Nearly half of Iowa restaurants struggle as Django announces closure in Des Moines
DES MOINES, Iowa —
A staggering 48% of Iowa restaurants are not profitable, according to the Iowa Restaurant Association, leading to the closure of Django, a long-standing French-inspired restaurant in downtown Iowa, in March.
“We’ve been saying for 6 to 12 months, you’re going to be surprised by who chooses to close when some of these restaurants close,” said Iowa Restaurant Association President Jessica Dunker.
Dunker is not surprised by Django’s decision to shut down, noting that nearly half of Iowa’s restaurants have been unprofitable since the pandemic. In a statement, Django’s owner, Orchestrate Hospitality, said, “This was a difficult decision for Django’s partners … today’s unique combination of market and economic conditions have created significant headwinds that prevent Django from profitably creating great guest and employee experiences.”
“Many smart operators, and I would say Django’s, Orchestrate falls in this category, must be looking at what’s the long-term viability of this model in this location and this place. And before you can’t pay staff and you can’t pay your bills, you make the choice, that difficult choice to close the doors,” Dunker said.
Dunker pointed out several challenges facing restaurants, including credit card fees, which have become their third-highest expense, often surpassing rent. Additionally, 8% of Americans are currently taking new weight loss drugs, a figure expected to rise to 30% by 2030, and younger customers are dining out less frequently.
“Forty-five percent of Gen Z would prefer on a weekend night to stay in … what happened?” Dunker said.
Django will officially close on March 14, but employees may have opportunities to work at other Orchestrate establishments, such as the Centro Italian restaurant downtown.
Dining and Cooking