May 27, 2026
CBS News recently published an article featuring Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, discussing how Clover Food Lab, the Boston-area vegetarian restaurant chain that began as an MIT food truck in 2008, announced it will close all of its locations and meal delivery operations after 17 years in business.
Company leaders cited rising food, delivery, and operating costs, noting that ingredient prices alone have increased by 30% to 50% over the past two years. Zagorsky said Clover’s challenges reflect broader economic pressures facing both businesses and consumers.
“I think, we’re gonna be seeing increasing number of business bankruptcy is both in the food space and in other areas that are under financial pressure,” he adds.
Zagorsky also pointed to shifting consumer behaviors, including declining vegetarianism rates and the growing use of weight-loss medications, as potential headwinds for the fast-casual restaurant industry. The closure highlights the financial challenges facing independent restaurant operators as costs continue to rise and consumer spending habits evolve.
