall, on Atlanta’s trendy westside and in popular suburban and intown markets like Atlantic Station, Avalon and Decatur have commanded headlines and attention. And the longer in business the lost establishment, the greater moan, despite some obvious and illogical prior choices by the groaners.
Athens, Georgia in reasonably short order lost its legendary Varsity, soon followed by the multi-generation family ‘meat n’ three’ Mayflower as well as multiple longtime watering holes in Normaltown. As I hear neighbors and influencers complaining about the lack of a ‘Cheesecake Factory’ on the southside, I have to remind them… The Cheesecake Factory in the heart of Buckhead also closed.
At times, ancillary issues overly impacted locations and markets. The ever trendy Virginia-Highlands Atlanta submarket lost the original Taco Mac, as did downtown Decatur. In addition to new owners seemingly having lost a bit of their zest and focus, tight parking and an aging/small kitchen contributed to the decision that costs far outweighed profits, with the tariffs of 2025 impacting the costs of most fresh food products adding insult to injury.
I am happy to say that all of my four favorites remain in business. Though nostalgia and fond memories don’t fuel cash registers. Grub Hub, DoorDash and the like are convenient for consumers, but not only leave wait staff hanging dry, and without the beverages (soft drinks, coffee/tea or an adult libation), the restaurant loses sales on its most profitable menu items. That glass of ice water still has to be washed and ice generated and frozen, so please note every table with ice water as a loss leader for every establishment. It’s expected, but never free to the restaurant, nor declining in costs.
Trendy dining halls seem to be suffering the transition from malls to online shopping. Lookie loos, walking and talking may make an establishment look trendy, but that long and lingering cup of coffee, while enjoying atmosphere and free wi-fi, is again a drain on resources and typically again, little to no tip income for the wait staff.
It is very simple really. IF you want successful and long-standing restaurants in your community, at least once or twice a week, try to go OUT to eat. Yes that is easier if you are single, more affluent or have a smaller family, even fast food meals have considerably increased in price (see earlier paragraphs about labor and materials and lease/facility cost increases). Prior to the pandemic, you might never actually see a McDonald’s or Waffle House location close. Within five miles of my home, there have been four of the former and two of the latter, and I live about a mile from Waffle House #1 and #1000, that concept and chain is here to stay, but not every store.
This is actually one of those rare situations where the choices of every household matter. Make eating out a treat, but reward yourself, as well as your favorites on a regular and ongoing basis. Recommend your watering holes and favored staff to friends and neighbors. Clipping and using coupons is fine, but try and make up for that with dining frequency and bringing along others, and even dividing up the check. Five checks on a 10-top may be a pain, but that is likely ten more entrees with beverages that night for the house. Post notes or photos of an enjoyable evening on social media, or fill out a Yahoo or Google review. Those dining establishments will notice and appreciate you giving them that free support and exposure.
And especially if you had solid meal service and your courses timed out as they should, and the staff didn’t hover too much… tip well. If for no other reason, the staff will remember you as well as the kharma of taking care of those who routinely take care of others is off the charts. Check please. Bon Appetit!
