A POPULAR family-style restaurant chain known for its award-winning pies and late-night menu options is facing tough times after closing seven restaurants in the last five months.
Shari’s Cafe & Pies operated nearly 100 restaurants across the Pacific Northwest at its peak, but that number has dwindled in recent years to just over 60 locations following unpaid bills, back taxes, and eviction notices.
Shari’s, also known as Shari’s Restaurants, is grappling with unpaid taxes and legal battles in Washington, Oregon, and Idaho.
The Idaho State Tax Commission has six active liens against Shari’s Management Corporation, the company that runs the restaurants.
All six liens amount to around $220,000 in unpaid state taxes.
Shari’s is also facing legal trouble in Washington, where court filings shows debt-collection cases filed against the chain in at least 11 counties since 2020.
Since January 2024, more than 10 debt collection and commercial eviction cases have been filed in Washington alone.
The Washington State Department of Revenue also issued Shari’s with three tax warrants between October and December 2023, including:
- October: $708,000 owed
- November: $300,000 owed
- December: $288,000 owed
Two property owners – one in Bend, Oregon, and another in Kitsap County, Washington, have filed eviction notices.
In Kitsap County, the restaurant chain owes over $150,000 in unpaid rent.
Shari’s also owes money to several vendors, including construction and plumbing companies, and their marketing agency.
Sarah Thomas, the president of Charlton Marketing, says the restaurant chain owes her ad agency over $100,000 in unpaid bills.
“I’ve had to lay off staff. I’ve had to really look at my bottom line,” Thomas said, as NBC affiliate KGW 8 reported.
“To Shari’s, I don’t know how much money that means to them, but to us it means a lot,” she added.
According to Aaron Allen, the founder of global restaurant consulting firm Aaron Allen & Associates, the closures aren’t surprising.
Shari's Cafe & Pies: A Brief History
Shari's Cafe & Pies, originally known as Shari's Restaurants, is a chain of family dining restaurants.
- The franchise’s original restaurant opened in Hermiston, Oregon, in 1978.
- The company’s headquarters are currently in Beaverton, Oregon.
- By mid-2017, the chain had over 95 locations.
- That number fell to just over 60 locations by August 2024.
- Shari’s operates restaurants in Washington, Oregon, Idaho, California, and Wyoming.
- All Shari’s restaurant locations have a hexagonal building design.
- The chain is best known for its diner-style food and beverage options, an assortment of freshly baked pies, and its nostalgic decor.
- Recent Idaho closures include locations in Lewiston, Boise, and Idaho Falls
- The restaurant has also closed down several locations in Washington and Oregon.
“Full-service concepts have had a difficult time raising money,” he said, as reported by The News Tribune.
He cited increasing costs of labor, food, and occupancy, “the three biggest costs for a restaurant,” as key reasons behind the restaurant’s struggles.
“All three of those have gone up at rates that are faster than what they’re able to increase their menu prices,” he said.
Older brands like Shari’s also deal with “generational clientele,” which leads to price sensitivity.
Older diners, who may have been Shari’s regulars for years, if not decades, have grown accustomed to certain prices for certain items.
“We all kind of tend to lock into our mind what the cost of bread or whatever it might be from some historical point, and then you get sticker shock,” Allen added.
Allen said that it’s unlikely that Shari’s will close down all of its remaining restaurants overnight, and there is still hope for the struggling business.
However, he also likened the chain’s recent closures and ongoing legal issues to “Sears’ slow withdrawal from the commercial landscape.”
DEVASTATED DINERS
Despite the restaurant’s ongoing legal battles and rising debt, many longtime diners are sad to see the chain struggle.
“People still have a reverence for the company name,” Aaron Allen said.
“There are still always people who will continue to be supportive of them. But change is tough to deal with.”
After The News Tribune reported that the chain would be closing its last location in Tacoma last month, current and former customers shared their thoughts on the closures on Facebook.
“I spoke with management and they told me that the raise in rent and overhead cost doesn’t make sense to remain open,” one customer wrote.
“No more family style diners anymore. So sad,” another customer shared.
“I loved Shari’s pies!!!” another diner added.
Some former customers, however, weren’t shocked by the announcement.
“Over the last decade their food and service has gone way downhill,” one diner wrote.
“Good riddance, to terrible quality, soul-destroying corporate chains,” another diner shared.
SHARI’S SAGA
Shari’s Restaurants first opened its doors in 1978, operating as a family restaurant in Hermiston, Oregon.
In 1999, the chain was acquired by Fairmont Capital for $60 million.
Today, Gather Holdings LLC is Shari’s Management Corporation’s parent company.
According to Google, Shari’s Management Corporation is listed as “temporarily closed.”
The U.S. Sun attempted to contact Shari’s Restaurants, but there was no response via phone or email.
Automated messages directed callers inquiring about legal, real estate or vendor support to email the company instead, or to check the chain’s website for additional information.
Emails to Shari’s legal team have not been answered.
Shari’s contact page is also currently under construction.