Why So Many Restaurants Are Struggling To Stay Open, According To Bobby Flay

Ever wonder why so many restaurants, including your favorite ones, struggle to stay open, even when some are packed every night? Well, as celebrity chef, Food Network personality, and master of burger tips, Bobby Flay, states during a CNBC news interview, "Even though restaurants are very, very expensive ... it's still not enough for the restaurant itself. And that's why you're seeing restaurants really struggle across the board ... " 

During the interview, Flay also explains how restaurants are struggling to stay afloat and keep their doors open. The establishments are hoping to break even in this climate of rising food costs, rent, soaring labor expenses, and tightening margins. He adds, "That's not a good business model for any business." Additionally, one would think that raising prices would help restaurants survive, but the consumers who pay the higher prices become increasingly deterred from eating out as often as they used to.

Flay, who is also known for being a restaurateur, admits to CNBC that owning physical food businesses, such as restaurants, has become increasingly challenging these days. "That model is having hard time staying profitable," Flay explains. He adds a somewhat sobering admission, stating, "Trying to open a restaurant, pay the rent, in a traditional sense, has gotten more and more difficult. And that's the problem. It really breaks my heart, because that's who I am, that's how I grew up in the business, just opening restaurants in New York City ... " 

Despite his heartbreak, the food celebrity Bobby Flay has managed to stay afloat and remain profitable and successful, through licensing out his name, brand, and products such as his Bobby Flay Steak with Wonder. "I'm in the license business, in terms of like my restaurants, I'm partners with Caesars Palace in Vegas ... " Flay explains. His license deals, he reveals to CNBC, are good businesses for him.

Flay also reveals selling his pet food business, a premium cat food brand, Made by Nacho, which I and Love and You acquired in March 2026. Additionally, Flay has a deal with GreenPan, which sells a line of cookware called Bobby Flay. 

For a mogul like Flay, the licensing playbook will help him weather the storms and pressures crushing smaller players in the restaurant industry. Smaller players, without a licensing empire, brand deals, and a celebrity name to fall back on, will continue to face rising costs, razor-thin margins, and struggle with keeping afloat. Consumers will continue to face losses, watching their favorite neighborhood spots quietly disappear and their favorite chain restaurants declare bankruptcy. But hey, one could always order a pricey Bobby Flay Steak from Wonder.