News Summary
The restaurant industry in Los Angeles is struggling as rising operational costs and decreased patronage lead to numerous closures, including notable establishments and historic landmarks. Factors such as shifting dining habits amid tourist downturns and economic pressures stemming from political decisions have contributed to a concerning decline in business. Despite these challenges, some owners remain hopeful for a recovery and are exploring ways to adapt their business models to navigate these trying times.
Los Angeles is facing a critical crisis in its restaurant industry as numerous establishments shut their doors due to rising operational costs and dwindling patronage. Notable closures include high-profile restaurants such as Curtis Stone’s Gwen, Ricardo Zarate’s Rosaline, and Michael Mina’s Mother Tongue. The situation is further highlighted by the closure of Cole’s, a historic landmark known for inventing the French dip sandwich, which has served diners since 1908.
Data from OpenTable indicates a concerning 5% drop in patronage at dining establishments within the Los Angeles metro area during the first eight months of 2025 compared to the previous year. This decline has left many restaurant operators scrambling to adapt as they confront a multifaceted crisis affecting their businesses.
Several factors contribute to the struggles facing L.A. restaurants. The emergence of GLP-1 weight loss drugs has notably reduced diners’ appetites, while a declining interest in alcohol consumption among Gen Z has affected average check sizes. Additionally, a downturn in tourism stemming from political decisions—such as President Trump’s tariff wars impacting visitors from Europe and Asia, particularly Canadians—has further exacerbated the situation.
The impact of the 2023 writers and actors strikes in Hollywood was profound, creating a ripple effect that diminished the number of patrons dining out. Following the strikes, corporate layoffs and an exodus of production activities contributed to a significant decrease in customers for local restaurants. The popularity of streaming services has also changed dining habits, with many opting for takeout instead of dining out.
Ongoing challenges, including wildfires, immigration raids, rising crime rates, and a homelessness crisis, have heightened public fears about safety while dining. This has led to a marked reduction in foot traffic to restaurants across the city. Furthermore, restaurateurs cite rising ingredient prices, unexpected repair costs, and increasing insurance premiums as major financial burdens.
Compounding these difficulties, the minimum wage in Los Angeles has nearly doubled over the past decade, now standing at $19.65 per hour. This has placed additional stress on small businesses, many of which already operate on profit margins of just 5% to 10%. As costs continue to escalate alongside sales declines, the economic viability of many establishments is jeopardized.
A series of significant closures occurred in September 2025, demonstrating the harsh realities facing the culinary landscape. Restaurants such as Norma in West Hollywood and Carla’s Fresh Market in Highland Park both closed after less than two years, citing economic issues and industry downturns. Del Frisco’s Double Eagle Steakhouse also closed its Westfield Century City location, and after 18 years, Michael’s on Naples in Long Beach has shuttered. Additionally, Tokyo Fried Chicken and LA Cha Cha Chá in downtown have closed due to reduced customer turnout stemming from ICE raids and ongoing protests.
Despite these alarming trends, many remaining restaurant owners hold onto a sense of hope for a future recovery, expressing optimism that the challenging climate can improve over time. Efforts to adapt and pivot business models could provide the necessary resilience to navigate this turbulent period.
The restaurant industry, once a thriving cornerstone of Los Angeles culture, now grapples with unprecedented challenges. If these external pressures can be addressed, there remains the potential for a revitalization of the city’s beloved dining scene.
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Additional Resources
- Eater: L.A. Restaurant and Bar Closings September 2025
- The New York Times: Los Angeles Restaurants Closures
- KTLA: Dozens of L.A. County Restaurants Shut Down
- Los Angeles Times: Downtown Restaurant Closures
- Eat This: Los Angeles Restaurants Closing Fast
- Wikipedia: Restaurant
- Google Search: Los Angeles Restaurant Industry Crisis
- Google Scholar: Los Angeles Restaurant Closures 2025
- Encyclopedia Britannica: Restaurant Industry
- Google News: Los Angeles Restaurant Closures
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
