Higher costs for utilities, labor, food and alcohol are taking a toll on small restaurant owners, which normally operate on notoriously small profit margins.

Owners of local eateries, from high-end fare to diners, are asking people to “think local first” to help them survive.

“It’s like, ‘When does this end?’” Crystal Lake-based 1776 Restaurant owner Rhienna McClain said. “The whole industry has shifted so much, and I just don’t know how much more we can endure.”

McClain shared her honest perspective in a Facebook post last month about the struggles independent restaurants are facing across the country.

“The cost of food continues to rise, supply chains remain unpredictable, and the margins that once allowed small businesses like ours to thrive have grown increasingly thin,” McClain wrote in the post. “What used to be manageable has, in many ways, become unsustainable.”

‘Worst I’ve ever seen’

McClain, president of the McHenry County chapter of the Illinois Restaurant Association, said this year has been harder for her than the challenges brought by the COVID-19 pandemic.

“March and April ... were the worst I’ve ever seen in my history,” she said. “I’m going into my 10th year.”

Downtown Crystal Lake diner Cafe Olympic owner Rachel Skubiszewski said that although sales and the number of customers remain relatively consistent, it’s not enough to keep up with increasing costs.

“Even though we seem busy – thank God, we’re busy – we’re still struggling due to that part," she said.

Skubiszewski said she and her co-owner have not paid themselves since August 2025.

“We’ve been working for free more than full time, 60 to 70 hours per week,” she said. “We’re doing it to make sure we can pay our bills and make sure we can still pay our team and still continue to operate.”

‘Cost of doing business has risen so rapidly’

Local restaurateur and owner of Hart Alliance Dan Hart said he’s been analyzing sales and inventory every week to make sure his profit margins stay on track.

“The cost of doing business has risen so rapidly, sometimes even when you fit within those parameters, you’re priced in a way that you’re actually losing money because the cost of doing business is so high,” he said.

Hart owns multiple restaurants, including D.C. Cobb’s, which has multiple locations in the McHenry County area; Hart’s Garage in Pingree Grove; Hart’s Saloon in Hebron; and Whiskey Diablo in McHenry. The Woodstock D.C. Cobbs location, which he’d sold to different owners, shut down last year.

Along with rising costs, consumer trends have changed, too. Hart has noticed fewer people are ordering soda. McClain has seen a drop in wine sales. Those drink orders were typically reliable profit items.

Then there’s the unpredictable food market, where essential ingredients like tomatoes and green onions can “triple in price” with little to no notice, Skubiszewski said.

“Every week, it’s something different,” she said.

At Whiskey Diablo, Hart always keeps a close eye on steak prices because the “beef market is tumultuous.”

Hart’s key to longevity in the restaurant industry is adaptability. He isn’t shy about taking certain items off the menu, such as chicken wings, if they become too expensive. He sees the trend at other restaurants as menu options become smaller.

‘Amazon nation’

McClain hopes that her candid post will have people “think local first.” In an age of quick service and convenience that she calls an “Amazon nation,” it’s understandable how people forget the value of a dining experience.

“We’ve got to figure out what we want the next iteration of our world to look like,” she said.

If the cost of living continues at this rate, McClain predicts many more local businesses will collapse under the pressure. That reality already has been seen in downtown Crystal Lake when the independent gift shop Out of the Box closed earlier this year. Owner Nicole Garringer cited devastatingly low sales and unpredictable tariffs as contributing to the closure.

In 2024, Duke’s Inferno in Woodstock closed after operating for about a year. Duke’s Alehouse and Kitchen in downtown Crystal Lake still is operating.

Skubiszewski worries there will be a loss of a sense of community if small businesses go away.

“If all of these small businesses just shutter, what are we known for then in Crystal Lake? A Chili’s and Target?” she said.

Skubiszewski’s lease of the iconic Cafe Olympic expires in about three years. If finances are still this difficult, she said she might need to pivot her business model.

“If it comes down to it’s just me rolling cinnamon rolls and a cashier, and that’s what the economy turns into, I’m still going to be there,” she said.

Skubiszewski, who also owns Black Market Bakery next door, faces extraordinary challenges outside of the economy. Her partner, Dan Vonau, suddenly passed away in February. A GoFundMe was created to help Skubiszewski and her family.

Vonau built the interiors for Black Market Bakery, which Skubiszewski calls his “true legacy.” He was the diner’s go-to handyman. On top of the tragic loss, the diner is falling behind on repairs.

Repairs and maintenance are commonplace for Cafe Olympic, located at 90 N. Williams St., which is more than 125 years old. Since taking over the business in 2019, Skubiszewski has spent more than $1.5 million on the building for things such as plumbing, ceiling repairs, appliance replacements and electrical maintenance.

‘Direct investment in the heartbeat of your community’

After McClain’s Facebook post, she received an outpouring of support thanking her for her honesty and impassioned service. She wrote another post expressing gratitude and hopes that more people will make the conscious decision to choose local first.

“Choosing where you dine, where you gather, where you spend your dollars ... it matters more now than ever,” McCain wrote. “Supporting local businesses isn’t just a feel-good decision. It is a direct investment in the heartbeat of your community. It keeps doors open. It keeps people employed. It preserves the spaces where memories are made.”

Patio season has just begun, which means more tables and more business. 1776 has a nosh garden with small plates, and Cafe Olympic has outdoor tables just across the street from Depot Park, which is set to reopen on June 13.

“We’re grateful to be in this community,” McClain said. “We’re part of this community. We want to stay here.”

On top of expanding summer hours at the diner, Skubiszewski said she’s hoping to grow Black Market Bakery by increasing its cake menu and catering presence.

Despite the challenges, the economy isn’t slowing Hart down. He said he’s actively looking for a second Whiskey Diablo location.

Other than being a patron, people can support their favorite local business by posting on social media and recommending it to friends. Even visiting restaurants for a drink and an appetizer can go a long way, Hart said.

“If you want to have fine-dining establishments in your communities, it’s important that you remember them more than just for special occasions,” he said. “If people don’t support places, they obviously won’t make it.”