New York restaurants post sharpest annual decline in at least 36 years
The number of eating and drinking places in New York State fell about 2,000 year-over-year in Q1 2026, the steepest drop in at least 36 years and worse than any quarter during the 2020 pandemic.
New York State's count of eating and drinking places fell by roughly 2,000 year-over-year in Q1 2026, the largest annual decline in at least 36 years and deeper than any quarterly contraction during the 2020 pandemic.
The sector has now posted four consecutive quarters of year-over-year declines, the longest such streak since 2021.
Operators are facing broad cost pressure, including insurance premiums, wages, interest rates, utilities and employee health coverage, with overall expenses rising faster than national averages. Last year, Manhattan Chamber of Commerce data showed health insurance costs for New York-area service firms up 12.9%, business insurance up 7.0%, and utility costs up 8.5%.
Source: The Kobeissi Letter