How to Find Out Why a Restaurant Closed Down

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There may be many reasons for a restaurant closure.
There may be many reasons for a restaurant closure. (Image: Jupiterimages/Photos.com/Getty Images)

Of all commercial businesses, restaurants fail more often than any other type of business. Cornell University researchers found that some 26 percent of restaurants fail in their first year of business, and the rate diminishes to 19 percent in year two and 14 percent in year three. They also found that failure rates are higher for small, independent restaurants. Financial, marketing and management issues are the reasons that cause most restaurant closures. In addition to business failure, there may be other reasons for closure, and it should not be too difficult to find out what they are.

Check the doors and windows of the restaurant for any legal notices, such as those that would indicate an eviction or a public health closure.

Ask neighboring business owners what they know about the closure of the business.

Visit the local public health department to find out if the restaurant closed temporarily or permanently, due to failing public health inspections. You can also visit the All Food Business website and check on-line for restaurant closures due to public health issues by state and county.

Check local newspapers and publications to see if the restaurant is listed in the bankruptcy public notices, as required by law if the restaurant has gone into receivership. There may also be a news article that indicates a reason for closure.

Look around the neighborhood. If there are a number of similar types of restaurant, it may simply be that the restaurant could not remain competitive and a viable financial concern.

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