Why are So Many South Carolina Restaurants, Venues, and Bars Closing?
If you’ve read or watched the news in South Carolina in the last few years, you likely have noticed a strange and disconcerting phenomenon: scores of restaurants, bars, and music venues have announced their closures.
From the iconic Smiley’s Acoustic Cafe in Greenville to Henry’s of Cayce, long-established businesses in the state have been shutting their doors, citing the cost of insurance as the killer.
But the problem goes much deeper than just insurance costs.
To explain just what is going on, our team put together this visualization of the contributing factors. Patron behavior at these establishments is a factor, as well as insurance companies attempting to clear a profit. But government actions of various kinds interfere at multiple points.
Last year, the SC Senate tried to put on special order legislation that would have addressed a myriad of the problems leading to these closures, but after members could not reach an agreement, the issue was abandoned.
And thus, businesses (particularly small businesses) have continued to close.
This year has to be the year that the legislature addresses the issue of tort reform. Palmetto Promise has since 2019 called for the legislature to address this injustice, and it seems like 2025 is the year it finally gets done.
In the coming days, Palmetto Promise will be publishing an extensive report expanding on this chart and digging in-depth into the legal system that has allowed South Carolina businesses to be the victims of predatory lawsuits.
Stay tuned.