Local Restaurants Struggle to Stay Afloat Amid Weather and Economic Challenges

Industry leaders discuss the pressures facing the restaurant sector in the Capital Region

Feb. 3, 2026 at 11:39pm

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Local restaurant owners in the Albany, New York area are facing a difficult season, with some establishments having to close altogether. Industry leaders cite factors like freezing temperatures, winter storms, reduced business travel, and rising costs for labor, food, rent, and utilities as major challenges impacting the industry. The New York State Restaurant Association is urging the public to support local restaurants to help them and their staff weather the economic pressures.

Why it matters

The restaurant industry is a cornerstone of many downtown communities, providing jobs and contributing to the local economy. The struggles facing local eateries highlight the broader economic challenges impacting small businesses, especially those in the hospitality sector that have been hard hit by the pandemic and other recent disruptions.

The details

Local restaurant owners in the Albany, New York region are grappling with a range of pressures that are threatening the viability of their businesses. From extreme winter weather to reduced business travel and changing consumer habits, establishments are seeing declines in foot traffic and revenue. Industry leaders cite rising costs for labor, food, rent, utilities, and credit card fees as major factors squeezing profit margins. While some long-standing delis have closed, one farm-to-table restaurant is bucking the trend by opening a second location and emphasizing its commitment to the local food economy.

  • The New York State Restaurant Association held its annual industry awards on February 4, 2026.
  • Two long-time delis, Genoa's in Latham and Gershon's in Schenectady, recently closed citing rising food costs.

The players

Jason Pierce

President of the Albany Restaurant Association.

Melissa Fleischut

CEO of the New York State Restaurant Association.

Dominick Purnomo

Owner of Yono's and DP restaurants.

Katriel Houlihan

Business partner for Mint, a farm-to-table restaurant that opened a second location.

Cagney Houlihan

Business partner for Mint, a farm-to-table restaurant that opened a second location.

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What they’re saying

“It's a struggle for any restaurant to survive here in the Capital district.”

— Jason Pierce, President of the Albany Restaurant Association

“Restaurants that are in downtowns are really in a critical situation right now. Business travel is down. The work from home environment is keeping people away.”

— Dominick Purnomo, Owner of Yono's and DP restaurants

“It's important to remember that all of our local restaurants are pretty much the cornerstone in a downtown community. As much as you can, even when things are tight and difficult, support them so they can support you.”

— Melissa Fleischut, CEO of the New York State Restaurant Association

“People also need to remember that it's not just the restaurant owners that are struggling, it's the staff. These are people that come to work every night and they rely on tips, if people aren't dining, they're not making a lot of money. Give them what you can to help them survive this cold winter.”

— Jason Pierce, President of the Albany Restaurant Association

“Community is everything. It's the pulse, it's the heartbeat of what it means to be human. So to have these projects where we're so involved and giving back in a way that feels meaningful is really, really special.”

— Cagney Houlihan, Business partner for Mint

What’s next

The New York State Restaurant Association plans to continue advocating for policies and initiatives to support the local restaurant industry and its workers.

The takeaway

The struggles facing local restaurants in the Albany area underscore the broader economic challenges impacting small businesses, especially in the hospitality sector. While some establishments have been forced to close, others are finding ways to adapt and thrive by emphasizing community connections and local sourcing. Supporting local eateries can help sustain these important community hubs.