Milwaukee restaurants struggle as ingredient costs rise and customer spending falls

Milwaukee restaurants struggle as ingredient costs rise and customer spending falls

Milwaukee-area restaurants, including Heirloom MKE and Mekong Cafe, cite new tariffs as the reason for the spike in ingredient costs this year

MILWAUKEE —

Milwaukee-area restaurants have taken to social media this week to ask customers for help, saying they are facing significant challenges from rising ingredient costs and reduced customer spending.

At Heirloom MKE in Bayview, co-owner Jess Ignatiev described this year as their worst year ever in a social media post. Ignatiev opened her farm-to-table business in 2020 during the pandemic, but said finances have been worse in 2025.

“Honestly, it’s just been such a huge hit,” Ignatiev said.

Mekong Cafe, which has been open for 17 years on Milwaukee’s northwest side, is also experiencing difficulties. Co-owner Sichanh Volp said that most tables remain empty, even on weekends.

“That was a very scary thought of like, if this keeps on being like this and (we’re) having to throw away all of the food at the end of the shift, how are we going to survive?” Volp said.

Both restaurant owners highlighted the rising cost of ingredients as a significant issue. At Mekong Cafe, a case of coconut milk that used to cost $60 now costs $80.

“Because of the tariff, they’re not bringing it in,” Volp said.

Strange Town on the east side also blames tariffs, stating that the cost of chocolate chips has doubled since January.

“Costs up. Sales down. Many of us won’t make it until Spring,” the restaurant said in a statement.

Ignatiev noted similar challenges at Heirloom.

“We’re seeing the same thing with certain products. To-go containers, with the tariffs hitting, have skyrocketed.” She added, “Right now, the issue is with Italian pasta. That is about to go into effect, so there’s more to come.”

Despite these challenges, Ignatiev finds it difficult to ask customers for help, acknowledging that they are also struggling.

“How do you ask people to come visit you when it’s tough for everybody right now?” she said.

Volp said she’s observed a decline in regular customers.

“My regulars that come on a daily basis or twice or three times a week – I don’t see them as much. So that’s how I know that something is different,” Volp said.

Andrew Weiland from Biz Times Milwaukee explained that inflation has led many people to cut back on dining out, impacting restaurants significantly.

Restaurant owners suggest that the community can help in ways other than dining out. They recommend leaving positive Google reviews to improve business visibility or purchasing gift certificates from local restaurants as holiday gifts.