For decades, Delaware restaurants have been the beating heart of our communities—places where families gather, jobs are created, and entrepreneurs chase the American dream. But today, this industry is in crisis, facing an onslaught of economic pressures and regulatory burdens that threaten its survival.
Over the past five years, the challenges have piled up: skyrocketing food prices, rent hikes, increased fees, rising labor costs, and now, soaring energy bills. Restaurants use five to seven times more energy per square foot than most small businesses, making them particularly vulnerable to these cost spikes. Add to that the doubling of unemployment insurance rates, an ever-growing list of government mandates, and a weary, price-conscious consumer who is dining out less, we find ourselves in a perfect storm—one that is wiping out local restaurants at an alarming rate.
According to reporting from The News Journal, dozens of Delaware restaurants closed their doors in 2024 alone, and the list keeps growing. These aren’t just businesses; they are neighborhood staples, family legacies, and dreams that took years to build. Their closure represents more than lost dining options—it’s lost jobs, lost culture, and lost economic stability for hundreds of workers and families.
The restaurant industry has always operated on razor-thin margins. Now, as consumers tighten their own budgets in response to inflation and energy costs, the squeeze is becoming unbearable. Delaware lawmakers must recognize this reality, truly listen and take a different approach—one that prioritizes economic survival over well-intentioned but sometimes harmful policies.
Too often, we hear that proposed legislation is “good for business” but when layered on top of each other, these measures have proven catastrophic for small, family-owned operations. According to Family Enterprise USA, only 30% of family businesses survive to the second generation, and just 12% make it to the third. If we continue on this path, Delaware’s vibrant, independent restaurant scene will be nothing more than a memory.
The solution? A “do no harm” approach. In times of economic uncertainty, our elected officials must resist the urge to intervene with new costly mandates and regulations that tip struggling businesses over the edge. Instead of imposing additional burdens, lawmakers should focus on policies that provide relief, stability, and breathing room for the 53,000 Delawareans employed by this industry.
Supporting small businesses doesn’t always mean doing more. Sometimes, it means stepping back and allowing them the space to survive and thrive. Delaware’s restaurants need action—but in this case, the most impactful action may be restraint.
Carrie Leishman is the president and CEO of the Delaware Restaurant Association.
