SPOKANE, Wash — At Juli Norris's new restaurant, Loren, it's light before the evening's action.
“I’ll turn on this Christmas tree," she says as the reception desk decor comes alive.
The long-time Spokane restaurant entrepreneur is preparing for another night at the five-week old eatery, which lies in the basement of the Papillion Building under her other venture, Kasa Taphouse.
Though the excitement is tempered by her fellow entrepreneurs who have closed shop for good.
"This is definitely not normal for this industry," she said.
Norris says restaurants especially feel the pressures of economic downturns, which may be a leading reason a number of Spokane restaurants have closed over the last month.
Washington's Hospitality Association says on average, 18% of the state's restaurants close every year. Of course, a number of new ones pop up to replace them in an industry with a lot of ups and downs. But with around 14 closures in downtown Spokane alone this quarter, says president Anthony Anton, many people are wondering what's going on.
"Roughly 580 restaurants in the city of Spokane, so 18% that number in your average year is still quite a few people who couldn’t make it in a tough industry," Anton said. "How much worse it gets is what we’re going to see as the numbers come out later.”
Anton says right now it's too early to know how dire the situation may be or whether it's just an odd moment in time.
“I will say to close in November is a little bit weird. Because for the most part holiday season’s where you make your money," he said.
A better picture will likely become clear when complete data on the state's restaurant industry outlook comes out in January. Anton says what we do know right now is there are several headwinds facing the entire industry.
One big factor is higher prices for everything, which keeps people from eating out and keeps businesses from breaking even.
"Everyone’s food costs are way up, everyone’s labor costs are way up," Norris said.
““If you compare to 2019 and you may say hey, Spokane sales are up, restaurant sales in the City of Spokane are up 11%, times must be better. But when you take into inflation being closer to 20%, their sales are not keeping up with inflation," Anton added.
Another possible factor, though Anton again warns it's too soon to tell how much it may play into Spokane's closures, is post-COVID debt. The hospitality association reports 40% of the state's restaurants didn't get pandemic relief.
“If you’re the average restaurant with $160,000 in debt coming out of the pandemic, but you’re only making $40,000 a year on your restaurant because your margins small, you’re facing three to four years with no income," he said.
"In January we have another minimum wage increase, just another reason it’s detrimental to restaurants," Norris said.
Several of the most recent restaurants to shutter have been centralized in downtown or nearby Kendall Yards, like BRGR House, 3 Ninjas, Suki Yaki Inn and Red Lion Pub. Of course, some reasons for closing down are more personal; the owner of Suki Yaki is retiring after several decades.
Norris guesses there may be an issue unique to that area that's also taking a bigger toll: crime.
"If people don’t feel safe, they’re not going to go downtown to celebrate or spend money," she said. "It’s too bad.”
She says the best thing people can do right now is support local, even with their own tighter budgets. Restaurant gift cards can make a great gift, but also planning a holiday party at a small restaurant or opting to eat local over a chain can make a difference, Norris said.
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