Why Are Vegan Restaurants Closing? A Look at Baltimore, Delaware, and Philadelphia’s Plant-Based Crisis

A Year of Closures in Vegan Dining: What’s Really Happening?

Over the past year, the plant-based dining scene across Baltimore, Wilmington, and Philadelphia has experienced a wave of painful closures. Iconic establishments such as Baltimore’s soulful Grub Factory, Wilmington’s Drop Squad Kitchen, and Philadelphia’s trailblazing Blackbird Pizzeria have shut their doors, leaving communities not only grieving the loss of dining options but also mourning spaces that were cultural and community mainstays.

These closures are particularly devastating because these restaurants represented more than food. They were symbols of sustainability, community, and progress. Many served as hubs for activism, culture, and camaraderie, bringing people together over shared values. Their absence now underscores the vulnerabilities vegan restaurants face and raises an urgent question: What will it take to sustain these vital spaces?

*Stromboli from the now closed Double Zero in Baltimore.*

The Ones That Have Closed for Good

Amid these pressures, beloved eateries have fallen like dominoes. In Baltimore, Grub Factory on W. Mulberry Street once served up veganized soul-food favorites, while NuVegan in Charles Village brought hearty plant-based comfort food to the college crowd. Gangster Vegan in Federal Hill’s Cross Street Market briefly attracted a health-focused clientele, but dwindling foot traffic and rising rent spelled trouble. Liora and Double Zero, two high-profile spots by chef Matthew Kenney at Baltimore’s Inner Harbor, cited insurmountable operational costs and shut their doors in 2023.

Wilmington saw the loss of Go Vegan Philly in late 2023 and Drop Squad Kitchen shortly after, each of which had a devoted following for their creative twists on soul food. Philadelphia, long a vegan paradise, also took some heavy hits. Blackbird Pizzeria closed in 2022 after more than a decade of redefining comfort food, while Algorithm in Kensington and Primary Plant Based in Northern Liberties both announced closures in 2024. All the Way Live Cafe in Germantown, known for bridging the gap between raw vegan and comfort cooking, followed suit, underscoring the fragility of even well-loved establishments.

The Numbers: Why Are Vegan Restaurants Struggling?

The challenges facing vegan restaurants have been particularly acute. Across the broader restaurant industry, about 15–20% of establishments have permanently closed since the pandemic began. For vegan restaurants, however, the closure rate climbs higher, estimated at 25–30%.

One major issue is the cost of ingredients. Vegan establishments rely heavily on specialty items like small-batch nut-based cheeses, artisanal plant proteins, and organic produce. These ingredients are significantly more expensive than conventional meat and dairy, leaving vegan restaurants with consistently higher food costs. When inflation drives prices even higher, the financial strain becomes untenable.

Compounding these issues are cultural perceptions. While veganism has gained traction in recent years, it is still seen in many communities as either niche or a luxury lifestyle, limiting the potential customer base.

*The Best Vegan in Delaware was Go Vegan Philly.*

The Economic Squeeze: Four Years of Challenges

Since 2020, vegan restaurants have been navigating a relentless series of economic hurdles. Pandemic-related restrictions forced many to pivot to takeout and delivery models, which are often less profitable for plant-based establishments that thrive on in-person dining experiences. As restrictions eased, new challenges emerged. Inflation drove up the cost of essentials like organic produce and plant-based proteins. Staffing shortages became a persistent issue, leaving kitchens understaffed and employees overworked.

In cities like Baltimore and Philadelphia, rising real estate costs have made it harder for small businesses to sustain operations. Many restaurateurs took out loans during the pandemic to stay afloat, only to face steep repayment costs as interest rates climbed. This combination of rising costs and shrinking profit margins created an environment where closures became inevitable for many beloved establishments.

Cultural and Community Challenges

The struggles of Black-owned vegan restaurants, in particular, highlight how cultural and systemic barriers intersect with economic challenges. Restaurants like Drop Squad Kitchen, Go Vegan Philly, and All the Way Live Cafe reimagined soul food through a plant-based lens, bridging cultural traditions with sustainable dining. These establishments were more than eateries; they were cultural beacons, hosting health workshops, art exhibits, and community events. However, these dual roles often stretched their resources thin.

Cultural perceptions of veganism as inaccessible or unaffordable further complicate matters. While many Black-owned vegan spots have successfully “veganized” traditional dishes like fried “chicken” and mac and “cheese,” the high cost of specialty ingredients for these recipes often forces menu prices upward. This can create the perception that veganism is out of reach for many diners, limiting broader appeal.

Su Xing House, a former Vegetarian Restaurant, now serves meat.

Should Vegan Restaurants Serve Meat?

As financial pressures mount, some vegan restaurants have made the controversial decision to add animal products to their menus. Los Angeles’ Sage Vegan Bistro, Philadelphia’s Su Xing House, and even The Cheezy Vegan—now rebranded as Chef Reeky’s Cafe & Juice Bar—have taken this step. For many plant-based diners, this shift feels like a betrayal of the core values that define vegan dining. Vegan restaurants are often more than businesses; they are ideological spaces that promote compassion, sustainability, and health.

However, for restaurant owners, the decision to serve meat or dairy is often a matter of survival. Adding animal products can attract a wider audience, boosting revenue enough to keep the doors open. This raises difficult questions: Can a restaurant maintain its identity while making compromises to survive? Or does such a pivot risk alienate its core customer base?

What Can Be Done to Help?

There are steps that both diners and restaurant owners can take to ensure the survival of vegan establishments. For diners, the most direct way to support these businesses is to patronize them regularly. Sharing experiences on social media, leaving glowing reviews, and advocating for policies that provide funding to small businesses can also make a significant impact.

For restaurant owners, innovation and collaboration are key. Diversifying menus with global flavors or allergen-friendly options can attract new customers. Partnering with local farmers and artisans can help reduce ingredient costs, while cross-promotions with other small businesses can drive traffic. Leveraging available grants, mentorship programs, and pro-bono legal services can provide critical financial and operational support.

Looking Ahead with Hope

Despite the challenges, the plant-based movement is far from defeated. New ventures continue to emerge, fueled by the ethical, environmental, and health principles that underpin veganism. These establishments are adapting to the lessons of the past, embracing innovative business models, and finding ways to reach broader audiences.

Collaboration will be essential. Communities, governments, and the restaurant industry must work together to create a more supportive ecosystem for vegan businesses. Cities could offer property tax abatements, rent subsidies, or reduced licensing fees for sustainable eateries. Meanwhile, diners can play their part by championing these establishments and fostering a culture of support.

The closures of places like Blackbird Pizzeria and The Greyhound Café serve as stark reminders of the fragility of this industry. But they also highlight the creativity, passion, and resilience of the plant-based community. By rallying around these businesses and ensuring they have the resources they need, we can help them not just survive but thrive.

Grants, Resources, and Pro Bono Services for Vegan Restaurants

USDA Local Food Promotion Program (LFPP): Supports businesses that promote local food systems, ideal for vegan restaurants relying on organic and local produce.

Minority Business Development Agency (MBDA): Provides grants and technical assistance to minority-owned businesses, addressing systemic funding inequities.

Small Business Innovation Research (SBIR) Program: Funds innovative small businesses, including those experimenting with sustainable culinary practices.

State-Specific Grants

Delaware EDGE Grants: Offers up to $100,000 for STEM businesses and $50,000 for non-STEM companies.

State Small Business Credit Initiative (SSBCI) - Delaware: Helps small businesses access capital; Delaware has $60.9 million allocated to various programs.

Maryland Small Business Grants: Offers more than $11.8 billion in funding to support small business growth and recovery.

Pennsylvania Small Business Grants: Provides over $27.3 billion in funding, including resources for restaurants and food-related businesses.

Regional and Local Programs

MARISA Small Grants Program: Supports non-profits and organizations serving underserved communities in the Mid-Atlantic.

Sustain & Serve NJ Program: Purchases meals from local restaurants to support their operations; recently awarded $20 million in grants.

Restaurant Strong Grant: Provides funding to small restaurants; over $1 million has been distributed to 140 establishments nationwide.

Pro Bono Legal Services

Delaware Volunteer Legal Services (DVLS): Offers free legal assistance to low-income individuals and small businesses in Delaware.

Maryland Center for Legal Assistance (MCLA) Pro Bono Program: Provides legal advice and assistance to self-represented individuals in Maryland.

List of Pro Bono Legal Service Providers: A nationwide directory maintained by the U.S. Department of Justice, including services in Delaware, Maryland, and Pennsylvania.

Additional Resources

Stand By Me Minority Small Business Program: Offers financial coaching and support to minority-owned small businesses in Delaware.

Office of Supplier Diversity - Delaware Division of Small Business: Provides assistance to minority-owned, woman-owned, and veteran-owned businesses, including help with business planning and accessing capital.

Spark Grant for Minority-Owned Small Businesses in Delaware: Offers up to $25,000 for energy efficiency improvements for diverse small businesses.

Delaware Small Business Development Center (SBDC): Provides resources and support for small businesses, including recent funding to assist minority and woman-owned businesses.