Another business in Springfield has felt the long-term impact of food and labor costs rising in the service industry.
For over 39 years, Alexander's Steakhouse in Springfield has been a part of the city's nightlife serving dates through the decades but on Friday morning on the restaurant's Facebook page an announcement came that the service is shutting down for good.
President of Mercedes Restaurants Ron Helms, which owns Alexander’s Steakhouse, cited poor customer retention, inflation of service costs and competition between other steakhouses.
“Our lease was up and we haven’t made money for the past few years so instead of signing another lease for five years,” Helms said. “We decided to close so we wouldn’t continue to lose money.”
More: Popular, upscale Springfield restaurant temporarily closes
More: Alexander’s stakes its reputation on service
In the past, Alexander’s has tried to promote specials at discount while changing menu prices to reach a profit margin to keep the store open but couldn’t reach a profit goal after the bills were paid. According to Helms, the Springfield store was turning negative profit for three years, which the store in Peoria covered in costs, but as prices continued to rise that system wouldn’t have longevity.
The Steakhouse will be open until Feb. 29, 2024, when the space will shut its doors in Springfield for good. As a higher-tier date spot and staple of the dining in the city, Helms apologized to the inconvenience of the business regulars.
“The last thing I wanted to do was close our business,” Helms said. “We’re sorry about closing to our community who’s been loyal to us throughout the years, who we’ve called family.”
Claire Grant reports business with the State Journal-Register: CLGrant@gannett.com; X (Formerly known as Twitter): @Claire_Granted
This article originally appeared on State Journal-Register: Alexander's Steakhouse to close in Springfield after almost 40 years