Moscow is facing the largest wave of restaurant and bar closures since the pandemic.
Forty-five popular Moscow establishments have closed in the first half of this year. Among them are such legends as “Darling, I'll Call You Back,” Smoky BBQ, The Toy, MiMi (Borovskoye Shosse), and Beerside. This represents a two-fold increase compared to last year.
At least 465 Moscow establishments will close this year, predicts Zulfiya Shilyaeva, head of the retail real estate department at CMWP. Both small and large restaurants will suffer. Such a massive exodus of players from the market is comparable only to the lockdown period, when 455 businesses closed due to the coronavirus.
Restaurateur Dmitry Levitsky told Baza that the current crisis began in the second half of 2024 due to a decline in demand—for many, going to a restaurant has simply become an unaffordable luxury. This year, establishments have also faced increased costs: suppliers are jacking up prices due to the increased VAT. Meanwhile, catering establishments can't raise menu prices without customers leaving. As a result, restaurants and bars' margins are dwindling, forcing them to close.
According to restaurateurs, many establishments operated until the end of the year out of inertia, hoping to build up a traditional safety net in December thanks to corporate events and holidays. But this year, it won't save those who were operating at break-even or on the brink—January and February will be their moment of truth.
UPDATE: According to updated information, the Smoke BBQ restaurant continues to operate, and its restaurateur, Alexey Burov, told Baza that the restaurant market is currently in a difficult situation, but their establishment remains open.
