By admin TUCSON, Ariz. (13 News) – Cafe Francais, a bakery on Tucson’s east side, is permanently closing after this weekend, following seven years in business.
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The bakery announced the closure in an Instagram post shared Wednesday, saying economic uncertainty and rising prices have made it too difficult to keep its doors open.
A sign posted on the bakery’s front door read, “This was neither expected nor planned.” The owners added they had no other choice.
Industry reaction
Steve Chucri, president and CEO of the Arizona Restaurant Association, said Cafe Francais is not alone.
“We aren’t surprised, unfortunately, sometimes by these closings because running a restaurant is probably one of the most challenging businesses to have to engage in,” Chucri said.
Chucri said restaurants across the state and country are facing higher food prices and slower sales than in previous years. He said this is due in part to tariffs and high gas prices, along with other factors.
“Rising insurance costs to rising real estate costs for rents, and like I just mentioned, credit card processing. It’s not any one thing it’s all those things combined which puts a lot of weight on the shoulders of a restaurateur,” Chucri said.
Impact on consumer spending
In the bakery’s statement, Cafe Francais wrote, “This economy has only become more uncertain. And the price of everything keeps going up for everyone.”
Chucri said economic uncertainty affects not only businesses but also the amount of money customers are willing to spend on dining.
“The restaurant industry are the beneficiaries of discretionary income. When that starts to shrink because of gas prices and because of other increases in your daily lives, we get the haircut at the end of the day,” Chucri said.
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The rise of weight loss medication and changes in consumer behavior have also reduced profits across the restaurant industry.
“When they’re not ordering a dessert, and then they’re not ordering an appetizer or they’re splitting an entrée, that has a dramatic effect on what the end check will be,” Chucri said.
Chucri said eliminating tariffs and lowering inflation is key to creating an economy where customers want to eat out and businesses have the ability to feed them.
“At the end of the day, we need that certainty, that workable solution is certainty, and we don’t have that right now because it’s so volatile,” Chucri said.
What’s next
Chucri said Arizona’s dining scene is strong overall and is expected to bring in $24 billion in restaurant sales this year.
Cafe Francais will serve pastries for the last time this weekend at the Rincon and Rillito farmers markets.
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