Cape Town’s ‘Day Zero’ was coined in anticipation that taps would be shut down in response to a persistent drought spanning 3 years. Though a singular event, it revealed the complex, interconnected challenges influencing the volatility of the hospitality sector, infrastructural pressures, shifts in post-pandemic consumer demand and increasing sustainability expectations. Research indicates that drought (Mokone & Gumede 2025; Visser 2018) and water scarcity (Brühl & Visser 2021) have long-lasting impacts on business systems. A critical evaluation of the tourism and hospitality industries exhibits significant vulnerability to climate-related shocks. In light of the water crisis, restaurants have adopted measurable strategies to enhance their resilience and have restructured their menus to navigate the uncertainties of this challenging period (Magida & Makoza 2023). This context underscores the need to revisit previous findings (Brühl & Visser 2021; Calverley & Walther 2022; He, Liu & Wu 2021), which depict a prolonged environmental crisis and suggest critical long-term management strategies to mitigate its impacts on businesses, including fine-dining restaurants. Mokone and Gumede’s (2025) recent study proposes an urgent sustainability framework that aims to promote sustainable consumption in alignment with the United Nations Sustainable Development Goals (SDGs) (United Nations [UN] 2021).

The operational resilience of high-end restaurants has been tested through the implementation of ecopreneurial practices. Whilst drought has historically constrained supply, the current challenge of load shedding introduces new limitations regarding customer experience and safety. Mabunda, Mukonza and Mudzanani (2023) have established a connection between rolling blackouts and widespread environmental health risks, which affects the performance of small- and medium-sized enterprises (SMEs). Load shedding remains a critical issue affecting various business operations, with some small enterprises forced to cease operations altogether (Mabunda et al. 2023). It is these situations that compelled restaurants to consider sustainable solutions such as solar systems, battery storage and gas redundancy (Brühl & Visser 2021). Consequently, capital expenditures in the fine-dining sector are increasingly prioritised towards on-site energy generation and off-grid cold-chain protection, often in conjunction with efficiency upgrades learned during the water crisis (Wright et al. 2024).

Cape Town’s water crisis, which peaked between 2015 and 2018, indeed, exposed the fragility of urban water infrastructure and the socioeconomic vulnerabilities (Brühl & Visser 2021). The announcement of ‘Day Zero’ marked a critical juncture, necessitating the cessation of water supply to both businesses and residents. This situation placed significant pressure on fine dining establishments, compelling them to implement measures to conserve water and innovate their practices, or face the possibility of closure. This ongoing environmental crisis challenge continues to affect the Western Cape region, including Knysna, and different regions of South Africa, such as Port Elizabeth, Limpopo and KwaZulu-Natal, leaving approximately 1.28 million people concerned about future water availability (National Department of Water and Sanitation [DWS] 2026; Visser 2018; World Meteorological Organization [WMO] 2023). Provinces such as Gauteng and the Eastern Cape highlight deteriorating infrastructure, posing survival challenges to businesses and local citizens who depend on water (Mokone & Gumede 2025). The World Economic Forum (2024) further highlights the urgency of rising global temperatures and stresses the importance of environmental awareness. The WMO (2023) further underscores the growing challenges in changing climate patterns, including persistent flooding in low-lying areas, raising concerns about future water crises. As Knysna continues to grapple with the water crisis challenges, the Western Cape government promises to work closely with the National DWS to safeguard water security and to mitigate the impact on businesses, residents and the tourism industry (DWS 2026).

In Cape Town, in an effort to mitigate the impacts of water crisis challenges, fine dining restaurants took significant steps to incorporate fair employment practices, comprehensive training, and supplier diversity into their sustainability initiatives. This approach effectively bridges the gap between urban water governance and firm-level actions (Rodina 2019). Survey data from Cape Town’s fine-dining establishments also revealed a strong focus on innovative strategies as key components of resilience within the hospitality and tourism industry (Magida & Makoza 2023; Rolker et al. 2022). This can be achieved through environmentally responsible practices, whilst being innovative in achieving the enterprise’s goals, which could also be considered as ecopreneurship.

The term ecopreneurship represents a distinct category of entrepreneurship where environmental responsibility is a primary driving force rather than a secondary consideration. According to Vola, Cantino and Gelmini (2022), this phenomenon encompasses the emergence of innovative practices amongst private-sector entities that place environmental focus at the heart of their business models, thereby achieving sustainable competitive advantage (Mtapuri et al. 2024; Rodríguez-García, Guijarro-García & Carrilero-Castillo 2019). Furthermore, underscores the role of entrepreneurs in cultivating new business ideas fundamentally grounded in sustainability. This article examines the barriers to sustainable entrepreneurship during a water crisis resilience in fine dining restaurants. The study employs insightful analytical strategies that support sustainable entrepreneurship to mitigate future water crises.

This study employed a qualitative research methodology, focusing on the experiences of fine dining restaurant entrepreneurs. Purposive sampling was used to identify suitable participants. A total of 29 fine dining restaurants operating in the Cape Metropole were initially identified. Confirmation of the establishments in operation was conducted. At this stage, owners who were contacted directed researchers to other businesses operating in the area, which resulted in snowball sampling being implemented as a secondary sampling method (Creswell & Poth 2018). One restaurant owner, whose restaurant had been operating for over 23 years, subsequently referred owners of fine dining establishments within several five-star hotels across the Cape Town metropolitan area, highlighting the high-level networks of the sector. Purposive sampling, initially applied, helped in identifying suitable participants as well as mitigating any response bias, which would possibly be introduced by snowballing (Creswell & Poth 2018). Establishments were categorised, and those excluded did not fall under the category of fine dining. Others had closed down operations due to the emergence of the coronavirus disease 2019 (COVID-19) pandemic at the time of data collection. All the factors had an impact on the study’s sample size.

Ten suitable and willing participants emerged, whose in-depth experiences provided valuable data for this study. Permission was granted, and safety procedures for data collection were also followed during the pandemic. Data collection was carried out through face-to-face, semi-structured interviews, each lasting approximately 1 hour. Consent prior to participation in this study was obtained from participants. Submissions were made to the university ethics committee, where approval was granted for the commencement of the study.

Open-ended questions were employed to elicit in-depth insights into the challenges faced by fine dining restaurant owners during the water crisis. Qualitative research focuses on providing rich, contextual insights rather than statistical generalisation (Mason 2010). A thematic approach that identified recurring patterns within the responses was applied. At the end of the fourth interview, similarities in responses emerged (Mason 2010), leading to data saturation. Although saturation was achieved, the researchers continued analysing all 10 participants’ data to validate responses. The findings reflected the authentic expressions and experiences of the participating entrepreneurs.

As an extension of the previous study, examining the barriers to sustainable entrepreneurship (Magida & Makoza 2023), this study aims to share barriers to the resilience of fine dining restaurants during an environmental crisis. The study further employs insightful analytical strategies that support sustainable entrepreneurship to mitigate future water crises. Results below are presented in sub-themes to determine the barriers to sustainable strategies during a crisis, aimed at knowledge sharing of environmental eco-practices. The discussion includes direct extracts illustrating the perspectives of the respondents, as they navigated the challenges of the water crisis in their businesses during the amplified Doomsday moments, ‘Day Zero’ (Warner & Meissner 2021; Wolski 2018). The extracts adopted in the study are most relevant and presented in verbatim to reveal real-life experiences.

It articulates to the reader the vital role of effective sustainability in businesses. Presented in Figure 1 are the main themes that emerged from the study, with related sub-themes as Theme 1: Ecopreneurship (elements: environmental responsibility, reflect deeper structural, cultural and strategic dynamics), Theme 2: Strategic innovation (elements: crisis adaptability, resistance to change and fine dining standards) and Theme 3: Institutional Accountability (elements: lack of government support, financial constraints and staff buy-in, knowledge sharing of environmental eco-practices). Although the findings could assist on a global scale, the researchers caution that the exploratory nature of the study and the geographic context may limit the generalisability of the findings.

The discussions surrounding Theme 1 illustrate that fine dining restaurants played a crucial role in implementing sustainable strategies to address the water crisis. However, these efforts were met with significant challenges, primarily stemming from the increased water tariffs imposed by the Cape Town municipality. The insights collected underscore the essential function of ecopreneurship during this critical period.

Themes 2 and 3 illustrate that the implementation of water management strategies presents its own set of challenges, as these measures incur high costs for fine dining establishments. Despite the entrepreneurs’ commitment to sustainability, insufficient financial support remains a major obstacle to achieving sustainable entrepreneurship. Existing literature emphasises the need for policy coherence, infrastructure funding and collaborative efforts as critical components of environmental resilience (Dube et al. 2022; Warren et al. 2023). Critiques from Rawlins (2019) and Enqvist and Van Oyen (2023) highlighted the inconsistent support from the South African government during environmental crises. Warren et al. (2023) further stress that effective water management strategies, stewardship, advocacy, such as Biatree platforms, and strong leadership are vital in addressing water crises. The Provincial Department of Water and Sanitation’s punitive measures, including heightened water tariffs based on consumption levels, compelled restaurants to invest in water-saving technologies (Visser 2018). Only those fine dining restaurants with the financial capacity were able to implement innovative crisis management strategies. In Theme 3, it becomes evident that tourists are inclined to choose alternative destinations where water issues are less pronounced. Furthermore, the findings highlight a notable deficiency in staff training, which is essential for adequately preparing employees to tackle future crises. To ensure adherence to environmental regulations, it is imperative that well-trained staff effectively implement business sustainability strategies (Baldwin 2009). Staff resistance emerges as a significant hurdle, exposing a gap in training and awareness related to sustainable practices; this resistance may also stem from a lack of innovative approaches within entrepreneurial practices. The capacity of tourism and hospitality firms to innovate is significantly influenced by a broader ecosystem that includes tourism destinations, customers, organisations, government entities and the supply chain (DWS 2026; Heikkurinen & Forsman-Hugg 2011; Scott et al. 2012).

The findings highlight that sustainable entrepreneurship encompasses more than just innovative practices within individual businesses. It fundamentally relies on collaborative support and strategic partnerships with various stakeholders, ultimately driving enhanced business success. When ‘Day Zero’ was announced in 2018, the municipality was ready to introduce high water tariffs with minimal consideration of the implications on businesses and residents alike (Bischoff-Mattson et al. 2020), indicating how knee-jerk reactions by municipalities could be detrimental, rather than assistive.

As businesses navigate the challenges imposed by environmental constraints, there remains a pressing need for the development of a theoretical framework for sustainability through the lens of environmental impact. Firstly, this study underscores three critical dimensions for achieving eco-responsible responses to water crises within the framework of sustainable entrepreneurship: Ecopreneurship (environmental responsibility, reflect deeper structural, cultural and strategic dynamics), Strategic innovation (crisis adaptability, resistance to change, fine dining standards), and Institutional accountability (lack of government support, financial constraints and staff buy-in, knowledge sharing of environmental eco-practices). The view of sustainable practices for small businesses needs evolution, from a mere compliance issue to environmental stewardship. In this way, fine dining restaurant owners can build resilience against future environmental disruptions. This perspective aligns with the existing literature advocating for strategic foresight in sustainability planning.

Secondly, environmental stewardship should not come at a personal cost to the business owner or perceived loss of quality standards of fine dining offerings. Authentic experiences and environmental responsibility are not mutually exclusive; rather, they should be viewed as complementary objectives for long-term viability. Creating authentic experiences demands investment in specialised skills and sourcing of high-quality materials, which require high upfront costs. Financial backing empowers businesses to adopt proactive crisis management, thus reducing vulnerabilities to short-term environmental disruptions.

Thirdly, a strengthened collaborative effort amongst all stakeholders, highlighting the role of government accountability during times of environmental crisis, is imperative. This support, coupled with staff buy-in, comprehensive training and skills development for the entire value chain of suppliers, becomes vital. These partnerships must transcend traditional accountability structures to be integrated into crisis management frameworks as part of a long-term strategic approach. Aligning these insights with existing literature supports the perspective that government responsibilities should extend beyond a singular accountability structure.