New York restaurants drop about 2,000 year over year in Q1 2026, largest decline in at least 36 years

Eating and drinking places in New York State fell from 50,856 in Q1 2025 to 48,928 in Q1 2026, a net loss of roughly 1,928. That is the biggest year over year drop in at least 36 years of BLS data and larger than the worst quarterly contraction during the 2020 pandemic. The count has now declined year over year for four straight quarters, the longest streak since 2021. New York City accounted for about 1,100 of the losses. Costs for insurance, wages, utilities, and health coverage have risen faster than national averages. Employee health insurance for New York area service firms rose 12.9 percent last year, business insurance 7 percent, and utilities 8.5 percent, according to the Manhattan Chamber of Commerce. Nationally, independent restaurants fell 2.3 percent in 2025 for a net loss of about 9,500 locations. Multi unit franchisee bankruptcies and casual dining contraction have continued under the same cost pressures.

BREAKING: The number of restaurants in New York dropped ~2,000 YoY in Q1 2026, posting its largest YoY decline in at least 36 years.
This surpasses even the worst contraction recorded in any quarter during the 2020 pandemic.
The number of eating and drinking places in New York… pic.twitter.com/BlQL9G2NtV
— The Kobeissi Letter (@KobeissiLetter) October 17, 2026