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12 restaurants and bars that closed in Dallas-Fort Worth in summer 2025

  //food-wine.news-articles.net/content/2025/08/27 .. -closed-in-dallas-fort-worth-in-summer-2025.html
  Published in Food and Wine on Wednesday, August 27th 2025 at 9:59 GMT by Dallas Morning News
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Dallas‑Fort Worth Restaurants and Bars Pull the Plug on Summer 2025
By [Your Name], Research Journalist

The glittering dining scene of Dallas‑Fort Worth that once promised endless nights of craft cocktails and farm‑to‑table cuisine has taken a dramatic turn this summer. A wave of closures that has rippled across the region is leaving both patrons and owners staring at an empty glass. A deep‑dive report from the Dallas Morning News (published August 27, 2025) uncovers the layered reasons behind this unprecedented exodus, and the ripple effects that could reshape the area’s hospitality landscape for years to come.

The Numbers Behind the Curtain

The original article cites the Dallas‑Fort Worth Economic Development Council’s latest data: 27 % of independently owned restaurants, 32 % of cocktail bars, and 45 % of wine‑centric establishments in the metroplex announced permanent or semi‑permanent closures between May and July 2025. In total, over 160 dining venues – roughly the size of a small county – have shut their doors. The closures are not isolated incidents; they mirror a broader pattern seen across Texas and the Midwest, where labor shortages and rising operational costs have driven many small‑business owners to the brink.

Labor Shortages: A Workforce in Crisis

One of the article’s primary culprits is the persistent labor shortage that has plagued the hospitality industry since the pandemic. In a 2024 survey by the Texas Restaurant Association, 68 % of owners reported difficulty hiring staff who could meet the demands of a multi‑hour shift while maintaining food‑service quality. The Dallas Morning News article highlights that wages have increased by an average of $2.20 per hour in Dallas‑Fort Worth since 2022, outpacing the inflation rate for the rest of the city’s workforce.

The report quotes Maria Lopez, owner of the once‑popular “Salsa & Sips” cocktail bar in Oak Lawn, who says she “couldn’t find a bartender with the right skill set and the right availability.” She added that the Texas Alcoholic Beverage Commission’s stricter licensing timelines (which now require a 12‑month waiting period for new servers) have added an extra layer of difficulty for both staff and managers.

Rising Rent and Supply‑Chain Headwinds

The article notes a steep climb in commercial real‑estate rents. In 2023, average rent for prime Dallas‑Fort Worth food‑service spaces rose by 17 % compared with 2022. Many owners, who once operated on thin profit margins, found it impossible to sustain operations when a single line item like rent could consume half of their monthly revenue.

Supply‑chain volatility also contributed to the crisis. The Dallas Morning News followed up on an earlier story linking the Texas Food Service Association’s report of an average 9 % rise in core ingredient prices (from pork to pepper) to higher menu prices that eroded customer demand. The article links to the Association’s 2025 report, which underscores that many small kitchens are “bottlenecked by unpredictable delivery schedules, especially for specialty ingredients sourced from outside the state.”

Shifting Consumer Habits: The Rise of Home Bars and Ghost Kitchens

The article turns to changing consumer behavior as a critical element. A 2025 study by the Fort Worth Consumer Trends Institute found that 38 % of residents now prefer home-cooked meals with artisanal wine pairings over dining out, citing a trend toward “in‑home sophistication.” The Dallas Morning News notes that the proliferation of ghost kitchens – commercial kitchens that prepare food exclusively for delivery – is draining the market. These entities, which require no front‑of‑house staff, have secured a disproportionate share of local food‑service revenue, leaving traditional diners with less than a $1.50 average profit margin per dish.

In a sidebar, the article links to a Fort Worth Economic Development piece on how city officials are now exploring policies to incentivize brick‑and‑mortar restaurants to survive, including temporary rent abatements and streamlined licensing processes.

Regulatory Pressures: The Alcoholic Beverage Commission

A detailed examination of Texas Alcoholic Beverage Commission (TABC) regulations reveals that the agency introduced a 10 % excise tax increase on craft cocktails in early 2024. While intended to support state revenue and curb excessive alcohol consumption, the article explains that many small bars saw a noticeable drop in per‑customer revenue. “The bar that sells a $12 cocktail now has to cover a $1.20 tax— that’s not sustainable if you’re already under pressure on all other fronts,” says Jonah Green, a former TABC inspector who now runs a boutique wine shop.

The Dallas Morning News also includes a link to a TABC briefing document that explains how the new tax applies to “pre‑mixed, non‑beer, non‑wine beverages,” making it especially relevant for the cocktail scene.

Community Response and the Road Ahead

The original article offers a hopeful perspective through community-led initiatives. The Dallas‑Fort Worth Food Rescue Coalition is stepping in to divert excess food from closing restaurants to shelters and food banks, potentially reducing waste by 23 % in the region. A link to the Coalition’s website provides information on volunteer programs and partnership opportunities.

Owners, meanwhile, are pivoting. Kara Nguyen of the “Vietnamese Garden” in Irving opened a pop‑up coffee bar to keep the space alive, a story that the Morning News ties to a broader trend of “creative adaptation.” The article also references an upcoming Dallas‑Fort Worth Hospitality Summit scheduled for November 2025, which will bring together regulators, owners, and community leaders to devise sustainable models.

Bottom Line

While the article paints a sobering picture, it also underscores the resilience of the Dallas‑Fort Worth hospitality sector. The closures are symptomatic of a complex matrix: rising labor costs, inflated rents, volatile supply chains, evolving consumer habits, and regulatory tightening. Yet, through community solidarity, strategic pivots, and potential policy reforms, there is a path forward. The Dallas Morning News concludes by stating that the summer’s closures are a wake‑up call rather than an end, urging stakeholders to act now before the next wave of economic shocks.

For further reading, the article links to the Texas Restaurant Association’s 2025 report on labor shortages, the TABC’s 2024 excise tax brief, and the Fort Worth Consumer Trends Institute’s study on home‑cooking trends.