From cozy cafes to upscale eateries with sweeping ocean views, Marblehead’s restaurant scene is the heart of this historic town’s economy and identity.

Louise Capasso, owner of The Muffin Shop, serves a customer on Oct. 17. The Washington Street business has been in operation for nearly four decades. CURRENT PHOTO / WILL DOWD

The community’s diverse dining offerings not only attract visitors and support local jobs, but also foster a strong sense of community pride, according to business owners and industry leaders.

“We find the people in Marblehead to be very welcoming, very friendly,” said Amanda Breen, who opened Mai Tai Lounge with her husband, Jamison, three years ago. “They really enjoy coming in and being able to relax there.”

The Asian fusion restaurant, at Village Plaza, has become a busy place known for its handcrafted cocktails and innovative cuisine, the owner said. It’s one of many independent establishments that make Marblehead stand out in a sea of chain restaurants.

In fact, over 90% of the approximately 18,000 restaurants in Massachusetts are owned by independent operators rather than large corporations, according to Jessica Muradian, director of government affairs at the Massachusetts Restaurant Association.

“These are small business owners,” Muradian said. “Independent restaurants tend to source more from other local businesses, too.”

She added the restaurant industry is the second-largest private sector employer, providing jobs for 9% of the Massachusetts workforce. In 2022, it generated over $1.6 billion in meals tax revenue for the state budget.

Dining scene draws locals, tourists

On a local level, Marblehead’s 50-plus restaurants and dining establishments play a vital role in driving the town’s tourist economy and enhancing quality of life. Katherine Koch, executive director of the Marblehead Chamber of Commerce, said eateries are a key part of the “shop local” ethos.

“There is a very strong, loyal following to a lot of our fabulous restaurants,” Koch noted. “Many are constantly revamping their menus to keep things fresh and keep their clientele coming back.”

That variety is a major draw, with options ranging from classic seafood shacks to international cuisines. Koch rattles off a diverse list of local favorites, from The Landing to authentic Italian at Caffe Italia to Soall Bistro’s popular Vietnamese fare.

“It’s a nice array,” she said. “You’ve got your comfort food, you’ve got Thai, Mexican, seafood …”

Long-running establishments like The Muffin Shop have also become beloved institutions. Owner Louise Capasso said the cafe, which she opened with her family 38 years ago, is now “like a staple” in town.

“You get to know so many people — they become like family and friends throughout the years,” Capasso said. “We just love it here. I can’t find myself in any other place.”

May’s Town Meeting adopted a 0.75% local tax on meals. In the first several months of collection, the tax generated $35,000 in revenue for the town, according to Finance Director Aleesha Benjamin.

In Essex County alone, where Marblehead is located, 1,792 eating establishments employ 31,725 people, according to data from the Massachusetts Restaurant Association. But its economic impact reaches far beyond those directly employed by restaurants. Muradian said the industry supports a wide network of related businesses, from food and beverage wholesalers to linen services and construction companies.

“The restaurant industry goes even deeper than employment numbers,” Muradian explained. “It’s more than just the people working in the restaurants themselves.”

Challenges test restaurateurs’ resolve

But restaurant owners say they face mounting challenges. Skyrocketing costs for ingredients, utilities and labor cut deep into already slim profit margins.

“We try to keep our prices as low as possible, because we want our return customers to come back and not feel the impact,” Capasso said. “But at the end of the day, you don’t really see much profit.”

Seasonal lulls add to the strain. Though Marblehead benefits from a steady stream of tourists in peak months, the off-season can be brutal for businesses reliant on that traffic.

“January to March really slows down,” Capasso said. “But we stay steady and busy all the way through December.”

Labor shortages are another pain point felt across the industry. The Massachusetts Restaurant Association reports employment levels statewide still haven’t rebounded to pre-pandemic numbers, trailing even the hard-hit retail and hospitality sectors.

Some relief may be in sight as more workers return. In the first quarter of 2024, the state’s meals tax revenue hit $408 million — a promising 26.6% of the full-year projection, suggesting a robust recovery is underway.

Despite the hurdles, local restaurateurs remain optimistic. The Breens are encouraged by growing crowds at Mai Tai Lounge as word spreads about their offerings.

“It’s been a challenge being tucked away on the second floor,” Jamison Breen said. “But I think we’re growing past that. Even three years in, you still find some people living in Marblehead that don’t know we’re there, and then they come in for the first time. It’s like a hidden little gem.”

As Marblehead’s restaurant scene continues to flourish and evolve, its impact stretches well beyond the dinner plate. Eateries serve as gathering places, local employers, tourist magnets, and springboards for the next generation.

“It’s nice that (local restaurants) are hiring high school and college kids on their breaks,” Koch said. “They’re learning a skill in their hometown. It’s a really great community connection.”