Restaurants across the U.S. have had a really tough run since 2020.
When the pandemic hit U.S. soil, stay-at-home orders forced diners to skip out on in-person dining and limit themselves to delivery and takeout.
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Some casual eateries were able to pivot. And for some chains, the shift was actually a welcome one. Many pizzerias, for example, made a killing.
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That shift was harder to bear for sit-down restaurants. And many closed their doors permanently following the events of 2020.
But even those that managed to survive the pandemic had a hard time staying afloat in the years that followed.
Inflation started ticking upward in 2021 as supply chain slowdowns coincided with generous stimulus policies. That squeezed restaurants that were, at that point, barely hanging on.
Inflation peaked in 2022 and has cooled reasonably since then. But for many restaurants, the damage was just too much to overcome.
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Restaurants have been struggling to hang on
Dining establishments commonly operate with very tight margins. Rising costs have been particularly problematic in recent years, as there’s only so much that can be passed along to customers without backlash.
Over the past few years, a number of notable restaurant chains have been forced into bankruptcy, despite loyal followings.
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Red Lobster filed for bankruptcy in May of 2024, citing rising food and labor costs coupled with declining sales. Some say the chain’s endless shrimp promotion also helped do it in.
Mexican chain Rubio’s Coastal Grill filed for Chapter 11 bankruptcy shortly after Red Lobster in August of 2024. Rubio’s, too, struggled in the wake of higher costs.
And in November 2024, TGI Fridays filed for bankruptcy, citing a variety of factors that included lingering pandemic impacts and competition from newer players in the fast casual space.
Even restaurants that managed to avoid bankruptcy in recent years have been forced to reexamine their respective footprints and move forward with closures.
A favorite local restaurant is closing its doors for good
Mac’s Old House, an iconic San Francisco Bay Area restaurant, is shuttering after a successful 42-year run. Known for its famous prime rib and minestrone soup, Mac’s Old House was a local favorite due to its generous portions and affordable selection of cocktails.
“We have weathered recessions, a pandemic, and ever-changing times, and through it all, we have been fortunate to serve this community,” read Mac’s Old House’s April 4 closure announcement. “We could not have done it without our loyal customers and our dedicated staff. This little house has served well over three million meals, and we are grateful for each and every one of you.”
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While Mac’s Old House first opened its doors to customers in 1983, the building it’s housed in is 100 years old. Original owner Floyd “Mac” McKinney built the house in 1925 and converted part of it into a bar. Eventually, it was purchased by the current owner of Mac’s Old House, Gary Noe.
What made the restaurant unique was its authentic menu. Manager and head chef Rick Cook of Bertola’s fame embraced old-school Italian-style cooking and managed to bring recipes to life.
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Mac’s Old House will close its doors to diners on June 22. But that may not be the end of the storied location’s run. The property itself is up for sale and has already received a lot of interest.
“Everyone that we’ve talked to has an interest in keeping it operating as a restaurant,” said real estate agent Tatiana Guzman via email. “It’s very special to the community and it would be great for its legacy to continue on.”
