The Mad Pecker Brewing Co. is throwing a party to mark a dual event: the 10th anniversary of its opening and the closing of its doors, all on March 31.
Born as a home brewery in the garage of Jason and Erika Gonzales, MP, as it is known to regulars, opened on the Northwest Side in 2015. But it could not survive the issues strangling the industry: rising food and labor costs, high interest rates, soaring credit card fees and slower foot traffic.
“We never had a bounce back from COVID,” said Jason Gonzales, the founder and owner. “We were doing almost $150,000 per year less than pre-COVID. That’s a lot.”
MP joins a growing number of San Antonio-area restaurants that have shuttered or have announced plans to close this year. The list includes La Frutería-Botanero, Thatta Boy Burgers, Eddie’s “Hijo-e-su” Café, and most recently, 225 Urban Smoke, Revolutionary Wings and Stixs & Stone.
The restaurant industry is facing a great crisis, says Blanca Aldaco, chair of the San Antonio chapter of the Texas Restaurant Association.
“It’s the hardest it’s ever been,” said Aldaco, owner of Aldaco’s Mexican Cuisine in Stone Oak. “It’s the most difficult time. Overall traffic has been slower statewide. You have to navigate through food costs, labor, credit card fees. Property taxes are crazy. That’s what drove me out of business at the Dominion.”
On Tuesday, 225 Urban Smoke cited an unsustainable leasing agreement for its decision to close on April 20. After six years in business, the restaurant posted the following on its Facebook page: “Given the current economic climate and the challenges facing small businesses, the proposed near-doubling of our lease payment simply wasn’t viable.”
Expensive fees and permits pose additional challenges. Aldaco recently went to Austin to advocate for the passage of Senate Bill 1008, proposed legislation that would loosen costly restaurant regulations.
On the senate chamber floor, Aldaco said she was charged twice for the renewal of her alcohol license. She paid approximately $4,000 to the Texas Alcohol Beverage Commission and $750 to the City of San Antonio. Unlike many restaurateurs, she could afford the fees.
“I feel for the people that are opening their restaurants today,” she testified. “They are so inundated with so many permits, I would literally not be able to open up my restaurant the way I did 36 years ago. It would be impossible.”
Stixs & Stone, a Mexican-Asian fusion restaurant, announced it is closing on Saturday to pursue another, undisclosed opportunity in San Antonio.
“This is not a cry for help from the community,” James Beard-nominated chef Leo Davila said on an Instagram post. “I cannot wait to share what we’re working on. I promise it’s something special. I promise it’s still gonna be me. I promise it’s gonna still be my amazing team and my amazing family.”
A minority of restaurants are thriving, even expanding. Chris Madrid’s, for instance, just announced that it will open on Sundays. The decision to expand to seven day service was made, in part, to combat rising operational costs, a news release said.
Revolutionary Wings started as a food truck in 2016, its current brick-and-mortar location opened two years ago. But two months ago, owner and chef Joshua Paprocki took a second job to try and save the restaurant. It didn’t work.
“Nobody understands,” Paprocki said. “People say, ‘You guys do such great stuff.’ But we needed customers in seats. Our last day will be Saturday.”
After that, Paprocki will work as a chef for Sodexo, serving children in an Austin cafe program.
“We were really trying to keep it afloat,” Paprocki said. “My wife stayed at the restaurant. I had to go to work. Plain and simple. We were making enough money to pay bills at the restaurant. But we had no money coming home. We’ve got children. You’ve got to put your pride to the side. I’ve gotta be a man and a husband and provide for my family at home.”
Gonzales had never celebrated a restaurant anniversary at Mad Pecker Brewing. The party on Monday will be his first and last.
He remains hopeful he can open another concept similar to MP. But he recognizes markers on the culinary landscape. Restaurant after restaurant shutting down.
“It’s starting to become a common occurrence,” he said. “There are more closing than opening.”
