Thousands of Independents Close

The U.S. lost more than 5,000 restaurants in the past year, nearly all of them independent operators, according to market research group NPD Group.

A total of 5,204 restaurants disappeared from the national landscape from Spring 2009 to Spring 2010. The loss was split fairly evenly between quick-service restaurants, with 2,521 closing, and full-service restaurants; 2,683 closed.

Nearly all of the restaurants that closed were independents, in other words, small businesses. The number of independently-owned restaurants fell to 311,548 from 316,641. Chain restaurants fared better, falling to 267,868 from 267,979.

The research firm tracked closures from April 1, 2009 through March 31, 2010.

“It’s been a difficult time for the restaurant industry with customer traffic down over the past year,” says Greg Starzynski, director, product development-foodservice at NPD, in a release. “The unit losses we’re seeing in our latest census are a reflection of the weakness in the industry with the greatest impact on the independent restaurant operators.”

Still, the number of restaurants closed represents only about 1 percent of all the restaurants in the U.S.

The loss of independent restaurants is a stark example of how tough a year it has been for small businesses, hampered by a tough credit market, weak consumer spending, and high unemployment.

The most recent survey of small business owners from the National Federation of Independent Business reflects just how tough the environment has been.

NFIB tracks small-business conditions every month, and in June, the small-business optimism index fell 3.2 points, to 89, after showing gains through the spring. The survey shows small businesses having difficulty accessing credit, worrying about future revenue, and cautious about plans to hire.