SAN DIEGO (KGTV) — San Diego's food and beverage industry is facing unprecedented challenges as longtime establishments close their doors and survivors scramble to adapt their business models to stay afloat.
Kilowatt Brewing in Kearny Mesa has shifted gears, adding cocktails and food to its menu to attract customers as breweries and restaurants across the county struggle to make a profit. Fewer people are going out to get a drink or grab a bite to eat.
"The days of people just coming in to drink a beer are kind of gone," said Esthela Davila with the San Diego Brewers Guild.
Even long-standing breweries are being impacted, with several recently closing, including Harland Brewing in One Paseo, Ballast Point in Miramar, and Black Plague Brewing.
"These are people we've known for years, and to see them being all of a sudden without a business, without a job, having to support their families, it's really difficult," Davila said.
Davila said breweries are hurting over the increased price of goods, costly leases, and COVID-era debt.
"Last month was really tough, especially in San Diego. Unfortunately, with prices rising, it's affecting everything," Davila said.
Those costs are eating away at popular restaurants, shutting down Flap Your Jacks in North Park, Miguel's in 4S Ranch, and Barrio Star in Bankers Hill, all in the last month.
"What's startling is the restaurants that have been in business for years are closing down," said Sarah Mattinson, president of the San Diego chapter of the California Restaurant Association.
"I think in the next couple months with the uncertainty of tariffs and rising costs, we might see some more," Mattinson said.
Mattinson said owners are grappling with costs of labor and new restaurant regulations.
"When you're running a 3-5% profit margin you're like is it worth all these headaches?" Mattinson said.
Both Mattinson and Davila expect the situation to get worse unless San Diego's oldest businesses can try new strategies like expanding their menu or adding trivia nights to bring in customers.
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