EL PASO, TEXAS (KFOX14/CBS4) — Small businesses across the nation are facing tough times, and El Paso is no exception, with several announcing their closure, leading to concerns from locals.
Recently, the borderland has been hit with several losses as local businesses announced they will be shutting their doors, with some stating economic issues played a part.
Among those shutting their doors are Malolam Cantina, Matteo’s Mexican Food restaurant, The Baked Bear, and Chihuahua Charlie’s.
In a social media post on Nov. 6, Chihuahua Charlie’s said the “economy had caught up with them” and they are unable to continue operations. The restaurant was open for only a few months.
On Nov. 9, Matteo’s Mexican Food announced in an Instagram post that it would be closing all four locations due to the rising cost of inventory and decline in sales.
Malolam Cantina said on Instagram that it will be closing its location after 11 years, but the space will be handed over to new ownership, who will remodel it and reopen soon.
On Monday, KFOX14/CBS4 spoke with the owner of Chuco Relic, a small business, about her concerns following the announcement of the closures.
“So, yes, when we see other small businesses close, it really hurts because you think, OK, how far am I from that? You know, it’s just scary,” Chelsie Evaldi, owner of Chuco Relic, said.
The closures come on the heels of the longest government shutdown in U.S. history, which saw families lose SNAP benefits and delayed paychecks for federal workers.
According to data from the Congressional Budget Office, the shutdown cost the broader U.S. economy an estimated $7 to $14 billion.
Tom Fullerton, a professor of economics at UTEP, spoke to KFOX14/CBS4 about the impact of the recent government shutdown on the local economy.
“Part of the problem was the government shutdown, especially in a place like El Paso, where we have a higher than average percentage of non-agricultural employment in the form of federal agency payrolls,” Fullerton said on Monday.
Fullerton continued by explaining that delayed paychecks for federal workers disrupted household purchasing patterns, which in turn affected the broader business community.
“So when those workers all of a sudden found two consecutive paychecks that were delayed, it played havoc on their household purchasing patterns. And that filtered out into the business community at large,” Fullerton said.
While locals remain concerned over the state of small businesses in the borderland, Mayor of El Paso, Renard Johnson, said he sees El Paso’s economic outlook remaining strong and continuing to see new small businesses opening across the borderland.
“Economic development is one of my top priorities as mayor, and my office remains focused on supporting small businesses, streamlining processes, and attracting the types of industries that create long-term opportunity and prosperity for all El Pasoans. Anytime a local business closes, it affects more than our economy; it impacts business owners, employees, and families across our city. We’re grateful for the contributions these establishments made to our community, and we take their closures seriously,” Johnson said in a statement to KFOX14/CBS4 on Monday.
He added, “At the same time, El Paso’s economic outlook remains strong. We continue to see new small businesses opening across the city, along with sustained growth in advanced manufacturing, aerospace, logistics, healthcare, and tourism. These investments reflect a resilient, diverse economy and our commitment to building a stronger future for El Paso.”
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