Charleston, South Carolina has long been celebrated as a haven for food lovers, known for its mouthwatering cuisine and vibrant culinary scene. Unfortunately, even this treasured city isn’t immune to the challenges that many restaurants face. In the past month and a half alone, at least eight local bars and eateries have closed their doors for good, with some even shutting down before they could celebrate their first anniversary.
Among the most notable closings is Cru Café, a beloved establishment that served the Lowcountry for a remarkable 23 years. Owner John Zucker took to social media to share the sad news, saying, “Restaurants are living, breathing things. They thrive when they have the people to support them. And right now, the industry is in the middle of a storm that we just can’t fight anymore.” His words resonate as many others in the area face similar struggles.
The statistics surrounding restaurant longevity can be quite sobering. According to the National Restaurant Association, around 60% of restaurants fail within their first year, and nearly 80% close within five years. That’s a staggering number that reflects the reality of this challenging industry.
Jennifer Ferrebee and her husband have been in the restaurant business since they opened their first location of Verde on King Street in 2011. Over the years, they’ve witnessed a significant transformation in the local dining landscape. “We have seen every different retailer, restaurant, we’ve seen every changeover on King,” she recalls. “It’s such a different landscape.”
Ferrebee notes that they’ve faced their fair share of challenges, too, particularly rising costs associated with food and rent. In 2023, the couple made the tough decision to relocate from their flagship location on middle King Street to a smaller space on upper King Street due to shifting dining habits brought on by the pandemic. “When we opened on King in 2011, I think we had 50 seats in the dining room, and that would just be a silly waste of retail space now,” she explained.
The challenges of running a restaurant extend beyond menu choices and customer service. Will Sherrod, a retail broker in Charleston, highlighted how the low inventory of commercial spaces is further driving up rent prices. “Landlords don’t necessarily have to give a lot of incentives to get tenants in there because there’s not much space to compete with,” he noted. This reality can create an unwelcoming atmosphere for new or struggling businesses.
Another hurdle for restaurant and bar owners in South Carolina is the rising cost of liquor liability insurance. A law passed in 2017 requires businesses serving alcohol after 5 p.m. to carry at least $1 million in insurance. However, this regulation has led to skyrocketing rates for many establishments. Todd Miller, owner of Community Crafthouse, revealed his renewal policy more than doubled, skyrocketing from $17,000 to nearly $40,000 this year. These costs are a substantial burden for small business owners and can jeopardize their operations.
So, how can Charleston’s vibrant restaurant scene survive these turbulent times? One proposal comes from insurance producer Ben Hebel, who believes that state-level changes could help alleviate the financial pressures on restaurants. “Reach out to insurance carriers that will have this conversation with us and see what we can do to make this a level playing field,” he suggested.
But it’s not just about regulations and policies; consumers have a role to play too. Ferrebee encourages locals to support their favorite eateries and educate themselves about which ones are locally owned. “Continuing to support those restaurants as much as possible is important,” she reiterated.
As Charleston’s restaurant scene navigates these choppy waters, it’s clear that creativity and community support will be key to thriving. With a little help from their loyal diners, many local spots can hopefully remain open and continue to serve up the delicious dishes that Charleston is known for.
Let’s all do our part in ensuring that this stunning city remains a top food destination by supporting local businesses and celebrating the unique flavors of Charleston.
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