RESTAURANT La Tasca in North Hill, Colchester is set to close on Saturday, with the loss of up to 16 jobs.
The Spanish food chain has decided to shut the branch as part of a restructure of the company.
The restaurant manager was unable to comment last night.
Ron Levy, secretary of Colchester Retail Business Association, spoke of his sadness at the loss of the restaurant.
He said: “Any business that closes down is a very great disappointment to us because it is a part of the town.
“It is very sad but there is virtually nothing that can be done about it. People do not close down a successful business. It could well be a victim of the recession.
“People don’t have the spare cash to spend on luxuries like eating out.”
It is understood a number of other La Tasca branches could also be closed under the restructure.
