Family-dining chain Shari’s Restaurants, which has been struggling under the weight of growing financial problems, has abruptly closed all 42 of its locations in Oregon.
The 45-year-old chain, which is based in Beaverton, Oregon, and operates in the Northwest, has faced mounting allegations of unpaid rent and taxes, as well as eviction notices and lawsuits in recent months.
The Oregon restaurants closed at 5 p.m. Sunday.
In a letter to Shari’s employees shared on social media, Borgese (who referred to himself as the “sole managing member” of Gather Holdings Guarantee LLC), said the closures come “despite extensive and exhaustive efforts and hopes, still, for a different outcome …”
“I personally thank the Shari’s employees, especially those that during the past 14 months worked tirelessly to overcome the constant challenges of an ever-changing and uncertain business environment with hopes their efforts would result in a different outcome than the one we face today,” Borgese said in the letter.
Founded in 1978 by Ron and Sharon Bergquist, the chain operates as Shari’s Café & Pies and is known for its menu of family-friendly comfort foods and, of course, pie.
At one time, Shari’s had 95 locations across Oregon, Washington, Idaho, California, Wyoming and Nebraska, but it has been steadily closing units. In addition to the Oregon closures, Shari’s has shuttered nearly a dozen locations in Idaho and Washington in the last six months, according to local reports.
As of Tuesday morning, Shari’s website appeared to be down and not loading properly. Online listings for its headquarters indicate that the offices are closed. It is unclear how many Shari’s restaurants remain in operation.
Representatives from Shari’s and Gather did not immediately respond to a request to comment on the chain early Tuesday.
In June 2023, Gather Holdings announced it had received an undisclosed investment from private investment firm MGG Investment Group to bolster the financial health of the 42 Shari’s locations in Oregon.
“The new capital will ensure our restaurants can continue their recoveries from the challenges presented by the COVID-19 pandemic,” Borgese said in a press release at the time. “I am grateful for the determination, resilience and grit of our entire team of restaurant operators and support center employees who stood by the business and are the reason we are position for success.”
By 1999, Shari’s claimed to be the largest family restaurant chain in the country in total sales. In 2005, it was acquired by Circle Peak Capital, and at one point grew to around 100 units, including some in Colorado, Utah, Arizona and Texas, but those later closed.
In 2016 it was acquired by CapitalSpring. The investment firm exited a couple of years ago. Ownership has since shifted to Gather Holdings, led by Borgese, an industry veteran of Logan’s Roadhouse and Charlie Brown who had previously run the Coco’s and (now defunct) Carrows chains.
After Borgese took the helm of Shari’s in 2017, the company acquired both Coco’s and Carrows, which were once part of the struggling Catalina Restaurant Group that Borgese had led previously.
In 2023, Shari’s had $121.4 million in sales, which were down 7.5% over the prior year, according to Restaurant Business sister company Technomic. The chain ended the year with 78 units, which was a 7.1% decline.
Lisa Jennings contributed to this report.
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