Award-winning Texas restaurant announces closure as rising costs reshape fine dining

Even earning one of the food industry’s highest honors isn’t always enough to guarantee success.

A celebrated Michelin-starred restaurant in Texas has announced it will permanently close this month, with its chef pointing to the increasingly difficult economics of operating a fine dining establishment.

Olamaie to serve its final meals

Olamaie, the acclaimed Southern restaurant in Austin, planned to close on July 19 after nearly 12 years in business. Opened in 2014 by chef-owner Michael Fojtasek, the restaurant became one of Austin’s first Michelin-starred establishments when the Texas Michelin Guide debuted in 2024. It retained its star the following year and earned national recognition for its modern take on Southern cuisine. 

In a farewell message shared by the restaurant, the team thanked guests, employees and the Austin community for supporting the restaurant throughout its run.

Rising costs outweighed critical acclaim

Despite its prestigious Michelin recognition, Fojtasek said the restaurant faced mounting financial challenges that ultimately proved too difficult to overcome.

He cited soaring labor costs, high operating expenses, slow summer business and a lack of late-night dining traffic as key reasons behind the decision. While receiving a Michelin star initially boosted reservations, the increase in business lasted only several months before demand returned to normal levels. 

Fojtasek told local media that Austin has become one of the most difficult restaurant markets he’s experienced during his career, despite previously working in major culinary hubs like New York and Los Angeles.

Part of a broader restaurant trend

Olamaie’s closure underscores the financial pressures affecting restaurants across the country, including many highly regarded independent operators. Rising wages, inflation, elevated food costs and softer consumer spending continue to squeeze profit margins, forcing even award-winning establishments to rethink their future.

Although Olamaie is closing its doors, Fojtasek plans to continue working in the food industry through other culinary ventures, including his Gimme Burger concept and food and beverage projects at a golf and event destination near Houston. (Chron)

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