Inflation woes: Two trendy downtown Halifax restaurants shutter

Two popular restaurants in downtown Halifax are closing, in part due to high operating costs.

Lawrence Deneau, owner of Julep Kitchen & Cocktails and Hermitage wrote on Instagram that, “due to skyrocketing costs, food inflation, COVID shutdowns and debts incurred over the past three years, it has become impossible to operate sustainably.”

On Friday, customers passing by Julep on Barrington Street expressed their disappointment.

“It’s too bad to see a business with what you would think is a good model and everything going under,” said Jordan Wilson.

“My roommate loves this place,” said Ben Horgan.

Gordon Stewart, the executive director of the Restaurant Association of Nova Scotia, points out how Hermitage opened in the middle of COVID-19. Back then there were safety nets but those are now gone.

“You’ve got all new debt you’ve got to pay back plus probably some of the debt from COVID so it’s just too much,” he said.

Other new restaurants have popped up downtown and Stewart said customers are coming back but costs are also mounting.

The cost of food, electricity, dishes and borrowing -- everything that goes into a restaurant business -- has gone up.

“I think for all intents and purposes, we’re going to see more close,” Stewart said.

Down the street, the co-owner of Star Anise Vietnamese Noodles was disappointed to hear Julep was closing.

“I’m really surprised,” said Toni Chan. “We’ve been there a few times. The food is good, all of the workers and everything. The atmosphere is very nice too.”

At her family restaurant, broccoli was taken off the menu because the price doubled.

“Now the price has gone down so I can put it back,” she said.

Chan notes how other places have increased the prices for customers but that’s not something that can happen often. Her strategy is to stick to the menu as best as they can.

“We do beef noodle soup,” Chan said. “You can’t take out the beef. We’ll have no business.”

In his post on Instagram, Deneau said his staff will receive severance packages to allow them enough time to pursue other paths.

“Please welcome them into your establishments knowing they are well-trained and highly motivated members of our beloved industry,” he wrote.

"As a small business owner, it is very difficult to pour your entire being into a project and have no choice but to give it up. I wish this feeling on no one, but I am positive and hopeful for what is to come."

CTV News reached out to Deneau for an interview but did not hear back.