Happy Valentine’s Day! A Tribute to Culinary Entrepreneurs

Happy Valentine's Day! Whether you’re celebrating with a friend for Friendship Day or a loved one, you might be among the more than 40% of Americans planning to dine out at a nice restaurant tonight.

As my partner and I celebrate our 25th Valentine's dinner, I reflect on all the favorite restaurants we've frequented over the years for this special occasion—some are still here, while others have since closed.

So, for this Valentine's Day, Texas Global Business offers a brief economic insight into the restaurant industry, recognizing the special role restaurants play not only in our lives but also as a model for entrepreneurial success.

As of 2024, the food service industry in Texas is worth more than $100 billion (over 3.7% of Texas GDP) and employs roughly 11% of the state’s workforce. Despite being a major economic driver, restaurants continue to struggle with high inflation and rising operating costs, such as rent and banking fees, alongside persistent labor shortages. These combined challenges have reduced profitability—54% of restaurants in Texas reported decreased profits last year, compared to just 14% that saw increases.

With tight margins and a heavy reliance on direct labor, it's no surprise that 17% of restaurants in the U.S. close within their first year, 30% within three years, and 50% within five years. To survive, restaurant entrepreneurs must constantly innovate while maintaining high-quality offerings and a strong brand presence to stay relevant and build customer loyalty. This requires excellent management skills, a deep understanding of market demand, high level of quality control and clear marketing strategies. Mastering these elements not only helps restaurants weather economic shifts but also allows them to thrive as key contributors to their local communities.

Often overlooked, successful restaurant entrepreneurs play a vital role in our economy. They exemplify the key attributes needed to build a thriving business: a clear understanding of their value proposition, the ability to adapt quickly to changing consumer demands and economic challenges, a commitment to maintaining quality, fostering customer and employee loyalty, and continuously innovating to stay fresh and relevant.

So this Valentine's Day, if you dine out with friends or a special loved one, take a moment to appreciate your favorite restaurants by sharing what you love about them and their contributions to your community. And don’t hesitate to offer constructive feedback—just like any successful business, restaurants value customer input as a key driver for growth and improvement.

Texas Restaurant Association

U.S. Chamber

Only the Bad Die Young: Restaurant Mortality in Western US, by Philip B Stark, October 2014