Why are so many Sacramento-area restaurants closing? Here’s what business owners say

As new businesses plant roots across the Sacramento area, long-standing local restaurants are struggling to keep the lights on.

A handful of Sacramento-area eateries have closed permanently in recent months or announced they’re shutting their doors, including Zest Kitchen in Rocklin and J. Wild’s in Folsom.

That’s caused people to wonder if it’s bad timing — or if the shutdowns reflect a nationwide trend in the food industry.

According to a 2024 study by popular review site Yelp, restaurant openings have slowed by 4% over the past year as the industry grappled with ongoing staff shortages, and inflated labor and supply costs, and changes in customer expectations.

Why are so many local restaurants closing?

The Sacramento Bee reached out to the owners of a few of the restaurants that recently announced closures in the Sacramento area, from a longtime burger spot to a popular brunch destination, to find out.

Why did Dad’s Kitchen close in Land Park?

Beloved burger restaurant Dad’s Kitchen closed its doors in July at 2968 Freeport Blvd. in Sacramento’s Land Park neighborhood after a 14-year run.

A second location in Fair Oaks’ Sunset Oaks Plaza remains open at 8928 Sunset Ave.

In an interview with The Bee, former Dad’s Kitchen owner Julio Peix called the news of the closure “sad.”

Peix took over Dad’s Kitchen in April 2010, and Christine Collins came aboard as his business partner a few years later. The two eventually expanded the business to Fair Oaks.

Peix said his relationship with Collins became contentious fairly quickly, pushing him to leave the business. In 2018, Collins took over both Dad’s Kitchen locations.

Peix eventually opened Lefty’s Taproom in East Sacramento in 2020, specializing in beer and burgers.

“It’s sad that (Dad’s Kitchen) closed,” Peix said, claiming that the business wasn’t managed appropriately under Collins’ management.

A Bee reporter reached out to Collins for comment multiple times, but she had not responded as of Thursday afternoon.

When did Rio City Cafe shut its doors in Old Sacramento?

Rio City Cafe in Old Sacramento served customers for the last time on Aug. 3 after failing to reach a last-minute agreement with the city that could have kept the restaurant at 1110 Front St. open.

City officials closed the property’s riverfront deck in April with no anticipated reopening date, restaurant representatives said, resulting in an estimated 70% dip in revenue.

Rio City Cafe general manager Jimmy Gayaldo told The Bee via phone that the city also closed the restaurant’s outdoor cocktail area in 2019 with a promise to fix it.

That hasn’t happened, he said July 31.

“(City officials) have been promising us that us that they’ll fix our desks since 2019 and they have never followed through,” said Gayaldo, who doubles as co-owner of Rio City Cafe.

City spokeswoman Gabby Miller declined to comment on the specifics of Rio City Cafe’s lease agreement with the city.

She forwarded a July 30 statement from Sacramento Mayor Darrell Steinberg stating that the deck built by the city 30 years ago has “reached the end of its useful life.”

“Owners Mark and Stephanie Miller ... need immediate access to a deck that the city’s structural engineers have determined is unsafe,” Steinberg said.

It would take at least $1.5 million and six months to repair part of the deck temporarily, he said, adding that fully fixing the deck would cost “close to $5 million.”

Rather than repairing the deck, Steinberg said, city officials advised “soliciting proposals from potential tenants for the Rio City site” to “generate the most revenue.”

“Had the Millers decided to keep Rio City open, they could have submitted their own proposal for the site,” he said.

Gayaldo said the restaurant’s lease stated that the city was responsible for the outside of the property, including the deck.

Rio City Cafe served brunch, dinner and craft cocktails.

What made Rocklin vegan restaurant announce closure, sale?

Zest Kitchen in Rocklin will undergo a major transition in August after roughly 13 years in business.

Owner Angelique Miller announced Friday via social media that her restaurant at 2620 Sunset Blvd., Suite No. 1, will serve its customers for the last time on Aug. 28, noting the decision to close was something she “never saw coming.”

In a video message to her nearly 5,000 Facebook followers on Friday, Miller said Zest Kitchen’s lease ended and the current landlord has requested that the restaurant move out.

“I think a majority of the closings (of local restaurants) are due to economy-related issues,” Miller told The Bee via phone on Tuesday, but that wasn’t the case with Zest Kitchen.

She said the restaurant still enjoys a “strong, loyal following.”

Miller, who founded Zest Kitchen in July 2011, is selling the restaurant and its more than 170 recipes.

The restaurant specializes in vegan cuisine, from chickpea tacos and mushroom burgers to veggie wraps and tomato sandwiches.

“I’m ready to pursue other interests and rest,” Miller said, adding that buying Zest Kitchen could be an “amazing opportunity for someone out there” willing to take the leap.

What happened to midtown Korean restaurant? Folsom barbecue joint?

Rising inflation and elevated business costs forced modern Korean restaurant Seoul St. Midtown to close its doors in June after nearly two years in business, The Bee previously reported.

Owners Minnie Nguyen and Trinh Le opened the eatery, which served crispy finger foods including potstickers, calamari and kimchi buffalo wings, at 1521 L St. in September 2022.

However, an initial wave of popularity couldn’t keep the business afloat, The Bee reported.

“This decision was not made lightly, and it comes after careful consideration and numerous attempts to navigate the challenges we have faced,” restaurant representatives wrote on Seoul St. Midtown’s website. “Unfortunately, (due to the) economic downturn, we are no longer able to sustain our operations.”

Financial challenges also plagued J. Wild’s in Folsom, which will close its doors after a “day-to-day fight to stay open,” restaurant owners said via social media.

The Folsom barbecue joint, known for its weekly trivia nights and Taco Tuesday events, announced Monday it will cut the lights in the coming weeks.

In a farewell message to customers, restaurant owners Sammy and James Youmans spoke about running a business in an economy where “costs only continue to rise thanks to both legislative changes and general inflation.”

“We have no more to give of ourselves after sacrificing so much of our time and all of our resources, to J Wild’s, our wonderful staff, and you, our guests,” the couple wrote.

The duo said their lack of time for family solidified their decision to close the restaurant at 614 Sutter St.

As of Tuesday, the eatery had not announced an official closing date.

Marketed as the “best smelling restaurant in Folsom,” J. Wild’s specializes in smoked meats, burgers and alcoholic drinks, according to its social media.