Why Los Angeles restaurants say they’re struggling to survive in 2026

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LA restaurants say they’re struggling to survive in 2026

West Los Angeles restaurant owners say rising food costs, tariffs and regulations are making it harder to stay in business.

Walking into Mary and Robb's Westwood Café, Rana Pourarab greets every customer warmly. But behind the counter, she's quietly absorbing costs that keep climbing.

"Everything is expensive," she said. "It's not easy to go out and eat anymore."

She's not just talking about her customers. She's talking about herself.

A case of tomatoes that used to cost a fraction of the price now runs $110. Lemons, the kind restaurants drop in your water glass without a second thought, jumped from $25 a case to $80.

"You don't believe it," she said.

This past Mother's Day, Pourarab watched a family of four sit down for dinner. The parents didn't order. Only the kids ate.

"I feel so bad," she said. "It's Mother's Day, and the mother didn't eat."

Pourarab's husband, Roozbeh Farahanipour, is the CEO of the West LA Chamber of Commerce and owner of Delphi Greek Restaurant on Persian Square, just down the street. He says the crisis is impossible to ignore.

"In Westwood, we are seeing more than 20 small businesses close recently," he said. "Citywide, way more than that."

Farahanipour blames a weak economy, high tariffs, heavy regulations and a city policy that allows street vendors to operate directly in front of brick-and-mortar restaurants.

"Unfair competition," he said. "They get a waiver from the state. The state allows them to do that."

He says some menu items are now sold at a loss just to keep the lights on and the staff employed.

"Some of the items give us zero margin, some a tiny margin," he said. "The margin is not like before."

Analytics firm Black Box Intelligence, which tracks more than 120,000 restaurant locations nationwide, found that 9% of all full-service restaurants are now at serious risk of closing in 2026.

In Los Angeles, the closures are already visible. Cole's French Dip, open for 118 years, has shut its doors. Taix French Restaurant in Echo Park is gone. FAT Brands, the Beverly Hills company behind Fatburger and Johnny Rockets, filed for Chapter 11 bankruptcy, carrying more than a billion dollars in debt.

Farahanipour and Pourarab are urging voters to support candidates who back small businesses. But Farahanipour says the community can't afford to wait for government to act.

"The people in the community need to realize — if they are not supporting their beloved restaurants or their hospitality businesses, they're gonna be gone sooner than they believe."

For restaurant owners on the brink, some relief is available. The nonprofit Restaurants Care is planning a new round of grants this summer. Those interested can click here for more information.

Los AngelesEconomyTariffsFood and DrinkWestwoodWest Los Angeles