‘We’re doing everything we can:’ N.S. restaurant faces closure amid rising costs

Restaurants struggle to stay afloat as costs climb and customers cut back.

An authentic Mexican restaurant in Bedford, N.S., says its on the brink of closure, amid rising food and operation costs.

“We’ve been here for two years… I started it because I wanted to share my culture, but also my family has all other restaurants around Canada,” says Daniela Alonso, owner of Taquitos Cocina De Mexico.

“When we started, it was the new thing and it was going really well, but sales went down. And we tried making deals, making specials. We tried all kinds of things. It wasn’t working. You know, you start getting behind on your bills, rent everything.”

The restaurant, located on Ella Lane in Bedford’s Larry Uteck plaza, is surrounded by other businesses Alonso says have also struggled to keep up.

“Just here in the plaza, I think I have seen four or five businesses close in the past few months, which only makes it harder for us too. We look at them and it’s very scary. I think a lot of local places are having a very, very hard time,” she said.

As of 2025, 41 per cent of restaurants in the province are still operating at a loss or a break-even, according to the Restaurant Association of Nova Scotia.

“To give some perspective, it was 12 per cent back in 2019, pre-pandemic and profit margins are still really tiny, around four per cent or just a little under. So, restaurants are still being really squeezed. They really felt that for 2025,” says Natasha Chestnut, the association’s executive director.

Chestnut says 2025 was a very challenging year.

“I think most people are feeling that inflation is still really high and it’s still really impactful,” she says.

“Operational expenses are up, and not just food. Labour is up, utilities in general are up. If you don’t own your restaurant space and you’re renting, you’re seeing those costs have all gone up.”

Foot traffic slows in January, which adds to the already stressed industry.

Chestnut believes there are things governments can do to help support restaurants, like increasing the discounts for licenses on alcohol.

“Nova Scotia has 10 per cent (discount), it’d be great to see an increase on that. Ontario and Newfoundland have upped their license discounts. Something like that would be helpful,” she says.

Chestnut adds incentives on buying local food products for restaurants could also help.

“Last year, it was lobbied on the federal level for the GST/HST exemption on food. Our friends at Restaurants Canada are still lobbying hard for that. That could be really, really helpful on the affordability side,” she says.

Meanwhile, Alonso is holding out hope her doors stay open.

She shared a post on social media asking people in the community for support, in what she calls a “last resort.”

“The community did show up. It’s been great for the past couple of days, but if it doesn’t stand, if we don’t get the sales, then yes, we could close,” says Alonso.

“We depend on the community. We’re doing everything we can. Like I said, maybe introducing new things to our menu, maybe doing new deals, maybe expanding in some other ways… we’re exploring everything, but the community is what really, really helps us.”

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