OBSERVER photo Demetri’s on the Lake will close on Friday, Nov. 14.

How tough is it to do business in Chautauqua County and New York state? For one city of Dunkirk restaurant, it has become too much of a burden.

On its Facebook page on Saturday, Demetri’s on the Lake announced that “after two wonderful years” it will be closing on Friday, Nov. 14. “Due to rising food costs, increases in minimum wage, an 84% increase in city taxes, and ongoing equipment repairs, we can no longer continue operations,” the restaurant posted.

Signed by the Miller family — Jim, Shirlene, Haleigh and Reilly — the family took over the business after it closed for a time in March 2023. It was reopened by the previous owner before the family took it over.

Minimum wage in New York state this year is $15.50 per hour and will rise again starting on Dec. 31 to $16 for 2026.

A report from the Tax Foundation issued last week noted New York was at the bottom of the list when it came to its State Competitive index noting that those at the end tend to have a number of issues in common: complex, nonneutral taxes with comparatively high rates. That report listed New York as 47th for property taxes, which are levied by area municipalities and schools, and 42nd in terms of sales tax, which was increased from 7.5% to 8% by the Chautauqua County Legislature in 2016.

Located at 6-8 Lake Shore Drive West, the restaurant has traditionally hosted weekly and monthly retiree gatherings for decades. “We deeply thank you for your support and friendship and wish everyone a happy and healthy holiday season,” the family said with heartfelt thanks.

On Oct. 17, another bar and eatery announced it was closing effective Saturday on Main Street in Fredonia. Monster Beach ownership posted on that day: “We have been operating Monster Beach for the past year, at a loss, and at tremendous personal costs to our schedules, health, and sanity. … Those of you who frequented Monster Beach have shown an incredible amount of support and love, and we love you right back, but we’ve reached a point of loss where we simply cannot continue to operate without putting our own homes and livelihoods at risk.”