After more than three decades serving local communities, a longstanding restaurant chain is preparing to close its final locations forever, bringing an end to a business that was once a staple of many family dinners and neighborhood gatherings.
The closure comes at a time when even well-established operators are struggling to navigate rising food and labor costs, high rents, and more cautious consumer spending amid continued economic pressure following the pandemic.
In Minneapolis, restaurant owners say foot traffic has yet to fully recover, making it extremely challenging to remain profitable. Now, the loss marks another setback for neighborhood dining options and the foodservice industry.
D’Amico & Sons confirms closure of final restaurants
D’Amico & Sons will permanently close its last two Minnesota restaurants in Golden Valley and Edina when their leases expire on March 28, 2026.
“We extend a heartfelt thank you to everyone who enjoyed our family’s Italian dishes,” the company said in a statement to KARE 11.
Founded in 1994, D’Amico & Sons opened its original location on Hennepin Avenue in Uptown Minneapolis, serving freshly made Italian dishes. At its peak, the brand operated 12 locations across the Minneapolis area and Naples, Florida. The Uptown flagship closed in 2016, and the rest gradually followed suit over the years.
The brand is part of D’Amico Hospitality, established in 1984 by brothers Richard and Larry D’Amico. Moving forward, the founders are shifting their focus to their Florida restaurants, including Campiello, The Club Room at Campiello, and The Continental, while the catering services in Minnesota will continue under their partner Paul Smith.
While the company did not provide further explanation for the shutdowns, the decision aligns with expiring leases and strategic business shifts.
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Restaurant chains struggle with industry headwinds
D’Amico & Sons is not alone in its struggles. The broader restaurant industry faces mounting challenges nationwide.
Prices for food away from home increased 4% in the 12 months ending January 2026, according to recent U.S. Bureau of Labor Statistics data.
Over the past five years, food and labor costs for the average restaurant have each risen by about 35%, according to the National Restaurant Association.
To offset those surges, menu prices climbed an average of 31% between February 2020 and April 2025, according to U.S. Bureau of Labor Statistics data.
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However, higher prices have coincided with a slowdown in customer traffic. In a National Restaurant Association survey, 60% of restaurant operators reported lower traffic in December 2025, up from 51% in November.
James O’Reilly, a food industry executive with more than 15 years of experience in restaurant marketing, believes that pricing alone won’t fix restaurant traffic.
“In strong economic environments, price increases have historically been tolerated by restaurant guests,” O’Reilly told FSR Magazine.
“Over the past few years, that’s become far more difficult. While headline economic indicators have improved and financial markets have strengthened, many restaurant consumers, particularly in lower- and middle-income brackets, have not experienced the same relief.”
Minneapolis restaurant scene faces ongoing closures
The impact is evident in Minneapolis, where the restaurant sector is facing a crisis amid ongoing closures.
The average number of renewed restaurant licenses fell from 1,678 annually between 2017 and 2019 to about 1,600 between 2022 and 2024, roughly 4.5% below pre-pandemic levels, according to data reported by CBS News.
Local operators like Pedro Wolcott, who recently closed his Guacaya Bistreaux restaurant, say high operating costs and reduced dining frequency are key concerns.
“Lack of skilled labor, rising wages, rising costs of goods. You need to have a lot of foot traffic to be able to pay the rent,” Wolcott told CBS News in an interview. “There’s always going to be openings, restaurants opening all the time, but the amount of closures is unheard of. It’s not normal.”
As economic pressures continue to reshape today’s restaurant industry, D’Amico & Sons’ exit shows how even well-established operators are being forced to adapt, consolidate, or close permanently.
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