Why so many restaurant closings in Gainesville? Rising costs are hitting the industry hard.

"What's going on?"

That's the questions many in Gainesville are asking after three local restaurants in less than a week announced plans to close in December.

The announcements began Nov. 27, when Halo Potato Donuts announced via social media that it would be closing its three locations.

"With a heavy heart, we share tough news. After six wonderful years, Halo Potato will have its last day on December 3," the social media post said. "We want to thank each one of you for making these years special. Your support has meant the world to us."

Owner Drew Stuerman was blunt when asked by one Facebook user why he decided to close.

"This economy has taken a toll on Halo. We no longer saw the sales needed to cover all of our expenses," he wrote."

Eric Godet, president and CEO of the Greater Gainesville Chamber, said rising costs across the U.S. on everything from transportation and insurance to utilities and labor have impacted all businesses, but that restaurants, which typically have smaller margins, are more susceptible to the increases.

"We knew with all of our costs going up that there were going to be ramifications," he said. "Our restaurants, I think, take that hit a lot quicker and sooner than others."

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Rising costs also led to La Fiesta Mexican Restaurant's Dec. 3 announcement that it will be closing after more than 30 years in business. The restaurant, which opened in 1989, will open its doors at 9513 NW 39th Ave. for the last time on Dec. 16.

"You just keep watching the bank account go down and down. You want to just have enough many to pay the employees," owner David Castro said. "Everything just keeps going up. It's a tough market now. It's a tough business."

Hours later, Swamp Boil, which opened in October 2020 on Northwest 13th Street, announced on social media that it too would be closing this month.

"With a heart full of emotions, we announce the closing of Swamp Boil, a place that has been more than just a restaurant to us and, we hope, to you as well," the restaurant wrote on Facebook.

The post prompted almost 100 comments from concerned customers, including Stuerman, the owner of Halo Potato, who, without providing any details, said he expects more local restaurants to announce plans to close as well.

"There's many more that are about to be announced. This isn't so concerning if there's fresh, new concepts coming to Gainesville, but there's not. Eventually, only the big names will be here," he wrote.

Godet said more national chains with "deeper pockets" continue to enter the Gainesville market, but that "unique local restaurants" are the real "treasures" of the community.

"We want to really help them to be as successful as possible, but we know we are fighting some national trends that are out there," he said.

This article originally appeared on The Gainesville Sun: Cost increases forcing some Gainesville, Florida restaurants to close