Is Shari’s Going Out of Business? Major Locations Closed

Yes, Shari’s Café & Pies is going out of business. Due to financial struggles, poor management, and the impact of the COVID-19 pandemic, the company has closed most of its locations.

In October 2024, all of its Oregon locations shut down, leaving only a few branches remaining across other states. The chain owes over $900,000 to the Oregon Lottery, which contributed to the closure.

Despite its iconic status, Shari’s Café & Pies has ultimately reached the end of its era. This leaves many wondering, Is Shari’s going out of business for good? In this article, you can learn about the history of Shari’s Café & Pies and the factors leading to its closure.

Overview of Shari’s Brand

Shari’s Cafe & Pies was a beloved dining establishment founded in 1978 in Hermiston, Oregon by Ron and Sharon “Shari” Bergquist. Known for its iconic pies and comfort food, it became a staple in the Pacific Northwest.

With its cozy, family-friendly atmosphere, Shari’s gained a loyal customer base, offering a wide range of meals 24/7. Its signature pies, like marionberry and chocolate cream, earned a special place in the hearts of its visitors.

Over the years, Shari’s expanded to nearly 100 locations in multiple states. Despite its popularity, financial struggles and management challenges led to its downfall, leaving many wondering if Shari’s could ever make a comeback.

History of Shari’s Cafe & Pies

Shari’s Cafe & Pies was once a cherished institution in the Pacific Northwest, known for its cozy atmosphere, classic comfort food, and famous pies.

1978: The Beginning of a Family Legacy

Shari’s was founded by Ron and Sharon “Shari” Bergquist in Hermiston, Oregon. Their goal was to create a cozy diner with comfort food and famous pies. The design featured a six-sided building to let in plenty of natural light.

The Rise of Popularity

Shari’s became known for hearty meals and iconic pies. Dishes like country-fried steak and banana cream pies became favorites. The restaurant’s 24-hour service made it a go-to spot for families, travelers, and late-night diners looking for a welcoming environment.

Expansion in the 1980s and 1990s

In 1985, Shari’s was sold and grew rapidly. By the 1990s, it had nearly 100 locations in the Pacific Northwest. Despite this growth, Shari’s continued to focus on family-friendly meals and kept the essence of the original diner intact.

Ownership Changes and Struggles

Over the years, Shari’s experienced frequent ownership changes. In 2018, it acquired Coco’s and Carrows, but faced financial strain. The management instability and poor business decisions made it harder for the company to stay competitive.

Impact of the COVID-19 Pandemic

The pandemic hit Shari’s hard. With fewer dine-in customers and lost video poker revenue, Shari’s faced severe financial difficulties. The business struggled to recover and adapt to changing consumer habits.

2024: The End of an Era

In 2024, Shari’s closed most of its locations including all Oregon branches. Despite its iconic status, financial issues, poor management decisions, and the pandemic ultimately led to the end of Shari’s era.

Is Shari’s Going Out of Business

Yes, Shari’s Café and Pies is going out of business. Shari’s Cafe & Pies is facing serious financial struggles. In August 2024, the company revealed it was behind on payments for property taxes and services. This led to the closure of many locations.

By October 2024, only 49 locations remained in California, Oregon, Washington, and Idaho. However, in late October, all Oregon locations closed, leaving just 17 locations. Shari’s also owes around $900,000 to the Oregon Lottery for video lottery machines.

Why is Shari Going Out of Business?

Several key factors have led to the closure of Shari’s Cafe & Pies. Here are the primary reasons:

Financial Struggles and Debt Crisis

Shari’s faced growing financial problems over the years. The chain expanded too quickly, leading to high operating costs and slow returns. In 2024, Shari’s had significant tax liens and lawsuits for unpaid bills, signaling severe financial struggles.

The company failed to pay the Oregon Lottery in May 2024, which led to the shutdown of its lottery machines. Shari’s still owes over $900,000 to the Lottery.

Lasting Impact of the COVID-19 Pandemic

The pandemic dealt a severe blow to Shari’s. Forced closures and reduced indoor dining led to a drop in customer traffic. Even after restrictions were lifted, dine-in customers didn’t fully return, putting further pressure on the restaurant’s profits.

Loss of Key Revenue Streams

Shari’s also relied heavily on revenue from video poker terminals, which brought in millions each year. However, in 2024, Shari’s fell behind on its payments to the Oregon Lottery, leading to a $900,000 debt.

The lottery eventually cut off Shari’s access to gambling revenue, removing a major income stream and deepening the company’s financial troubles.

Frequent Leadership Changes

Frequent ownership changes and management instability disrupted the restaurant’s operations. From 1985 onward, Shari’s underwent several leadership shifts, leading to inconsistent strategies and direction. This lack of stability made it harder to adapt to changes in the market.

Loss of Customer Appeal

Shari’s struggled to appeal to younger generations while retaining its loyal base. Attempts to rebrand the restaurant in 2018 with a “Northwest” theme and refreshed menu weren’t enough to attract new customers or bring back older regulars.

Growing Competition from New Dining Trends

The rise of fast-casual and takeout-only dining options, along with the closure of other similar casual dining chains, added to the challenges Shari’s faced. The restaurant couldn’t compete with more convenient dining options that matched changing customer preferences.

Poor Marketing and Branding Strategy

Shari’s failed to modernize its marketing effectively. While the brand had a strong legacy in the Northwest, it didn’t adjust its messaging for the younger demographic. Lack of clear, consistent marketing left Shari’s struggling to capture the attention of new customers while retaining older ones.

Official Statement on Shari’s Cafe & Pies Going Out of Business

Shari’s Café & Pies closed all 42 locations in Oregon in October 2024. The closures were confirmed by Gather Holdings, the parent company. The 24-hour restaurant served comfort food, remaining open 365 days a year.

Could Shari’s Make a Comeback?

Shari’s Cafe & Pies could make a comeback by focusing on key areas. Restructuring its finances and reducing debt would provide room for growth. Leveraging its nostalgic brand could attract old customers.

Updating the menu with healthier options would appeal to modern diners. Expanding its digital presence with online ordering and delivery services would attract a wider audience. Improving operational efficiency and cutting costs would help profitability.

Seeking new investment and forming partnerships could bring fresh funds. Finally, revitalizing customer engagement with loyalty programs would strengthen its community ties. These steps could help Shari’s rebuild and thrive again.

Impact of Shari’s Café & Pies Closing on Customers

Here are the key impacts of Shari’s Café & Pies going out of business on its customers:

Loss of a community staple: Many loyal customers are grieving the loss of a beloved gathering spot for families, travelers, and late-night diners.
End of 24/7 service: The closure removes the convenience of having a 24-hour restaurant, which was especially important for late-night meals and early risers.
Loss of iconic menu items: Customers will miss Shari’s famous pies, comfort food, and hearty meals, like banana cream pie and country-fried steak.
Impact on local economy: The closure leaves a gap in certain communities, especially where Shari’s was a local favorite.
Loss of entertainment options: Many patrons who enjoyed video poker terminals for entertainment, along with dining, are now looking for alternatives.
Emotional impact: The end of a longstanding tradition and nostalgic memories tied to Shari’s has left many customers feeling sentimental and saddened.
Need for alternatives: Customers now have to seek other restaurants or dining options that offer a similar experience, affecting their dining habits and preferences.

Alternatives to Shari’s Cafe & Pies

If Shari’s does close for good, there are several other restaurants that offer a similar dining experience, providing comfort food, familiar atmospheres, and a sense of community.

Denny’s: Known for its 24-hour service and extensive menu, Denny’s provides a reliable alternative with comfort food and family-friendly options.
IHOP: Famous for its breakfast offerings, IHOP serves hearty meals throughout the day, making it a great option for those who loved Shari’s breakfast menu.
Cracker Barrel: Offering Southern-inspired comfort food in a cozy, rustic setting, Cracker Barrel is a solid choice for fans of home-style cooking.
Black Bear Diner: With its cozy atmosphere and classic American dishes, Black Bear Diner offers a similar vibe to Shari’s, featuring generous portions and a welcoming ambiance.
Perkins Restaurant & Bakery: Known for its pies and extensive menu, Perkins provides a diner-style experience with bakery-fresh desserts, similar to Shari’s.
Bob Evans: A great option for those seeking comforting farm-to-table meals, Bob Evans offers country-style dining and hearty breakfasts.

Conclusion

Shari’s Cafe & Pies was more than just a restaurant—it was an iconic part of the Pacific Northwest’s dining scene. However, financial struggles, pandemic-related losses, and shifting customer preferences have led to its closure.

While the future remains uncertain, there is still hope for a revival if the chain addresses its financial and operational challenges. Whether or not Shari’s can make a successful comeback, its legacy as a beloved gathering place will remain etched in the memories of many.