Santa Clarita Business Closures in 2022: The Impact of Rising Costs and Covid-19

It's a sad day for Santa Clarita residents as several beloved businesses have announced their closures in 2022. New Moon, Final Score Sandwiches, Medrano's Mexican Restaurant, Chuy's, Mega Hot Chicken, Wok with Ray, and Claim Jumper are just a few of the establishments that will no longer be serving the community.

Many are speculating that the closures are due to rising costs, which can be a major challenge for small businesses. According to a report by the National Bureau of Economic Research, small businesses are particularly vulnerable to economic downturns and rising costs due to their limited resources and lack of financial cushion. From increasing rent prices to the cost of supplies and employee wages, it's no secret that running a business is expensive. For these Santa Clarita establishments, it seems that the costs may have simply become too much to bear.

In addition to rising costs, the COVID-19 pandemic has also had a significant impact on small businesses. With mandatory closures and capacity limitations, many businesses have struggled to stay afloat. In a survey by the National Small Business Association, 44% of small business owners reported that they were not confident that their business would survive the pandemic. This is a heartbreaking reality for many small business owners and their employees, and it's no surprise that we are seeing closures as a result.

While it's always difficult to see a business close its doors, it's important to remember that this is a natural part of the economic cycle. As costs rise, some businesses will inevitably be unable to sustain their operations, leading to closures. However, this also creates opportunities for new businesses to open and thrive in the community.

Let's all make an effort to shop local and support our small businesses, because they are an integral part of what makes Santa Clarita such a special place to live. As we say goodbye to 2022 and the businesses the year took with it, we say hello to new ventures and opportunities for our community to grow.

Sources:

National Bureau of Economic Research: "Small Business Cycles: Stylized Facts, Causes, and Implications" (https://www.nber.org/chapters/c8624.pdf) National Small Business Association: "COVID-19 Impact Survey" (https://www.nsba.biz/wp-content/uploads/2020/03/COVID-19-Impact-Survey.pdf)