Shari’s Restaurants, loved for its homestyle meals and tasty pies, has been going through some big changes. Some people might ask, “Is Shari’s going out of business?” but the truth is more detailed. We will talk about the recent investment in Shari’s by MGG Investment Group, how it helps the chain recover from money problems, and what this means for Shari’s future. Instead of closing down, these changes could start a new chapter for this well-known restaurant chain.
Shari’s Overview
Founded in 1978, Shari’s has come a long way from its humble beginnings as a family-owned business in Hermiston, Oregon. Over the years, it expanded its operations, providing a homely dining experience to customers across the Western U.S. Known for its round-the-clock service and expansive menu, Shari’s quickly became a go-to spot for families and late-night diners alike. Its unique offering of pies, ranging from sweet to savory, earned it a special place in the heart of American food lovers.
Is Shari’s Going Out Of Business?
No. Despite the closure of some locations, Shari’s as a brand isn’t going out of business. It’s true that certain Shari’s outlets in Walla Walla, Kennewick, and Union Gap have shut their doors. This decision was primarily influenced by the financial strain brought on by the COVID-19 pandemic, a situation many businesses worldwide found themselves in.
However, it’s crucial to note that these closures do not indicate a complete shutdown of Shari’s. In fact, the company has been taking steps to strengthen its remaining outlets, particularly those based in Oregon. Gather Holdings LLC announced a significant investment in Shari’s, indicating a commitment to the brand’s continuation. Their involvement, combined with the financial backing of MGG Investment Group LP, suggests a concerted effort to keep Shari’s afloat.
So, while certain outlets have unfortunately had to close, it’s clear that the brand as a whole is far from going out of business. Instead, Shari’s is focusing on its recovery, bolstering its remaining restaurants, and ensuring they continue to serve their loyal customer base.
Financial Difficulties Faced By Shari’s
Shari’s Restaurants has indeed faced financial turbulence. The company-operated chains have experienced a significant drop in sales by 21% over the past five years. The pandemic has only exacerbated the situation, leading to closures and financial strain. However, recent developments suggest that Shari’s is making concerted efforts to bounce back.
MGG Investment Group has invested in 42 of Shari’s locations in Oregon, a move that suggests some hope for recovery in the post-COVID-19 era. Meanwhile, Shari’s Management Corporation is not sitting idle. They have restructured their corporate setup, focusing on cost-cutting measures and adapting to the changing industry landscape. They have also introduced new leadership, including a new Chief Financial Officer, to steer the company towards a brighter future.
Current Status Of Shari’s
While Shari’s has faced a series of closures, it is also undergoing changes aimed at improving its operations and customer experience. The abrupt closure of the Kennewick location, after being in operation for more than 40 years, came as a surprise to many. This closure mirrors the 2021 shutdown of the Richland location, which was also closed with just 72 hours’ notice given to staff. However, it’s not all doom and gloom. Shari’s is revamping its loyalty program, promising that points will be usable soon. Some locations, like the one in Sacramento, continue operations, providing pick-up and delivery services under stringent health and safety protocols.
Who Bought Shari’s Restaurant?
Shari’s Restaurants, a favorite destination for pie lovers and breakfast enthusiasts, was purchased by Circle Peak Capital, a New York City-based private equity firm, in December 2005. Fast forward to the recent past, the MGG Investment Group has invested in 42 Shari’s restaurants in Oregon, aiming to aid their recovery from the financial blows dealt by the COVID-19 pandemic. It’s important to note that these investments are intended to support the current operations, not to acquire the entire chain.
Conclusion
So, Shari’s Restaurants is not going out of business even though some locations have closed. The company has faced financial problems, especially due to the COVID-19 pandemic, which caused some restaurants in Washington to shut down. However, a recent investment by MGG Investment Group and support from Gather Holdings LLC show a strong effort to help Shari’s recover and improve. They are working on making changes to their business and bringing in new leaders to better handle the market. As Shari’s focuses on getting back on track and making the customer experience better, it is clear that the brand plans to keep serving its loyal customers for many more years.
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