Like a missing-persons case that ends with a body, the mystery of Shari’s gradual disappearance was resolved Monday with a startling discovery: The once high-flying family-dining chain is just about gone.
Owner CEO Sam Borgese surfaced long enough to confirm that all 42 of the Shari’s restaurants in the brand’s home state and core marketing territory of Oregon had closed for good.
It’s tough to tell how many units may still be selling the brand’s signature pies and oversized breakfasts in other states; Shari’s website has been left inoperable, and its headquarters is listed as closed in several online directories. And Borgese has yet to respond to the emails that have been sent his way since the regional chain’s slide first came to light several months ago. At that time, local media reports indicated that 60 branches remained of what was once a 95-store regional powerhouse.
Those dispatches told the story of a gradual fade for a brand that once boasted an almost cult-like following. News stories reported that a unit or two had closed here, a few more elsewhere. Soon the shutdowns were adding up to a significant downsizing.
Simultaneously, reports arose of landlords being left empty-handed, distributors refusing to resupply stores and waste haulers halting service because they weren’t being paid. Unit-level employees echoed reports from the media that no one at the corporate level could be found to provide an explanation and details. Attempts by Restaurant Business were among the fruitless efforts.
Then came confirmation from the Oregon Lottery that all 42 Shari’s stores in Oregon had gone dark. The state-run gaming operation had remained a partner of the chain, splitting the proceeds from individual restaurants’ sale of lottery chances via up to six video terminals per store. Those revenues amounted to $34 million last year, according to lottery officials.
Then the royalties due to the state gaming operation stopped coming last week, and it managed to rouse Borgese as it looked to reclaim sales terminals. He confirmed via an email to the state agency that all 42 Shari’s units in Oregon were permanently closed.
More or less simultaneously, Borgese sent a letter to Shari’s employees. According to a copy posted on Facebook, the communication broke the news that the recipients’ stores would close as of 5 p.m. Sunday. It thanked them for their service and said they’d be paid for hours worked up that time.
The letter indicated that Borgese and Shari’s other leaders had “worked tirelessly” in “hopes their efforts would result in a different outcome than the one we face today.”
It attributed the decision to end Shari’s presence in Oregon after 45 years to an “ever changing and uncertain business environment.”
The condition of Coco's, a sister concept, is unknown. The family-dining concept's website lists four units operating in the Los Angeles area.
Borgese is no stranger to the challenges of the business. He was CEO of the Logan’s Roadhouse casual steakhouse chain when it filed for bankruptcy protection in 2016, and was serving as interim CEO of the Charlie Brown’s casual chain when it filed for protection in 2010, according to his bio for El Pollo Loco, which he currently serves as a director.
Shari’s, whose shuttered headquarters is located in Beaverton, Oregon, was founded in 1978 by Ron and Sharon “Shari” Bergquist. It was known for its array of freshly made pies served along with generously portioned breakfasts, lunches and dinners around the clock. Many of its units were developed in smallish Oregon towns that featured few sit-down chain operations.
The brand's slogan: "You're always welcome at Shari's."
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.