Restaurants and coffee shops are struggling in this economy. I popped into the Harbour Bay Shopping Centre near Simon’s Town during the week and saw that the Cattle Baron there had closed down. This was a huge, 100-seater restaurant. I went there last year and I couldn’t believe how empty it was. I think there were only two couples in the entire restaurant at 7:00 in the evening—it was amazing how bad it looked.
At the time, this Cattle Baron was running advertisements on the local radio and had specials every day of the week. Now, the puzzle has been completed: they were battling. Today, something else is being built there, but there’s no indication what it will be.
The closing of the Cattle Baron near Simon’s Town reminds me of a few years ago at Peter Place, Sandton, where a Spur was going for many years. This was back when you could still get those fantastic salad bars they had. Then they canceled them. I could never find out quite why. The staff said it was unhygienic having an open area with salads, and that’s why they closed it down. There may be a bit of truth in that, but it’s probably that it wasn’t as profitable as they thought.
Spur Corporation is a listed company; it has to think of profits. Anyway, it seemed like virtually overnight that the Spur in Peter Place just closed down.
I’ve seen many restaurants being started and closing down. I remember a favorite coffee shop restaurant that was in the Sanlam Centre, Randburg, which is now called Randburg Square or something like that. It had a fantastic restaurant where you could go Saturday mornings and have coffee and cake or breakfast, but that’s all gone. The whole profile of these centers has changed.
Restaurants come and go. Often, they are started by bright-eyed and bushy-tailed entrepreneurs and then suddenly fizzle out. The big listed chain restaurants may seem like they’re having an easy time, but they come and go, too. Many get closed down and new ones open. Look what happened to Mike’s Kitchen! I don’t know how many branches are left, but Mike’s Kitchen in Johannesburg was big in its day, especially that lovely one in Braamfontein. I think they only have one left in Bryanston, if it’s still there. So, it’s a rough and tumble business.
It was interesting to see this week that Statistics South Africa had released figures showing that the real income of restaurants and coffee shops had declined by almost 2% year on year. What that means is not just the total number of physical closures; it means that the actual revenue generated across restaurants and coffee shops is actively shrinking. This sort of backs up the belief that the South African economy isn’t doing well, despite the hoo-ha—or the official panting—around tourism statistics showing how many visitors are coming to the country. Locally, for the everyday operator, it’s not so good.
When you dig into the official figures on business closures, the numbers paint a stark picture: Stats SA recorded close to 140 liquidations in the trade, catering, and accommodation sectors alone so far in 2026.
Yet, the restaurant business can still go exceptionally well for some. I think back to those fantastic little places out in Observatory, Johannesburg, with that famous chef—I think it was Braam Kruger.
I was talking the other day to someone about those fantastic, legendary Chinese restaurants down on Bree Street or Commissioner Street in Johannesburg. We always used to frequent Number 5, and this guy I was speaking to remembers Number 5, where the Chinese food was authentic and absolutely delicious.
For a modern example of where independent restaurants are highly successful: take the independent place that’s only about a kilometer away from where that Cattle Baron closed down. I’m not exaggerating, but there are probably about 50 cars parked on one side of the road and 50 cars on the other side in the evenings when Dixi’s in Glencairn is open. I don’t know how so many people can fit into one restaurant like Dixi’s, but the place is jam-packed, and in summer months, it is absolutely full. I think you’d need to book well in advance just to get a table. From personal experience, I can vouch for the food, which is great. The restaurant experience itself and the ocean view are fantastic. The staff are okay—everything seems a little bit rushed—but it’s a thoroughly pleasant place.
The main thing is the food, and there are steaks there that you simply can’t find anywhere else—they almost seem to have secret recipes. So, yes, there are plenty of very successful restaurants in South Africa, but those that are closing down in this 2026 economy remain a worrying sign.
It’s particularly worrying for all those corporate types who dream about opening a restaurant or a coffee shop to escape the corporate prison. They don’t realize sometimes that unless they have the true appetite for it and are thoroughly trained, running a coffee shop can become its own kind of prison. You have to be there all day and run the place yourself, because if you hand it over entirely to staff, it’s going to end in total disaster.
And yet, once again, there are many successful restaurants and coffee shops that continue doing a roaring trade, especially when they’re located in vibrant, high-foot-traffic areas like Kloof Street in Cape Town or prime spots like Rosebank across Johannesburg.
