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Rising Concerns as Texas Restaurants Face Sales and Staffing Crisis

Texas Restaurant Crisis

News Summary

Texas restaurants, particularly in Houston, are experiencing a significant decline in sales and staffing shortages, largely due to fears stemming from recent immigration raids. With many establishments reporting decreased customer foot traffic and difficulties in hiring, business owners like those at Los Primos are feeling the impacts with staggering losses. The Texas Restaurant Association highlights that a high percentage of the restaurant workforce comprises immigrants, making the current labor crunch a pressing issue that if unresolved, could lead to further declines in the industry and broader economic repercussions.

Texas Restaurants Face Significant Decline in Sales and Staffing Challenges

In Texas, a growing number of restaurants are experiencing steep declines in sales and staffing shortages due to heightened fears resulting from immigration raids targeting Latino communities. This crisis has particularly affected establishments like Los Primos, a Mexican restaurant located in the Houston area, where owner Oscar Garcia Santaella reported a staggering 40% decrease in sales.

The restaurant’s clientele largely consists of Latino individuals, many of whom fear being directly impacted by U.S. Immigration and Customs Enforcement (ICE) operations. In one instance, a recent ICE raid near Los Primos forced the restaurant to report a week with zero sales, highlighting the severe economic repercussions of these enforcement actions.

Widespread Impact on Texas Restaurants

A survey conducted by the Texas Restaurant Association in the second quarter of 2025 revealed concerning trends within the state’s restaurant industry. Key findings include:

  • 23% of restaurant members reported losing employees.
  • 21% indicated receiving fewer job applications.
  • 16% noted a decrease in customer traffic.

The fear of immigration raids has resulted in many customers choosing to stay home, further exacerbating challenges faced by restaurants. Many staff members are reluctant to work during periods of heightened enforcement, leading to a critical labor shortage that cuts across various sectors, including hospitality, agriculture, and meatpacking.

Continued Struggles Due to Enforcement Actions

As of 2022, there were an estimated 11 million undocumented individuals residing in the U.S., with projections suggesting that this figure may have increased to 14 million. Despite their common perception as a liability, undocumented workers contribute significantly to the economy, having paid approximately $97 billion in taxes in 2022.

Amid the ongoing enforcement challenges, Emily Williams, the President and CEO of the Texas Restaurant Association, stated that the restaurant industry is facing closures due to labor shortages. The ongoing immigration enforcement under the Trump administration has had far-reaching effects on the nation’s restaurants, particularly in areas with high concentrations of Latino residents.

Seeking Solutions to Staffing Shortages

Currently, immigrants make up about 22% of the restaurant workforce in Texas, not including the undocumented population. There is significant support for addressing the staffing crisis, with more than 970 chefs and restaurant leaders nationwide backing calls from the Texas Restaurant Association for Congress to grant temporary work permits to law-abiding immigrant workers. The workforce shortages are leading to increased food prices and declining service quality, impacting both restaurant operators and customers.

Customers are reportedly cutting back on their spending at restaurants, also influenced by fears regarding immigration enforcement. Garcia has pointed out the essential role that immigrants play in the restaurant workforce, noting that many are diligent, hardworking individuals who contribute positively to the industry. Without addressing these labor issues, the ongoing crisis threatens to impact the overall health and sustainability of Texas’s vibrant restaurant economy.

As Texas navigates these challenges, the importance of immigrant labor remains at the forefront, emphasizing the need for policy changes to secure a stable and viable workforce for the future of its restaurants.

Deeper Dive: News & Info About This Topic

STAFF HERE GEORGETOWN
Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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