Why do restaurants close so suddenly?

Nov 13, 2014, 7:22am PST

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While many retail businesses signal the end with going-out-of-business sales, restaurants often just shut the doors for good, according to restaurant industry experts.

Staff Writer and Social Engagement Manager- Sacramento Business Journal
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After a standard night of business, a restaurant closes abruptly -- and permanently -- the next morning. If they're lucky, customers might get a note on the door informing them of the news.

While many retail businesses signal the end with going-out-of-business sales, restaurants often just shut the doors, according to restaurant industry experts.

"For a lot of these owners, maybe it's just the fear of the unknown. They figure the short goodbye is better than the alternative," said Andy Soto, founder of Sacramento-based Spectrum Restaurant Consulting.

And larger restaurant operators, especially those from corporate chains, might see a quick goodbye as a way to "keep control of the situation and kind of do it on their own terms," Soto said.

Johnny Garlic's in Sacramento closed on Monday, reportedly without giving advance notice to employees or customers. The restaurant, backed by TV cooking show personality Guy Fieri, opened in 2007.

Other restaurants in the region have closed in a similar manner. McCormick & Schmick's in downtown Sacramento closed suddenly last October. The Broiler did the same thing last year. And even though it eventually reopened under a slightly different concept, Enotria Restaurant & Wine Bar announced an immediate closure earlier this year.

While this method of closing might seem harsh to consumers, it doesn't necessarily mean the restaurant owners are bad people, one expert said.

"I don't think they're intending to make the consumer and the public angry," said Aaron Noveshen, founder of The Culinary Edge, a San Francisco-based food and restaurant consulting business. "It doesn't mean that they don't take care of their staff. Sometimes they do, sometimes they don't."

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Sonya Sorich is social engagement manager and a staff writer at the Sacramento Business Journal. She oversees social media activity and writes about retailing, small business and restaurants.

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