Why some El Paso restaurants are closing

EL PASO, Texas (KVIA) -- Lately many local restaurants across the Borderland have recently closed.

UTEP Professor Tom Fullerton says this is ironic considering that during the first half of 2025 there were fewer nationwide closures than there have been historically. Yet in recent weeks, here in El Paso, there appears to be an increase in the number of restuarants that are closing down.

Fullerton says there's most likely multiple factors contributing to this. He says one factor is most likely due to federal policy. This as higher tariffs have raised food costs. Any time food costs go up, this lowers restaurant profitability. Fullerton added that restaurant profitability margins are fairly low, and anything which erodes profitability usually translates into higher closure rates.

Fullerton adds that other factors such as nationwide staffing shortages may also be contributing to the closure of restaurants here in El Paso. This a labor wages have increased in recent years.

Restaurants such as Malolam, Tostique and The Baked Bear have already joined the list of restaurants recently closed in El Paso.