Moscow Hit by Wave of Closures of Popular Establishments 0 9

Moscow is facing the largest wave of restaurant and bar closures since the pandemic.

According to "Baza", 45 popular establishments in the capital closed in the first incomplete month of this year. Among them are legends such as "Honey, I'll Call You Back", Smoky BBQ, the toy, MiMi (Borovskoe Highway), beerside. Compared to last year, this is a twofold increase.

This year, at least 465 establishments in Moscow are expected to close, predicts Zulfia Shilyaeva, head of the commercial real estate department at CMWP. Both small establishments and large restaurants will be affected. Such a mass exodus of players from the market is comparable only to the lockdown period when 455 organizations closed due to the coronavirus.

Restaurateur Dmitry Levitsky told "Baza" that the wave of today's crisis began back in the second half of 2024 due to a decline in demand — for many, visiting a restaurant has simply become an unaffordable luxury. This year, establishments are also facing increased costs: suppliers are raising prices due to higher VAT. At the same time, food service businesses cannot raise menu prices, as customers will simply leave. As a result, the margins of restaurants and bars are shrinking to a minimum, forcing them to close.

According to restaurateurs, many establishments operated until the end of the year out of inertia and hoped to create a traditional safety cushion in December through corporate events and holidays. However, this year it will not save those who operated at break-even or on the edge — January and February will be a moment of truth for them.