A leader in Iowa’s hospitality industry says most Iowa restaurants, bars and pubs are struggling financially and up to 600 may close this year. Iowa Restaurant Association president and CEO Jessica Dunker says the price of food and labor costs are exceptionally high, and raising menu prices any higher could drive away customers.
The association’s 2024 survey of Iowa restaurants found half were not profitable and while about 17% of US restaurants close in their first year, Dunker says there’s another trend she’s watching.
Dunker says there’s another troubling trend nationally. About a third of Americans say they’ve cut back on eating out, getting food from a drive through or ordering take out. Iowa has nearly 6,500 eating and drinking establishments that employ over 147,000 people.
