LA’s restaurant and bar apocalypse as 300-plus spots close this year over red tape and insane bills

At least 301 restaurants, bars and cafés within Los Angeles city limits have closed since the start of 2026, 25% more than the 241 closures recorded during all of 2025. The losses include well-known venues across the city and highlight pressure on the hospitality industry from rising costs, regulation and weaker customer spending.

Operators cite steep insurance increases, higher wages and paid-time-off requirements, alongside rent and other business costs. Employees Only’s managing partner said its liability insurance premium rose 120% from 2021 to 2025, while the bar remained busy but customers spent less. The figures exclude closures elsewhere in Los Angeles County; Crustacean closed its longtime Beverly Hills location, while Sherman Oaks bar Pineapple Hill received a 60-day notice to vacate amid redevelopment.