Author: Sarah Sharkey

Washington Attorney General, Nick Brown, recently announced a lawsuit against RealPage and several landlords in the state. The lawsuit alleges that RealPage, a Texas software company that provides tools to landlords to determine rental rates and other lease terms, used sensitive data from landlords to keep rent prices artificially high.

“RealPage’s unfair practices are cheating renters and pricing families out of stable housing,” said Brown in a recent press release.

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Brown continued, “Washington is facing a housing crisis and we must respond with every available tool.”

RealPage isn’t a stranger to lawsuits. In fact, the U.S. Justice Department sued RealPage for similar reasons, including the algorithmic pricing scheme, late in 2024.

The company faces similar lawsuits in North Carolina, California, Colorado, Connecticut, Minnesota, Oregon and Tennessee.

For its part, RealPage provided K5 with a statement, refuting the claims in the suit, calling them "devoid of merit," adding its "revenue management software is purposely built to be legally compliant and has always used data legally and responsibly."

Washington’s case

Many landlords used RealPage to help determine appropriate rental prices for apartments.

According to the lawsuit, Washington property managers used this software to price out an estimated 800,000 leases in the state between 2017 and 2024.

As the AG’s investigation revealed, RealPage’s pricing software uses nonpublic, competitively sensitive market information. In general, the algorithm tended to suggest raising rents. For some renters, the suggestions led their landlords to impose steep rent increases.

Chris Vialpando, a renter in Seattle’s Lower Queen Anne neighborhood, experienced a 50% rent increase after his landlord started using RealPage to price rental units.

“I was almost homeless for a short second there because I really had to dig deep to figure out how I was going to do it,” Vialpando told K5.

His story is one of many that sparked the AG’s office to take action.

The complaint alleges that based on participating landlords and their rivals’ competitively sensitive information, these landlords were able to avoid having to compete independently to attract renters based on pricing, discounts, concessions, lease terms and other lease terms — as they would have to in a free market.

It also alleges that RealPage used this scheme and its “substantial data trove” to maintain a monopoly in the commercial revenue management software market.

Finally, the investigation found that RealPage’s rental price suggestions generally lead to higher costs for renters.

Brown’s release alleges the RealPage tool violates Washington’s Consumer Protection Act, which is designed to keep the state free of unfair and deceptive business practices.

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How price fixing impacts renters

The crux of the price-fixing scheme is the fact that landlords shared sensitive data with RealPage. In turn, landlords used the tool knowing that other landlords contributed sensitive data to the algorithm.

One potential client of RealPage said, “I always liked this product because your algorithm uses proprietary data from other subscribers to suggest rents and term. That’s classic price fixing.”

A big red flag is that the RealPage software makes it difficult for a landlord to avoid taking the software’s suggestions.

Instead, it suggests accepting the price recommendations automatically. If a landlord using the software wanted to charge a different rate, they must provide a reason to the company.

Additionally, RealPage recommended landlords enforce 13-month rental terms. This long timeline prevents too many units from hitting the market at the same time, which helps keep rent rates higher.

From a landlord’s point of view, the tool offers an opportunity to charge more for rent. But colluding with other landlords isn’t legal because it doesn’t allow for the market forces of supply and demand to settle at a reasonable and fair market rate.

As of writing, the average rent for a 699-square-foot apartment in Seattle is $2,252. Within the state, the Washington State Standard reports approximately one-third of households spend more than 30% of their household income on housing costs, making them “cost-burdened.”

Unfortunately, this pressure can put many renters into unstable housing situations that sometimes lead to homelessness.

While the impacts of artificially high rents based on RealPage recommendations initially only impacted the renters unlucky enough to have a landlord using RealPage, it’s likely the higher rents rippled out into the marketplace.

With that, these actions may have gone beyond displacing individual families to put additional pressure on housing affordability and possibly worsened the housing crisis.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It’s no secret that finding affordable housing options in California is an ongoing struggle for many residents.

In an effort to alleviate this ongoing housing crisis, the state recently passed new laws designed to encourage building more homes at a faster pace. However, not everyone likes the new rules, including the residents of Corona, California.

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Some are furious about the impending development of 38 housing units by Tricon Residential, according to KCAL News.

Prior to the new state laws, Corona City Council approved the company building 19 units in the housing development. But, the recent laws that went into effect allowed Tricon Residential to double the number of accessory-dwelling-units (ADUs) built within the same lot.

At this point, the City Council can’t do much. Essentially, the state law allows for this change to the proposed development with little recourse for the locals.

“I don’t want a cracker box across the street,” local resident Paulette Perry said in an interview with KCAL News. “I want something that looks like our neighborhood.”

Why Corona residents and leaders are pushing back

The location of the proposed two-story housing development is nestled into a neighborhood filled with single-family homes. Most of which were built in the 1960s and 1970s, which gives the neighborhood a classic look.

“They’re overpopulating our little area here,” Perry told KCAL News. “You’re not building to our neighborhood, you’re building way too high."

Perry’s petition to stop the development from moving forward amassed 172 signatures. But even with this upswell of community support against the additional housing units, there’s little the City Council can do.

Tom Richins, a Corona City Council member, claims the new state laws keep the city’s hands tied.

"You either vote their way, or the city faces lawsuits," he told KCAL. “It’s just turned into: We need more houses, however you can jam pack ’em in, the state would like you to do that."

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New developments and housing costs

Because of the state laws recently introduced, it’s likely the housing project will keep moving forward with 38 total units.

Richins told KCAL News that developers can now rake in extra cash under the guise of creating affordable housing.

These new housing units won’t be available for sale. Instead, new residents of this built-to-rent community have the opportunity to rent out the units for a monthly rate similar to a mortgage payment.

With Tricon properties rented out in the mid-to-high $3,000 per month range, these rent-ready houses aren’t necessarily an affordable option for everyone. Especially when compared to the median gross rent of housing in the area at $2,136.

Since the number of units doubled, it seems likely that Tricon Residential will stand to earn significantly more in rental income by creating additional units.

Tricon Residential’s Corona project is being developed in partnership with Foremost Pacific Group and Woodbridge Pacific Group.

The intent of this built-to-rent community is to increase access to single-family living accommodations for families who can’t afford to buy a place but can afford to rent a space.

“We are proud to partner with Tricon on this much-needed community, which will expand rental housing opportunities for families in Corona,” said Andrew Murphy, Chief Investment Officer at Foremost Pacific Group in an interview with Yield Pro. “Tricon Corona is thoughtfully designed to provide residents with high-quality homes in a great neighborhood, with the convenience of professional management and access to great local amenities.”

According to the Public Policy Institute of California, more than 50% of all adults say housing costs are a financial strain. With average home prices in Corona sitting at $772,888 and median household incomes sitting at $106,438, it could take a significant boost to housing supply to bring prices down to a level that residents can afford.

Generally, experts recommend not spending more than 28% to 30% of your gross income on housing. For a household with a take-home income of $106,000, that means they can spend roughly $2,473 per month on housing costs, like a mortgage, to stay within this guideline. That’s significantly lower than the potential monthly rental costs of this new housing development.

Unfortunately for the concerned Corona citizens, the project seems unlikely to stall. But it’s unclear if built-to-rent communities will solve the housing crisis in California.

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Rent prices in San Francisco’s Mission District have remained high above the national average for many years. On average, it costs $3,397 to rent a place to call home in San Francisco. And for business owners, rent prices have been a major strain for years.

But for some businesses, a recent rash of rent hikes represents the straw that broke the camel’s back. In particular, Aslam’s Rasoi on Valencia Street currently faces a 52% rent increase starting in May, according to a CBS News report.

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The significant spike in the family-run restaurant’s operations costs has staff considering whether or not it’s possible to continue serving up the dishes that have been a staple in the community for almost 20 years.

Restaurants facing challenges on multiple fronts

Aslam’s Rasoi opened its doors in 2006. Although it’s survived many ups and downs in the economy over the last 20 years, operating a restaurant in a post-COVID world makes staying afloat more challenging than ever before.

CBS News reported that on top of the 52% rent hike the restaurant is facing as of May, co-owner Sonia Aslam says slower sales and higher ingredient costs influenced her family’s decision to close the restaurant in its current location.

Since the pandemic, Aslam told Mission Local, the restaurant started operating with a scaled-down crew of just a few family members.

On top of higher operations costs, Aslam Rasoi has seen foot traffic decline. Of course, some of this decline is related to the shifts in diner habits after 2020. But nearby traffic on Valencia Street has decimated foot traffic for Aslam Rasoi and other businesses in the neighborhood.

In recent months, the restaurant has remained open with financial support from family members. When the lease is up, the owners must decide whether to close for good or find another location.

“It’s just sad seeing the business struggling to this extent,” said Aslam. “We’ve tried to keep the restaurant going for all these years. We sacrificed all our time. We put our love into the business.”

Aslam, whose father-in-law opened the business in 2006, said the restaurant’s best hope would be an uptick in business over the next month or so. A bit more business would help the family feel more confident about moving to another, more affordable location.

And if they do reopen, they’ll likely join the many restaurants offering limited hours and a pared-down menu to maintain profitability during a tough climate.

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Shifting dining and consumer trends impact business

The restaurant industry has always been a competitive business. But since the pandemic, dining habits have shifted dramatically. Consumer habits show people are generally opting for more take-out, drive-through and online ordering over in-person dining experiences.

“In the food service industry, the ways people order has shifted mostly to non-human contact or untact methods, such as online orders and drive-through orders,” according to a 2021 study.

Restaurant owners trying to keep up with the trend of less contact might choose to offer an easier way to order food online. Additionally, they might put more staffing behind takeout orders to keep pace with demand.

In addition to changing preferences, inflation and a rising cost of living put pressure on household budgets. As diners face financial stress, many may cut back on discretionary purchases, like dining out.

To keep diners engaged, restaurants might focus on providing unique dining experiences that people want to share online and investing in customer loyalty programs to keep regular customers coming back for more in spite of rising costs.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It’s undeniable that AI-powered technology is picking up steam in many sectors of the economy — although that’s not exactly music to everyone’s ears.

According to a recent Pew Research Center survey, 56% of AI experts believe the emerging technology will have a positive impact on the U.S. within the next 20 years. In contrast, just 17% of U.S. adults share that view.

Of the AI experts surveyed, 73% believe AI will have a positive impact on how people do their jobs. However, just 23% of Americans think AI will impact how they do their jobs in a positive way.

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While it’s clear that not everyone is excited about how AI might affect the economic landscape, it does seem likely that AI will lead to significant changes in some fields. But, the survey also highlighted that both AI experts and U.S. adults agree that some jobs, like mental health therapy, might not be impacted.

The study took opinions from 1,013 AI experts, who work with (or research) AI professionally, into account.

Additionally, a separate survey gauged the opinions of 5,410 U.S. adults. Below is a look at the jobs at risk of disappearing in the decades to come.

Cashiers

For many, the idea that cashiers might be on their way out due to AI likely doesn’t come as a surprise. After all, most of us have encountered a self-checkout situation that didn’t involve a paid employee ringing up our items.

In this arena, both AI experts and U.S. adults agree that cashiers are most at risk, with 73% of both groups saying this job will be impacted.

Since this job is already endangered, signs of this vanishing job are everywhere. For example, Taco Bell has eliminated the task of taking orders for employees at most locations through AI technology. Additionally, Amazon has been rolling out cashier-less stores.

Journalists

According to the study, 60% of AI experts and 59% of the public consider journalist jobs at risk.

The journalism industry has undergone significant changes in recent years. In fact, according to the Brookings Institution, the U.S. has already lost two-thirds of its newspaper journalist jobs in the last 20 years.

And with generative AI improving by the minute, many seem to think that the job title of journalist may become a thing of the past entirely in the not-too-distant future.

Software engineers

Software engineers currently enjoy a lucrative position, a median pay of $130,160 per year, according to the U.S. Bureau of Labor Statistics.

However, the Pew Research Center study found that 50% of AI experts think the software engineering field is at risk due to AI.

However, it’s worth noting that the other half of AI experts surveyed didn’t think software engineer jobs were at risk. Since the experts seem to be split on this job, only time will tell how it plays out.

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Factory workers

More than half (60%) of AI experts think that the jobs of factory workers are at risk due to the emerging technology.

For many, this line of thought makes sense. After all, as AI technology improves, it might be able to handle some of the repetitive tasks that factory workers face on a regular basis. With that, 67% of the public agrees that these jobs are at risk.

As AI improves the efficiency of factory operations, humans in charge of fine-tuning the mechanics might still prove vital to an organization.

Truck drivers

Of the AI experts surveyed, 62% think that truck driving jobs are at risk. That’s a sharp difference from the public, of which only 33% thought that truck drivers would be impacted by this emerging technology.

As driverless vehicle technology improves, largely spurred on by AI, it’s possible that trucks will no longer need a driver to make deliveries. Self-driving trucks already exist, they just haven’t been approved for regular road use yet. But some companies, like Pittsburgh-based Aurora Innovation, hope to have thousands of self-driving trucks on the roads within the next three to four years, reports The Associated Press.

Although AI will have an impact on jobs in the future, remember that experts are overwhelmingly in agreement that AI technology will have a positive impact on the U.S. in the next several decades. But, only time will tell how this new technology plays out.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

As of January, over 6% of auto loans were delinquent by 60 days or more, according to Fitch Ratings. With the recent trend of vehicle prices rising and car payments surging, the outbreak of delinquencies might have only been a matter of time. But this uptick offers an insight into the fact that many households are struggling in the current economic climate.

In December 2022, Kelley Blue Book data shows new car buyers paid an average of $49,958 for a new vehicle. Although the market has softened slightly since then, average car buyers are still spending an average of $49,740 to purchase a new vehicle.

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Even if a driver opts for a used car, this could still put pressure on their budget. With KBB placing the average used car price at $25,565, finding an affordable used car can easily present a challenge.

Beyond the vehicle itself, the current high interest rate environment can make financing that car expensive. Once borrowers lock in a high monthly payment, keeping up with that on top of other household expenses strains the budget. In some households, vehicle costs could push budgets to the breaking point and ultimately default on their car loan.

Understanding the surge in car loan deficits

Car loan defaults are on the rise, reaching an all-time high. Under the hood of this rising issue, many factors tie into the situation.

First off, car prices are higher than they used to be. And not only are they more expensive, average monthly payments have gone up too. In the third quarter of 2024, the average monthly payment for a new car was $737 and drivers had an average loan term of 68 months. For a used car, the average monthly payment was $520 with an average term of 67 months. In either situation, that’s a significant amount of funds to dedicate to vehicle financing each month.

Of course, some borrowers pay less than the average. But many drivers pay much more than the average. For example, Alejandra Gaxiola told WTAJ she bought her EV for $60,000 two years ago and faces a payment of almost $1,000 per month.

“Almost a thousand dollars for our car is just, you know, it’s a little crazy,” Gaxiola said to WTAJ.

In addition to the purchase costs, other vehicle-related costs are putting pressure on household budgets. Notably, car insurance costs have climbed in recent years.

Beyond car-related costs, rising housing prices and grocery bills put pressure on household budgets from multiple angles. When forced to choose between housing, groceries and a vehicle payment, drivers may opt to let their vehicle loan slide into default in order to stay afloat in other areas.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to manage auto loans responsibly

Typically, the best time to start responsibly managing your auto loan is before you sign on the dotted line. Instead of dealing with the budgetary fallout after you buy a vehicle, making the effort to set a realistic budget and keep your vehicle costs as low as possible upfront can save you significant trouble down the road.

One way to stay on budget is to opt for a vehicle without all of the bells and whistles. According to Kelley Blue Book, sales of vehicles priced above $80,000 have recently soared to 5.6% of car purchases. When financing a vehicle, consider making it a point to spend no more than what you need on a vehicle to suit your needs. For example, your family might only need a sedan to get around instead of a full-sized, luxury SUV. Making trade-offs upfront can protect you from financial stress later.

Although auto loan defaults are on the rise, that doesn’t necessarily mean you are in danger of default. But if you’re struggling to make ends meet while juggling a car payment, consider refinancing.

A refinance offering a combination of lower interest rates and a longer loan term could slash your monthly payment, which allows you to keep the car with less financial stress each month. However, keep in mind that means you’ll likely end up paying more for longer. Ideally, you can find some room in your budget elsewhere to afford your payments.

And if possible, consider making extra payments when you can afford it. Paying off your loan ahead of schedule can free up space in your monthly budget and potentially save you thousands in interest charges. If possible, put extra money toward your remaining balance to eliminate your car loan as soon as possible. (Just make sure you’re not incurring a prepayment penalty. You’ll want to check the terms of your loan.)

Throughout your loan, commit to making on-time payments. If you might forget about a monthly bill, consider setting up automatic payments to simplify your life. In some cases, lenders offer a rate discount when you set up autopay.

Finally, communicate with your lender when you need to. If you run into a rough patch financially, communicate that issue to your lender as soon as possible. Depending on the situation, the lender might offer you a reprieve while you get back on your feet.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Rent prices in San Francisco’s Mission District have remained high above the national average for many years. On average, it costs $3,397 to rent a place to call home in San Francisco. And for business owners, rent prices have been a major strain for years.

But for some businesses, a recent rash of rent hikes represents the straw that broke the camel’s back. In particular, Aslam’s Rasoi on Valencia Street currently faces a 52% rent increase starting in May, according to a CBS News report.

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The significant spike in the family-run restaurant’s operations costs has staff considering whether or not it’s possible to continue serving up the dishes that have been a staple in the community for almost 20 years.

Restaurants facing challenges on multiple fronts

Aslam’s Rasoi opened its doors in 2006. Although it’s survived many ups and downs in the economy over the last 20 years, operating a restaurant in a post-COVID world makes staying afloat more challenging than ever before.

CBS News reported that on top of the 52% rent hike the restaurant is facing as of May, co-owner Sonia Aslam says slower sales and higher ingredient costs influenced her family’s decision to close the restaurant in its current location.

Since the pandemic, Aslam told Mission Local, the restaurant started operating with a scaled-down crew of just a few family members.

On top of higher operations costs, Aslam Rasoi has seen foot traffic decline. Of course, some of this decline is related to the shifts in diner habits after 2020. But nearby traffic on Valencia Street has decimated foot traffic for Aslam Rasoi and other businesses in the neighborhood.

In recent months, the restaurant has remained open with financial support from family members. When the lease is up, the owners must decide whether to close for good or find another location.

“It’s just sad seeing the business struggling to this extent,” said Aslam. “We’ve tried to keep the restaurant going for all these years. We sacrificed all our time. We put our love into the business.”

Aslam, whose father-in-law opened the business in 2006, said the restaurant’s best hope would be an uptick in business over the next month or so. A bit more business would help the family feel more confident about moving to another, more affordable location.

And if they do reopen, they’ll likely join the many restaurants offering limited hours and a pared-down menu to maintain profitability during a tough climate.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Shifting dining and consumer trends impact business

The restaurant industry has always been a competitive business. But since the pandemic, dining habits have shifted dramatically. Consumer habits show people are generally opting for more take-out, drive-through and online ordering over in-person dining experiences.

“In the food service industry, the ways people order has shifted mostly to non-human contact or untact methods, such as online orders and drive-through orders,” according to a 2021 study.

Restaurant owners trying to keep up with the trend of less contact might choose to offer an easier way to order food online. Additionally, they might put more staffing behind takeout orders to keep pace with demand.

In addition to changing preferences, inflation and a [rising cost of living]( put pressure on household budgets. As diners face financial stress, many may cut back on discretionary purchases, like dining out.

To keep diners engaged, restaurants might focus on providing unique dining experiences that people want to share online and investing in customer loyalty programs to keep regular customers coming back for more in spite of rising costs.

What to read next

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Trump warns his tariffs will spark a ‘disturbance’ in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

As of January, over 6% of auto loans were delinquent by 60 days or more, according to Fitch Ratings. With the recent trend of vehicle prices rising and car payments surging, the outbreak of delinquencies might have only been a matter of time. But this uptick offers an insight into the fact that many households are struggling in the current economic climate.

In December 2022, Kelley Blue Book data shows new car buyers paid an average of $49,958 for a new vehicle. Although the market has softened slightly since then, average car buyers are still spending an average of $49,740 to purchase a new vehicle.

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Even if a driver opts for a used car, this could still put pressure on their budget. With KBB placing the average used car price at $25,565, finding an affordable used car can easily present a challenge.

Beyond the vehicle itself, the current high interest rate environment can make financing that car expensive. Once borrowers lock in a high monthly payment, keeping up with that on top of other household expenses strains the budget. In some households, vehicle costs could push budgets to the breaking point and ultimately default on their car loan.

Understanding the surge in car loan deficits

Car loan defaults are on the rise, reaching an all-time high. Under the hood of this rising issue, many factors tie into the situation.

First off, car prices are higher than they used to be. And not only are they more expensive, average monthly payments have gone up too. In the third quarter of 2024, the average monthly payment for a new car was $737 and drivers had an average loan term of 68 months. For a used car, the average monthly payment was $520 with an average term of 67 months. In either situation, that’s a significant amount of funds to dedicate to vehicle financing each month.

Of course, some borrowers pay less than the average. But many drivers pay much more than the average. For example, Alejandra Gaxiola told WTAJ she bought her EV for $60,000 two years ago and faces a payment of almost $1,000 per month.

“Almost a thousand dollars for our car is just, you know, it’s a little crazy,” Gaxiola said to WTAJ.

In addition to the purchase costs, other vehicle-related costs are putting pressure on household budgets. Notably, car insurance costs have climbed in recent years.

Beyond car-related costs, rising housing prices and grocery bills put pressure on household budgets from multiple angles. When forced to choose between housing, groceries, and a vehicle payment, drivers may opt to let their vehicle loan slide into default in order to stay afloat in other areas.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to manage auto loans responsibly

Typically, the best time to start responsibly managing your auto loan is before you sign on the dotted line. Instead of dealing with the budgetary fallout after you buy a vehicle, making the effort to set a realistic budget and keep your vehicle costs as low as possible upfront can save you significant trouble down the road.

One way to stay on budget is to opt for a vehicle without all of the bells and whistles. According to Kelley Blue Book, sales of vehicles priced above $80,000 have recently soared to 5.6% of car purchases. When financing a vehicle, consider making it a point to spend no more than what you need on a vehicle to suit your needs. For example, your family might only need a sedan to get around instead of a full-sized, luxury SUV. Making trade-offs upfront can protect you from financial stress later.

Although auto loan defaults are on the rise, that doesn’t necessarily mean you are in danger of default. But if you’re struggling to make ends meet while juggling a car payment, consider refinancing.

A refinance offering a combination of lower interest rates and a longer loan term could slash your monthly payment, which allows you to keep the car with less financial stress each month. However, keep in mind that means you’ll likely end up paying more for longer. Ideally, you can find some room in your budget elsewhere to afford your payments.

And if possible, consider making extra payments when you can afford it. Paying off your loan ahead of schedule can free up space in your monthly budget and potentially save you thousands in interest charges. If possible, put extra money toward your remaining balance to eliminate your car loan as soon as possible. (Just make sure you’re not incurring a prepayment penalty. You’ll want to check the terms of your loan.)

Throughout your loan, commit to making on-time payments. If you might forget about a monthly bill, consider setting up automatic payments to simplify your life. In some cases, lenders offer a rate discount when you set up autopay.

Finally, communicate with your lender when you need to. If you run into a rough patch financially, communicate that issue to your lender as soon as possible. Depending on the situation, the lender might offer you a reprieve while you get back on your feet.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Rent prices in San Francisco’s Mission District have remained high above the national average for many years. On average, it costs $3,397 to rent a place to call home in San Francisco. And for business owners, rent prices have been a major strain for years.

But for some businesses, a recent rash of rent hikes represents the straw that broke the camel’s back. In particular, Aslam’s Rasoi on Valencia Street currently faces a 52% rent increase starting in May, according to a CBS News report.

The significant spike in the family-run restaurant’s operations costs has staff considering whether or not it’s possible to continue serving up the dishes that have been a staple in the community for almost 20 years.

Restaurants facing challenges on multiple fronts

Aslam’s Rasoi opened its doors in 2006. Although it’s survived many ups and downs in the economy over the last 20 years, operating a restaurant in a post-COVID world makes staying afloat more challenging than ever before.

CBS News reported that on top of the 52% rent hike the restaurant is facing as of May, co-owner Sonia Aslam says slower sales and higher ingredient costs influenced her family’s decision to close the restaurant in its current location.

Since the pandemic, Aslam told Mission Local, the restaurant started operating with a scaled-down crew of just a few family members.

On top of higher operations costs, Aslam Rasoi has seen foot traffic decline. Of course, some of this decline is related to the shifts in diner habits after 2020. But nearby traffic on Valencia Street has decimated foot traffic for Aslam Rasoi and other businesses in the neighborhood.

In recent months, the restaurant has remained open with financial support from family members. When the lease is up, the owners must decide whether to close for good or find another location.

“It’s just sad seeing the business struggling to this extent,” said Aslam. “We’ve tried to keep the restaurant going for all these years. We sacrificed all our time. We put our love into the business.”

Aslam, whose father-in-law opened the business in 2006, says the restaurant’s best hope would be an uptick in business over the next month or two. A bit more business would help the family feel more confident about moving to another, more affordable location.

And if they do reopen, they’ll likely join the many restaurants offering limited hours and a pared-down menu to maintain profitability during a tough climate.

Shifting dining and consumer trends impact business

The restaurant industry has always been a competitive business. But since the pandemic, dining habits have shifted dramatically. Consumer habits show people are generally opting for more take-out, drive-through and online ordering over in-person dining experiences.

“In the food service industry, the ways people order has shifted mostly to non-human contact or untact methods, such as online orders and drive-through orders,” according to a 2021 study.

Restaurant owners trying to keep up with the trend of less contact might choose to offer an easier way to order food online. Additionally, they might put more staffing behind takeout orders to keep pace with demand.

In addition to changing preferences, inflation and a [rising cost of living]( put pressure on household budgets. As diners face financial stress, many may cut back on discretionary purchases, like dining out.

To keep diners engaged, restaurants might focus on providing unique dining experiences that people want to share online and investing in customer loyalty programs to keep regular customers coming back for more in spite of rising costs.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.