Five Chicago Restaurants and Bars Close
Five restaurants and bars in Chicago have recently closed. The closures reflect persistent challenges within the local hospitality sector, including rising operational costs and shifts in consumer habits. This trend can impact the vibrancy and appeal of surrounding residential neighborhoods.
- Operating costs for Chicago's hospitality sector are creating a profitability challenge, with labor costs climbing roughly 30% over the last five years and energy expenses rising 10% to 15% from 2024 to 2025. - A recent wave of closures has significantly impacted Chicago's vegan dining scene, which was named the best in the US by PETA in June 2025. Among the recent closures are prominent plant-based restaurants like The Chicago Diner's Logan Square location, Native Foods, and Kitchen 17. - Bloom Plant Based Kitchen is another restaurant that has closed, with its last day of service scheduled for February 21, 2026. - The financial strain is not new, as 496 restaurants in the city closed in the first half of 2025 alone. - The challenges extend beyond restaurants to the broader hospitality industry, with Chicago ranking 29th out of 33 major U.S. hotel markets for profitability. - Factors contributing to the difficult environment include a post-pandemic shift in work patterns, leading to reduced weekday lunch crowds that some establishments, like Native Foods, relied on. - National chains are also affected, with brands like Peet's Coffee, Denny's, and Houlihan's closing locations in 2026 due to financial difficulties and market adjustments. - The Alinea Group, a high-profile restaurant operator, closed two of its concepts in 2025, Fire and St. Clair Supper Club, at the end of their lease, citing a desire for a larger space to meet demand.
