Restaurant closures surged in 2025: See which ones and where

It takes a bold person (or an unprepared one) to enter the restaurant industry.

Many people throw around the false statistic that “90% of restaurants fail in the first year.” It's not that bad, but the reality isn't great and shows how challenging the industry is.

“If you’ve ever wondered how many restaurants fail in their first year, a UC Berkeley study found that only 17% do — far from the myth of 90%,” reported Menu Tiger, a digital menu software provider.

“The National Restaurant Association (NRA) revealed that the U.S. restaurant industry’s average failure rate is 30% — a bit higher than UC Berkeley’s research findings,” added Menu Tiger.

The numbers are big squishy because there's no real standard for reporting this data. Still, opening and operating has always been challenging, and costs have been increasing across the board for operators.

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Many local restaurants face a dilemma, which the NRA spells out below.

“For many restaurants, customer traffic is still dampened compared to pre-pandemic levels. That means the only way they can cover their rising costs is to increase menu prices. To cover the higher input costs, the average restaurant would need to increase prices 23.8%. However, that would only mean breaking even, with no profitability,” the trade association shared.

Why are restaurants closing in 2025?

Rising food costs, staffing shortages, rent hikes, and reduced post-pandemic foot traffic have created unsustainable conditions for many operators.

Which notable restaurants closed in 2025?

Closures include Osito in San Francisco, Guerrilla Tacos in LA, Blanca in Brooklyn, and Mama Dip’s Kitchen in Chapel Hill.

Are Michelin-starred restaurants closing in 2025?

Yes. At least two Michelin-starred restaurants — Osito and Blanca — have closed in 2025 due to financial and lease-related pressures.

Restaurants of all types have been closing.

Image source: Pixabay

Some restaurants just run their course

Mama Dip's Kitchen has been a North Carolina staple since its founder, Mildred Council, opened it nearly 50 years ago. The eatery closed down its dining room last year and has been operating as a takeout and events caterer since then.

Now, the Council family has announced the restaurant would close entirely.

In this case, the family shared a message on Facebook:

Since 1976, we’ve had the joy of feeding Chapel Hill with love, soul, and Mama Dip’s dump cooking goodness. From family dinners to first tastes, we are HONORED to have been a part of your stories.

Our doors at 408 W Rosemary are now closed. And for nearly 50 years of Mama Dip’s Kitchen, we have to say THANK YOU for everything that you have helped us accomplish — it’s been a ride beyond our wildest dreams!

This chapter at Mama Dip’s Kitchen has concluded. But the brand will stay alive and we are working to see what is next for us. And we can not wait to share it with y’all!

Mama Dip's still has an online store selling some of Mildred Council's famous items.

More Restaurants

Another restaurant with deep history, Lurcat in Minneapolis, also closed in July.

“If you think about Lurcat, you know, that's 23 years. That's the D'Amico brothers, you know, who don't even really live here anymore; they live in Florida,” according to Stephanie March, editor-at-large of Mpls.St.Paul Magazine.

That same area has also lost multiple other restaurants:

Sun Street Breads, which opted to not renew its lease.
Edina Grill, which saw its owner pass away.
Young Joni in northeast Minneapolis has also closed.

Notable restaurant closures in 2025

Los Angeles:

Guerrilla Tacos (Arts District): The pioneering modern Mexican concept by chef Wes Avila closed on January 31, 2025, after 13 years of operation.
MXO West Hollywood: Avila’s upscale Mexican steakhouse (opened September 2024) was officially confirmed to close on July 21, 2025.

Seattle / Pacific Northwest:

Harbor City Restaurant: This local dim sum institution since 1988 closed permanently on February 28, 2025.
Plum Bistro: The flagship vegan restaurant and its sister Plum Chopped both closed in January 2025.
Masala Lab PDX: This modern Indian fusion concept closed on January 26, 2025.
Rams Head Pub: McMenamins pub‑restaurant closed in June 2025 after 35 years in business.

New York City / Brooklyn:

Blanca: The two‑Michelin‑star fine‑dining restaurant in Brooklyn closed on April 12, 2025, after the landlord declined to renew its lease.

San Francisco / Bay Area

Osito: The Michelin‑starred live‑fire restaurant closed May 11, 2025, citing unsustainable costs.
Lord Stanley: This celebrated California bistro shut down May 31, 2025.
Teta Nahla: The Arab soul‑food spot closed May 9, 2025, due to staffing challenges and shifting priorities toward catering.
Other Bay Area closures in early 2025: Sweet July, Jeanne d’Arc, The Market, and more, driven by safety issues, rent, and declining traffic.

Houston:

Lola Diner: A neighborhood staple for 18 years closed unexpectedly in February 2025.
Money Cat: The Japanese concept closed on February 1, 2025, citing economic pressures and inability to find traction.
Artisans Restaurant: This French fine‑dining institution of 14+ years closed on May 29, 2025.

Dallas:

Hugo’s Invitados: A well‑regarded Mexican venue closed abruptly in mid‑May 2025 amid lease negotiations.
Meddlesome Moth: The beloved gastropub ended a 15-year run on May 15, 2025.
Hong Kong Restaurant: Dallas’ longest-serving Chinese restaurant shut down in May 2025 after more than 60 years operating.

Denver:

Benzina: The Neapolitan‑style pizzeria closed May 31, 2025, with the owner planning a new concept at the same location.
Burns Family Artisan Ales: This brewery and taproom closed May 31, 2025, due to low foot traffic.
Farm & Market: A hydroponic‑focused restaurant and market concept closed May 31, 2025, due to financial unviability.

New Orleans:

Palace Café: Closed in July 2025 amid a legal lease dispute resulting in huge proposed rent hikes.
Yo Nashi: The acclaimed omakase spot closed July 19, 2025, as the owner stepped away to focus on family.
Ancora: This wood-fired pizza restaurant closed July 31, 2025, unable to adapt to delivery‑centric trends.
Rosella: A cozy wine bar/snack spot closed July 27, 2025, less than two years after opening.