New Report Says Nearly HALF of Iowa Restaurants Aren’t Profitable

Restaurant openings are a thing to be celebrated. The road to having a successful establishment is full of potholes. That is why, unfortunately, so many local restaurants simply can't make it. But the number of Iowa restaurants not even making a profit is a bit shocking.

Iowa Restaurant Association Releases New Report

KCCI reports that according to data from the Iowa Restaurant Association, a staggering 48% of restaurants in Iowa are not profitable. That's right. Nearly HALF of all restaurants in the state aren't making any money. At best, they might be breaking even. Iowa Restaurant Association officials stated that Iowans will "be surprised by who chooses to close when some of these restaurants close."

The Challenges Iowa Restaurants Are Facing

KCCI reports that the restaurant landscape has been difficult since the pandemic, especially for smaller operators. Along with market and economic conditions, credit card fees are also a killer, often surpassing the rent a restaurant might pay. KCCI also reports that 8% of Americans are now taking weight loss drugs, a number that is expected to rise to 30% by 2030.

Many Younger People Are Staying Home

I love supporting great local restaurants in Eastern Iowa. But for my family of five to dine out, it can get expensive! And KCCI reports that young people are often staying in. 45% of Generation Z say they'd rather stay in on weekends than go out.