Incomplete list of announced United States food supply shutdowns for the month of March, 2016: Many food suppliers/distributors are consolidating operations and killing jobs due to the collapsing grocery store and restaurant industries, as well as rising costs of food production, spread of disease and extreme weather.
Nation’s Restaurant News reports yet another perfect storm of problems for the U.S. restaurant industry, this time mainly blaming employees. The top three issues are keeping “quality” employees, minimum wage increases and ObamaCare costs. Some restaurant executives admitted their low pay is the reason they can’t keep quality employees, but said the industry’s profit margins are too tight to significantly increase pay. Then doesn’t that mean the actual threat to the restaurant industry is the bad economy?
Anti-sugar soda-jerks are celebrating the news that U.S. soda consumption is at a 30 years low. Many think it’s because people are finally giving up on so-called ‘sugary’ drinks. Check the ingredient label on those ‘sugary’ sodas you jerks, because the overwhelming majority don’t contain any sugar at all! Since the 1990s soda-pop makers have been using GMO corn syrup! All those studies on ‘sugary’ drinks were really testing drinks made with GMO corn syrup. I personally choose sodas made with 100% sugar, not GMO corn syrup or those sickening diet sodas made with ungodly chemicals. Perhaps the real reason is that U.S. consumers are waking up to the fact ‘sugary’ sodas are made with GMO corn syrup, or maybe it’s the suck-ass unrecovered economy? (originally a soda-jerk was the employee who served you your fav soft drink at the local mom-n-pop establishment, now it refers to extremists who want to eradicate carbonated soft drinks)
Due to skyrocketing demand, the price of vanilla beans has tripled. But get ready for even higher prices as a major producer of vanilla, Madagascar, is reporting a low harvest for 2016.
Alabama: The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues as at least four Ryan’s restaurants were suddenly shutdown in as many cities.
Arizona: In Phoenix, Fuego Bistro shutdown its CityScape location. In Glendale, after 46 years restaurant La Peria shutdown due to not being able to pay its rent. In Scottsdale, Stingray Sushi shutdown. RT O’Sullivans sports bar-eatery shutdown on U.S. 60.
Arkansas: In Fayetteville, the AQ Chicken Express suddenly shutdown without warning and the AQ Chicken House also shutdown, according to an unnamed employee.
California: In Berkeley, after only two months “high-priced” restaurant Antoinette shutdown due to disagreements with the Claremont Club & Spa hotel. In El Segundo, after ten years restaurant Farm Stand shutdown. The owners hope to open a new restaurant with new partners somewhere in Los Angeles, sometime next year. City administrators of Stanton are suing to shutdown a thriving coffee shop. What’s the problem? GZ Cafe employs waitresses that wear bikinis (and even just pasties), however, there are reports that several customers complained to the city claiming some of the waitresses were showing off their ‘hardware’ to other customers. A next door barber shop owner praises GZ Cafe for greatly increasing his business! In Stockton the S-Mart grocery store shutdown, 50 jobs lost due to lack of profits. In Oakland, after 47 years restaurant Francesco’s shutdown: “There’s nobody to pick it up. So it’s going into history.”-Theresa Erwin, 3rd generation family owner
Colorado: In Steamboat Springs, after 34 years La Montana shutdown after being sold off. It’s hoped the new owner will keep the 38 workers employed with a new establishment.
Connecticut: In Stamford, after 50 years Pat’s Hubba Hubba restaurant shutdown.
Florida: The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues. This time reports that several Ryan’s Buffets shutdown without warning in Horry County. A local news report said as many as 3-hundred restaurants across the U.S. are affected by the sudden bankruptcy! In Miami, food service contractor Boykin Management issued a mass layoff WARN, 119 jobs lost by May! Tomato Land Farmers Market store-restaurant shutting down in April, due to the property being sold-off. In Tampa’s Ybor City, after 33 years The Spaghetti Warehouse Restaurant shutdown, no specific reason was given, but in 2010 the Church of Scientology became the new landlord. In Center Hill, Central Beef Industries issued a WARN, 214 jobs being eliminated between now and the end of May! For nearly a decade the meat packager was dumping water contaminated with salt and feces onto a rancher’s property. It took the rancher filing several court actions, and a plant manager turning whistleblower, to get any of the state and federal government agencies to act! The dumping was stopped, however, criminal charges against the food company were eventually dropped. So far there’s no explanation for the mass layoffs. In Jacksonville, after eight years O’Brothers Irish Pub shutdown: “I tell people that restaurants are like martinis: One isn’t enough and two is too many. We’re going back to one. It’s time to slow down.”-Drew Cavins, co-owner
Georgia: In Liburn, the Versace Dominican Restaurant hit by food contamination, revealed by surprise health inspections. The inspectors ordered the desserts and juices thrown out due to food poisoning (desserts & juices being made right next to raw meat, cooks not wear gloves or washing hands), and gave the eatery a health score of 47/U (failure). The health inspectors were there for a follow up inspection after a questionable inspection a month ago. In Atlanta, employees of Thirteen Pies pizza joint reporting they’ve been told they will become unemployed within 60 days. The company that owns Thirteen Pies, Raised Palate Restaurants, says no final decision has been made, however local news reported that Raised Palate Restaurants shutdown another food joint in the same plaza back in January. In Albany, after five years God powerless to stop Christian owned (Flint River Presbytery) non-profit Bare Bulb Coffee shop from shutdown due to road construction that killed customer traffic. In Atlanta, after more than five years H. Harper Station bar shutdown, the owner blames the landlord: “While signs point to the area’s impending development coming to fruition, it also brings the pressure of increased costs. After a great five-year run, we feel the model is no longer sustainable. We wish the best to the new tenant…”-Jerry Slater
Idaho: East of Boise, after 73 years iconic Ben’s Crow Inn shutting down by September. The owner admitted in the early years all he served was pizza and beer. Now it’s famous for seafood and steak. The owner also admitted that the ever expanding metro of Boise has jacked up local property values so much that he couldn’t refuse an offer from a greedy property developer. In Boise, after only four months the brand new Boise Co-op grocery store located at The Village at Meridian laid off 29 employees, due to lack of sales! Boise Co-op opened the store in November 2015 expecting big sales because Maureen Valko, Boise Co-op marketing manager, assumed “There’s a demand for a good, natural food store on this side of town….” It should be noted that also in 2015 Boise Co-op was hit with numerous health code violations by city inspectors, in connection to a June 2015 salmonella outbreak at an older store. So much for ‘natural foods’. Also in Boise, it was revealed that Idaho Heritage Inn was sold-off last month, the former owner blames a 20% crash in bookings on Airbnb.com. However, it should be noted that the bed-n-breakfast owner accepted a healthy offer from Saint Luke’s Medical Center for the land. Recently Mexico’s Minister of Trade Armando Orellana died. Idaho’s government and agriculture industry are officially mourning Orellana as he’s credited for making Idaho a major ag partner for Mexico, generating $191-million USD in sales for Idaho’s minority (mainly corporate owned now) farmers-ranchers, just in 2015: “Idaho agriculture lost a great friend. He touched many lives over the years and the tragic loss of Armando will be felt throughout Idaho.”-Celia Gould, Idaho Department of Agriculture (Idaho even has its own website promoting itself in Mexico) Some good news for Idaho; New York based yogurt maker Chobani announced plans to expand what is already the world’s largest yogurt factory, in Twin Falls, primarily to make products for sale in Mexico! An update on that false organic seed selling operation that ripped off dozens of farmers east of the Rockies for five years; one of the co-owners of Saul Farms/Bliss Seed pled guilty to mislabeling products. Prosecutors say the seed sellers sold ‘inorganic’ seed at organic seed prices, getting at least $1 USD per pound more than they should have, resulting in $1.9-million USD in fraudulent sales!
Illinois: In Moline, bankrupt FMP owned Ovation Brands/Buffet LLC Ryan’s Steakhouse shutdown without warning, pissing off employees. The restaurant was shutdown officially for an “asset inventory”, but then, the employees were told they could pick up their final paychecks! In Naperville, after 3-million customers the 21 years old Zero Gravity Food-Dancing club shutdown. Rumors say it’ll be replaced with a bigger operation. In Chicago, after two years critically acclaimed restaurant Tete Charcuterie shutdown without warning over the weekend, due to lack of sales. In Frankfort, Burger King shutdown their Town Center location without explanation. Food giant Tyson issued a shutdown WARN, 170 frozen food jobs eliminated between April and August! In Elk Grove Village, food service company Sodexo issued a shutdown WARN, 54 jobs lost by the end of April.
Indiana: In Fort Wayne, Gropp’s Famous Fish of Stroh shutting down due to the retirement of the owners. The family hopes to make money by licensing its secret recipes.
Iowa: The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues. This time a Ryan’s in Clive, and an Old Country Buffet in Des Moines shutdown without warning. Chain restaurant Village Inn shutdown its Lindale Mall location without warning, administrators blamed it on high rent
Louisiana: In Baton Rouge, after 49 years the elitist private membership only eatery Camelot Club suddenly shutdown due to “declining membership and a dramatic increase in rent”. In Baton Rouge, restaurant supplier Ready Portion Meat shutdown their 56 years old retail operation this past Friday, and eventually will end wholesale ops as well. It’s connected to the 2013 sale of the company to Washington based government contractor Mobius Industries. Administrators with Mobius refused to give job loss numbers, but blame the shutdown on crashing sales to the restaurant industry, a 20% crash just last year: “We put a tremendous amount of effort into increasing sales in the last year or two and haven’t been able to get that magic to happen.”-Brian Clayton (the claim of crashing restaurant industry sales is interesting because every year the National Restaurant Association claims sales are way up)
Maine: In Portland, after 40 years Paul’s Food Center shutting down, and being sold-off due to the death of the owner.
Maryland: The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues as the Hagerstown Ryan’s restaurant shutdown without warning. Allen Harim Foods shutting down their 71 years old Cordova operations, 3-hundred jobs lost as the company consolidates ops to save money! In Amherst, beef eatery White Hut shutting down by the end of the month. The family owners say sales have only been “modest” and not enough to justify renewing the lease. They hope their flagship Great Depression era restaurant in West Springfield doesn’t meet the same fate. After 58 years Harbin Farms shutting down due to A-Hole zoning rules which will impose at least $375-thousand USD of property upgrades upon the family owners: “We’re probably going to move. We have to remove ourselves from what once was.”-Kim Taylor
Massachusetts: Yet again, Chipotle restaurants are being shutdown due to people getting sick! This time an employee at their Billerica location got sick with norovirus. After 47 years Johnny D’s Restaurant Music Club shutting down this weekend. In Needham, after 18 years Cowlicks Deli suddenly shutdown due to the new landlord refusing to renew the lease. The new landlord is convenience store chain 7-Eleven. After 32 years Au Bon Pain shutdown their Harvard Square restaurant apparently because of property remodeling by Harvard University. Administrators say “We continue to search for a location in this area.”
Michigan: The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues as the Battle Creek Old Country Buffet shutdown and was auctioned off. In Lansing, 50 years old restaurant House of ING shutdown. The owner says he must focus on his other restaurants. Feeding America shutting down its warehouses in Ishpeming and Sault Set Marie, claiming they’re moving to a larger operation. However, several food banks are reporting that the move by Feeding America is actually forcing them to shutdown. The Ishpeming Food Bank and Tom’s Pantry in Quinnesec both point out that even though Feeding America’s is moving to a larger location the delivery times aren’t compensating for the further distance, meaning food banks will have to expanded refrigerated storage and/or hire delivery trucks to make extra food runs: “Because they only come up twice a month, you’re going to have to have a lot more refrigeration space than what I have. You’re going to have to have pickups and trailers in order to pick up your food. This is going to cause us to have to close.”-Mary Dixon, Tom’s Pantry
Minnesota: In Minneapolis, Maison Darras sandwich shop and the U.S. Postal Service extension office being forced to shutdown on Thursday, due to massive $20-million USD remodeling of Baker Center. News reports say the sandwich and postal operations will not resume because the ‘Skyway’ is being eliminated by the remodel work. Ferrara Candy shutting down their Winona factory and consolidating to its factory in Illinois, more than 120 Minnesota jobs lost! In Saint Paul, after 38 years Bonnie’s Cafe being shutdown by the greedy landlord who refused to renew the lease: “We were never offered to renew the lease……I never thought it would end!”-Becky Moosbrugger
Missouri: After two years of booze and coloring books, ArtBar St. Louis shutdown without warning due to “circumstances beyond my control.”
New Mexico: In Santa Fe, iconic Santa Fe Baking Company and Cafe shutdown on 15 March, without warning due to “new ownership”. Loyal customer Kerth Lundell bemoaned “I came for a breakfast burrito…This is the go-to place….” A local radio host who does her morning shows from the restaurant, Mary-Charlotte Domandi, is pissed: “I have no idea what is going on. My equipment is still in there!”
Nebraska: In Lincoln, after 21 years Doozy’s sandwich shop shutting down: “There are a number of reasons….We have other jobs and other things happening.”-Tafe Sup Bergo, co-owner
New York: What was that about not being able to keep “quality” employees? In NYC, the Shake Shack settled a lawsuit for failing to pay nine mangers their due, yet at the same time publicly stated they were not guilty of shorting their managers about $50 per week in pay! In Montauk, the Sloppy Tuna restaurant shutdown due to the co-owners filing lawsuits against each other. The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues as the Amherst Old Country Buffet was suddenly shutdown. In SoHo, pub Puck Fair shutting down due to the property owner tearing down the building. British empire owned Chartwells lost their food service contract with Nazareth College, 90 jobs lost by May (Chartwells is owned by British empire Compass Group, which runs food ops for the military and prisons, and owns other food servers that’ve been involved in scandals such as lying about meat product ingredients in Europe and underpaying U.S. employees!). Food service company HMS Host issued a layoff WARN for their JFK Airport ops, 134 jobs lost due to loss of contract! NYC based research company Nielsen says the U.S. bar industry is now in an official Death Spiral. Every month an average of 334 new bars open across the U.S., but, that pales in comparison to the 609 per month that shutdown (and that’s why it’s a death spiral, more deaths than births)! It’s blamed on jacked up rents, increasing competition from restaurants serving booze and increasingly restrictive laws. It’s been revealed that troubled NYC based restaurant chain Fig & Olive eliminated an undisclosed number of jobs, revealed by at least four former employees. Fig & Olive had to shutdown restaurants back in 2015 because of a salmonella outbreak. In Buffalo, the Blue Monk beer church (just kidding) shutting down sometime between April and May. A co-owner of the brew-pub says his partner is also the landlord’s son, and they no longer get along! Oceanside Institutional Industries issued a shutdown WARN for their food service linens operations, 171 jobs lost by mid-June! In Rochester, Corner Bakery Cafe suddenly shutdown after the owner posted a sign that said “will be closing early tonight.” Local news reports blame it on property developers.
North Carolina: In Raleigh, after four years ‘night life’ joint and former restaurant Zinda shutdown, no explanation. In Beaufort County, after 18 years the Golden Corral suddenly shutdown on Friday, rented Uhaul trucks were carting away the contents of the restaurant. Local news media said there was no explanation from the corporate office. In Durham, Bar Lusconi shutdown.
Ohio: Grocery store giant Kroger warning investors that same store sales crashed in the last three months of their fiscal 2015 (for the entire year their sales were still up)! Kroger owns stores that sell more than just food, but administrators warn that across the board sales will be down for 2016, which breaks Kroger’s record of more than 12 straight years of sales increases! Kroger administrators blame competition, and deflation which will kill profit margins. Atwood Lake Resort and Golf Club shutting down: “Management informed us it is no longer economically feasible to continue operations due to the current economic state.”-Bob Wirkner, Carroll County Commissioner
Oregon: The Kroger owned Fred Meyer distribution center in Clackamas is threatening 2-hundred jobs, as Kroger decided to find a new contractor to provide the labor! Bankrupt Washington based Haggen (assassinated by Albertsons-Safeway) issued shutdown WARNs for their Clackamas, West Linn and Oregon City grocery stores, 208 jobs lost by mid-May! Washington based Starbucks coffee rip-off artist suddenly shutting down their Lancaster Mall shop this weekend. The press release gave no explanation why, and local news sources said even the employees refused to talk!
Pennsylvania: In Philadelphia, Perch Pub shutdown, the building’s owner wants to construct a hotel. In Fredericksburg, after 28 years ‘natural’ food store The Pantry Self shutdown due to the death of the owner. The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues. This time the Old Country Buffet in Summit Township suddenly shutdown, claiming it was for “asset inventory” and asking employees to return for an update. In Wilkes-Barre Township, two Old Country Buffet restaurants shutdown without warning, leaving almost 1-hundred people without a job! Weis Markets shutdown its 56 years old Manchester Township grocery store claiming it’s too small: “Given the age and size of the building, it was no longer possible to operate a full service supermarket in this location.”
South Carolina: The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues. This time six Ryan’s restaurants (in Columbia, Conway, Greer, Orangeburg, Spartanburg and Surfside Beach) suddenly shutdown, at least 4-hundred jobs lost! Two Ryan’s restaurants suddenly shutdown in Upstate South Carolina leaving 80 people without a job. Local news reports say this is the third bankruptcy for Ovation Brands/Buffet LLC since 2008! Nation’s Restaurant News reports that 92 restaurants across the country were shutdown over the weekend without warning! That’s on top of 74 restaurants shutdown last month, for a total of 166 in the past five weeks! Not only did they shutdown the restaurants without warning, but they quickly removed cooking equipment and hauled it away (this must be what they mean by “conducting asset inventory”)! Ovation Brands/Buffet LLC was taken over last year by Texas based FMP (Food Management Partners). In the bankruptcy filing FMP claims their take over of Ovation Brands was a big money losing mistake as sales immediately crashed by 22%! Nation’s Restaurant News discovered that FMP is a Mitt Romney-Bain Capital style vulture capitalist group that is responsible for the sudden shutdown of California based Catalina Restaurant Group’s Coco’s Bakery and Carrows restaurants last year! “FMP has also acquired Don Pablo’s, Furr’s Fresh Buffet and Zio’s Italian Kitchen.”
Tennessee: Kroger shutting down their Memphis grocery store on South Perkins, admitting they built (or took over) too many stores, several within a mile of each other!
Texas: In Houston, after two years Georges Bistro shutdown, the husband and wife immigrant owners (who’re longtime Houston restauranteurs) are getting the hell outta Dodge and returning to their home country of France! In Houston, bar Hughes Hangar suddenly shutdown, owners won’t explain, but there’s speculation that a recent electrical fire might have something to do with it. Fiesta Mart shutting down their 40 years old North Shepard grocery store for “business reasons”. Basically the store needed upgrades and the company administrators believe it’s not worth it (this has become a common excuse for shutdowns in the retail sector). 1-hundred jobs lost! In El Paso, Bruce Foods shutting down, 171 jobs lost by May! In Cleburne, Caddo Street Grill shutting down, the owners directly blaming the Affordable Care Act: “The Obamacare mandate has effected us in ways that do not effect other local restaurants, due to the various businesses we own. This forces us into an uncompetitive business environment and it is no longer viable for us to continue in the restaurant business.”
Virginia: Just short of a year Shoryuken Ramen shutting down its noodle eatery on Virginia Commonwealth University campus in May. In Danville, Bubba’s Ice Cream shutting down and selling the property. Irony; the ice cream shop owner is selling the property so he can retire, and he’s selling it to a nursing home. Martin’s shutting down three grocery stores by Summer, they are not part of the shutdowns due to the merger of Giant Food and Food Lion, but are the result of a decision back in 2015. Another ten Martin’s stores in Virginia will be sold off as part of the merger! Hundreds of jobs lost! In Norfolk, Empire Little Bar Bistro shutting down in April, can’t renew the lease. The owners blame never ending construction and city trash dumpsters taking up precious space in the parking lot for crashing sales. In Clarendon, after four years Grateful Red Wine & Gifts suddenly shutdown. The owners decided the rent for their brick-n-mortar op was too expensive and they will continue sales on the internet only. In Radford, after 17 years Wade’s Foods shutting down, the owner blames skyrocketing costs and competition with big corporate stores, more than 50 jobs lost. Local news says plans to shutdown were made last year. In South Richmond, after less than six months White Horse Tavern shutdown due to lack of dinner sales. News reports say yet another restauranteur is about to take a whack at opening an eatery in the same location. The saga of the sudden mass FMP owned Ovation Brands/Buffet LLC bankruptcy continues as the Old Country Buffet shutdown without warning or paychecks in Alexandra. Local news reports revealed the so called “asset inventory” is a cover for mass auctioning of kitchen equipment: “Each store contains everything from kitchen equipment and smallwares to furniture and decor. To be able to bid on the entire Alexandria VA Old Country Buffet is an amazing opportunity for anyone in the restaurant business!”-Jose Paz, vulture auction manager
Washington: In Bellingham, Albertsons-Safeway shutting down their 56 years old store on Birchwood Avenue, 66 jobs lost by May. Bankrupt Haggen issued more shutdown WARNs for its grocery stores; Puyallup, Port Angeles, Federal Way and Burein, 270 jobs lost by mid-May! Despite being killed off by Albertsons-Safeway, by being tricked into buying more than 1-hundred money losing Albertsons stores, Haggen is now attempting to sell 33 of its remaining stores to Albertsons-Safeway! In Spokane, after almost 60 years Williams Seafood suddenly shutdown on Saturday. The owner blames increasingly low quality of imported seafood and damage from a windstorm back in November.
Washington DC: Restaurant GDB (Golden Brown Delicious) shutdown suddenly.
Wisconsin: In New Berlin junk food maker Mexican Accent issued a WARN, 155 jobs lost by the end of April! Food service company and construction industry supplier Mantiwoc Company announced layoffs for their operations in Manitowoc and in the state of Pennsylvania. No numbers were given but it’s part of Mantiwoc Company’s “right sizing” which recently included the spinning off it’s construction crane maker subsidiary called Cranes. In Middleton, Max’s Farm Table shutdown. The pissed-off owner revealed he recently spent $1-thousand USD for one week of advertising, yet still his restaurant went several hours per day without a customer: “Sales aren’t even close to where they need to be to justify continuing to invest. Not even close!”-Max Harn, who also said the rent was too high for the unpredictable location
WARN=Worker Adjustment & Retraining Notification
February 2016: “it’s killing me to give it up, but I have no choice.” “This feels personal…”
WinCo: Conspiracy to destroy California’s economy?
31 March is U.S. federal commemorative holiday Cesar Chavez Day.
