Rising costs challenge local restaurants as new owners navigate tough stretch

PALM SPRINGS, Calif. (KESQ) - The restaurant scene in Palm Springs is experiencing both promising new beginnings and sobering realities, as rising costs and recent closures continue to challenge the industry.

Hunny’s Restaurant and Bar, located in the heart of downtown Palm Springs, has officially opened its doors. For owner Precious Dykstra, the moment is filled with excitement and anticipation. But opening a new restaurant isn’t without its hurdles. For Dykstra, one of the biggest early challenges is visibility.

“I just think opening a new restaurant is always challenging. Getting the word out there, letting people know that we’re here is probably the first challenge.”

Precious Dykstra, Hunny's Restaurant & Bar

Hunny’s now occupies the former space of Grand Central — a visible reminder of how tough the restaurant business can be. Council member Jeffrey Bernstein noted that rising costs are straining restaurant owners throughout the city.

“Restaurants are having a pretty tough time in general just with the cost of everything rising so fast and its food, staffing and rents. But the costs of good has gone up significantly so it’s a tough business.”

Jeffrey Bernstein, Palm Springs City Council Member

Another recent closure includes Sonny’s, an establishment in the Arenas District. Still, Bernstein says the city overall is seeing strong business activity and emphasizes that local support remains a critical factor in a restaurant’s success.

"From a business point of view, we really do understand the struggles local businesses are going through... From the city council point of view, we see a lot of growth and economic opportunity. There's lots of places that are opening up and other restaurants looking for space."

Jeffrey Bernstein, Palm Springs City Council Member

While the road ahead may be uncertain, new owners like Dykstra are holding onto optimism — bolstered by a community that believes in their potential.

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