Russia's restaurant crisis deepens as closures outpace new openings fivefold

The past two years have seen a sharp rise in business closures across Russia, including Primorsky Krai. Long-standing establishments and newer ventures alike have struggled to stay afloat. Yet even as many shut their doors, a small number of new restaurants continue to open their own. Rising costs, heavier tax demands, and weaker consumer spending have hit the restaurant industry hard. In major cities like St. Petersburg, roughly one new eatery now opens for every five that close. The trend has sparked concerns about the sector’s future.

Artem Paderin, a Vladivostok-based restaurateur and concert promoter, argues that economic downturns act as a filter. They force businesses to rethink their approaches or risk failing. He points out that Vladivostok’s closure-to-opening ratio remains slightly better than in larger markets. Paderin suggests survival depends on cutting unnecessary expenses and exploring fresh ideas. He urges struggling owners to experiment with new formats and adapt to changing customer habits.

The wave of closures shows no immediate signs of slowing. But some entrepreneurs are finding ways to endure by adjusting their models. For now, the balance between shutdowns and new ventures remains uneven—especially in Russia’s biggest cities.