Struggling economy forces restaurants to close, says Glenashley businesswoman
Valjee cites the Covid-19 pandemic as one of the reasons dining out is less popular these days.
THE restaurant industry is one of the hardest-hit sectors in the economy following the Covid-19 pandemic, the July 2021 unrest and the devastating 2022 floods. The impact of these life-changing events, coupled with various other factors, has crippled several businesses.
Popular eateries such as La Spiaggia and Julio’s Umhlanga along uMhlanga promenade and Splat in Glenashley were among those affected by a ripple effect of these events.
Founded by qualified chef Neha Valjee, Splat opened with a unique fusion concept that initially attracted a wave of enthusiastic diners.
“When we first started, everyone wanted to try it out. The first six to eight months were great. It got to a point when we were just breaking even. Then we noticed our customers declining in late 2024,” Valjee said.
Determined to create an exceptional dining experience, Valjee and her team invested heavily in the business, adding a bar and hosting deejays to enhance the atmosphere. Despite these efforts, the broader economic downturn significantly impacted her efforts.
“People don’t dine out as they used to before. In my opinion the Covid-19 pandemic has changed the way people prefer to dine. They would rather order in instead of go out to a restaurant where they would have to purchase alcoholic drinks and tip a waiter 10% of the bill,” Valjee said.
Rising inflation and operational costs also made it difficult to sustain profitability.
“We made the economical decision to close because we were not prepared to lose any more money,” she added.
At its peak Splat employed approximately 12 permanent staff members and two to three casual workers.
The restaurant officially closed in March 2025, prompting an outpouring of disappointment from patrons who sent thousands of messages and calls lamenting the loss.
Beyond financial concerns and changed consumer behaviour, Valjee cited another reason for the closure.
“Splat’s unique fusion concept, while innovative, created some confusion among diners unfamiliar with its approach. If people want Chinese, they go to a Chinese restaurant and not to a fusion restaurant offering dishes from around the world,” she said.
“This was a hard decision, but it was necessary. We appreciate everyone who supported us along the way,” she said.
The tourism and restaurant industries in Durban and across KwaZulu-Natal continue to face significant challenges in the wake of multiple crises that have struck the region over the past few years.
Recognising these challenges, the Durban Chamber of Commerce and Industry NPC remains committed to reviving the tourism industry.
“Through its tourism workstream in the PeWG (Presidential eThekwini Working Group) and the Tourism Business Forum, the chamber is actively working to promote tourism as a key economic driver for the province and eThekwini Municipality. The forum is also focused on identifying barriers to growth within the industry and implementing strategies to foster sustainable development,” said Palesa Phili, CEO, Durban Chamber of Commerce and Industry NPC.
Jeannie Sarno, chairperson of the Umhlanga Tourism Committee, commented on the current situation, noting that several restaurants have closed in recent months.
“We’ve seen the closure of a few restaurants recently, mainly due to the expiration of lease agreements in municipal-owned buildings, with some businesses opting to relocate. While we bid farewell to some establishments, we also look forward to welcoming new ones,” she said,
Sarno emphasised the importance of maintaining high standards of service delivery to attract and retain visitors.
“It is essential for tourism establishments to ensure top-tier service, offer fresh produce, and maintain professional staff trained in customer service and food handling,” she added.
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