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Local News
12 September 2025

Closures And Comebacks Shape Restaurant Scene In 2025

Economic pressures force beloved markets and restaurants to shut down while historic Los Angeles diner prepares for a hopeful reopening under new ownership.

In a year marked by economic turbulence and shifting business landscapes, several beloved eateries and markets across the United States have faced closure, while others prepare for a hopeful return. The stories of Carla’s Fresh Market in Los Angeles, Iron Hill Brewery & Restaurant in the Philadelphia region, and the historic Original Pantry Café in downtown LA reveal the challenges and resilience of local businesses navigating uncertain times.

Carla’s Fresh Market, a cherished corner grocer and prepared foods hub in Highland Park, Los Angeles, shut its doors on September 8, 2025, after less than two years in operation. Owner Ariell Ilunga, a native Angeleno and former Hollywood Farmers Market curator, poured her heart into creating a space that offered more than just groceries. According to Eater, Ilunga’s vision was rooted in community, accessibility, and a touch of delight. “I’m realistic. I’m not a foodie for the sake of being a foodie, I’m a Black American mom,” Ilunga said in 2024. “We’re feeding families. We need value, we need accessibility, we need ease, and then there’s a time to layer in some special stuff that delights you and makes you happy and makes life less awful.”

Located at the bustling intersection of North Avenue 50 and Monte Vista Street, Carla’s Fresh Market quickly became a neighborhood staple. It boasted close relationships with local farmers and vendors, selling everything from niche pantry ingredients and farmers’ market produce to a customer-favorite olive oil bean salad and baguettes from Bub and Grandma’s. The market was more than a store; it was a gathering place for families seeking a hyper-local alternative to big-box grocers.

But even a loyal customer base couldn’t shield Carla’s from mounting challenges. Ilunga cited a perfect storm of factors behind the closure: the ongoing effects of the Los Angeles entertainment industry downturn, a broader economic slump, and the instability of rotating landlords. She noted, “Something happened here in LA in August 2024. Myself, and every other business owner, thought it was just summer travel. It never really picked back up, and everything is more expensive. Then the fires happened in January.” The Eaton and Palisades fires, while geographically distant, sent shockwaves through the region’s businesses, including Carla’s.

Ilunga’s journey to open Carla’s was buoyed by a $250,000 grant from the Local Initiatives Support Corporation (LISC) and initial financing from Baller Mineral LLC, the original landlords who approached her about launching the business. Yet, the space always felt too large for the market’s needs, and as the months wore on, new obstacles emerged. In the spring of 2025, large-scale ICE raids and the repossession of the property by the financing bank added to the strain. “I had to pull my husband off the bench just to keep the payroll low,” Ilunga recalled. “Every month, something changes while we run skeleton crew, ordering essentials, and sort of limping along still, but I still loved every minute of it — except for the business side.”

In August, a new prospective landlord, LO Avenue 50 LLC, was poised to acquire the building. Ilunga faced a crossroads: seek a substantial cash injection and renegotiate the rent, or sell off the store’s assets and close. When the building was sold on September 4, 2025, and she was notified to vacate by year’s end, the decision became clear. After consulting business advisors, Ilunga closed Carla’s Fresh Market on September 8. She surrendered most items to her landlord, ensuring employees and vendors were paid, and launched a GoFundMe campaign to shutter “with integrity,” raising over $9,000 toward a $26,000 goal.

Reflecting on the closure, Ilunga told Eater, “I’ve been as exposed as every other small business owner and every other human being going through a hard time. Whether we’re worried about our own personal jobs, hearing about friends losing jobs, there’s turmoil in the ether. I think LA has been in a recession for a while now, and no one is calling it.” She remains hopeful about reopening Carla’s in a smaller space in Northeast Los Angeles, but her story underscores the fragility of local businesses in the face of economic headwinds.

The challenges are not unique to Los Angeles. On the other side of the country, Iron Hill Brewery & Restaurant announced the closure of three locations in the Philadelphia region, including its flagship brewpub in Newark, Delaware. The closures, made public on September 11, 2025, are part of what company executives described as a “changing business landscape.” The decision reflects a broader trend in the hospitality industry, where rising costs, shifting consumer habits, and lingering effects of the pandemic era continue to reshape the map for restaurants and breweries alike.

Yet, amid the closures, there are glimmers of hope. The Original Pantry Café, a historic downtown Los Angeles diner that first opened its doors in 1924, is set to make a triumphant return after a six-month closure. The diner, located at Figueroa Street and James M. Woods Boulevard, shuttered on March 2, 2025, after a labor dispute between the union representing its employees, Unite Here Local 11, and the previous owners, the Richard J. Riordan Administrative Trust. The dispute centered on whether the trust would retain employees and honor their union representation under new ownership.

On September 11, 2025, real estate entrepreneur Leo Pustilnikov announced he had acquired the diner and would reopen it on January 1, 2026, with the same group of workers. “I’m excited to reopen and see them back here,” Pustilnikov said. “I feel like The Pantry is sort of the story of LA. It’s had its ups and downs and, hopefully, much like LA and much like downtown, the reopening will boost the rebirth of downtown.”

The announcement was met with joy and relief by employees and union officials. Jesus Moran, a server at the Original Pantry for 48 years, expressed his gratitude: “We’re so happy for this new resolution. We hope to serve Los Angeles for another 100 years. To our customers, thank you for your support during our events, and to UNITE HERE Local 11 and Mr. Leo for bringing us back. We look forward to serving lots of pancakes again.” Kurt Petersen, co-president of Unite Here Local 11, called the reopening “a ray of hope in a dark time for our city,” adding, “That the Original Pantry will reopen is not just a union victory — it is a Los Angeles victory.”

For longtime employees like Diana Garcia, who has worked at the diner for 17 years, the reopening feels like a miracle. “Now we can breathe and are super thankful to be here with this new owner and this new miracle that this even happened,” she said. Even those who found new jobs during the closure, like Alejandro Ortiz Saldana, expressed deep nostalgia for the Pantry. “I miss the Pantry, too, because I’ve been in service for almost 25 years,” Ortiz Saldana said. “I miss talking to my customers. I miss a lot of things. I’m happy here, but I think that’s my first home.”

As Los Angeles and other cities grapple with economic uncertainty, the stories of these businesses—some closing, some reopening—highlight both the vulnerability and resilience of America’s local food institutions. The fate of places like Carla’s Fresh Market, Iron Hill Brewery, and the Original Pantry Café will continue to shape the communities they serve, offering lessons in adaptation, endurance, and the enduring value of a shared meal.