Albuquerque’s Business Landscape: the Impact of Recent Closures

Understanding the Recent Business Closures

Albuquerque is witnessing a wave of business closures that raises critical questions about the health of its local economy. Notable establishments like the east downtown location of the Range Cafe, which has served the community for 20 years, will close on December 27, 2025, due to the sale of the building. Bosque Brewing has also shut down its locations on San Mateo and Unser as part of a bankruptcy restructuring effort. These closures not only affect popular dining spots but also reflect broader economic challenges in the region.

Challenges Facing the Restaurant Industry

The local restaurant scene is particularly vulnerable, with approximately 3,500 establishments across New Mexico facing stagnant growth since 2017. Rising operational costs, including food prices, labor, and utilities, have compounded the difficulties for restaurant owners. According to Carol Wight, CEO of the New Mexico Restaurant Association, these escalating expenses make it increasingly challenging for restaurants to remain viable. Over 200 restaurants have permanently closed in the state, highlighting an ongoing crisis in the food and beverage sector.

Indicators of Economic Struggles

Albuquerque’s economy has shown sluggish growth, with an annual job growth rate of only 0.7% from 2015 to 2020. This places the city within the bottom 25% of U.S. markets in terms of economic expansion. A recent count along Central Avenue revealed a stark contrast: 17 closed storefronts against just 54 open businesses. This visible decline contributes to a perception of abandonment and highlights the need for effective city incentives aimed at revitalizing the area.

Contributing Factors to Business Closures

Several factors contribute to the closure of beloved local businesses. These include:

• Escalating Costs: Rising prices for food, security, and utilities are squeezing profit margins.
• Bankruptcy Restructuring: Some businesses, like Bosque Brewing, are attempting to navigate financial difficulties through bankruptcy.
• Health Department Interventions: Rapid response closures due to health violations have also played a role in some businesses shutting their doors.
• Construction Moratoriums: Events such as the State Fair and holiday seasons have imposed additional operational challenges.

Broader Implications for the Community

The recent closures in Albuquerque signal significant distress in consumer-facing sectors, potentially leading to a decrease in local jobs and tax revenues. They also threaten the existence of community hubs that contribute to the city’s cultural and social fabric. As the city grapples with slow job growth and a stagnant restaurant industry, efforts to attract new businesses and diversify the economy will be essential for long-term recovery.

Looking Ahead

While city officials are implementing incentives to fill vacant storefronts and promote family-friendly developments, addressing the underlying issues of affordability, security, and economic diversification remains critical. The community’s resilience will be tested as it navigates these challenging times.