Restaurant chain Shari's shutters all Oregon locations after owing $900,000 to Oregon Lottery

Oct 23, 2024, 3:51 pm (6 comments)

Oregon Lottery

Financially struggling lottery retailer shuts down across Oregon 

By Kate Northrop

Shari's Café & Pies, a beloved late-night restaurant chain, has shuttered all its Oregon locations after failing to pay the Oregon Lottery an outstanding debt of $900,000.

Lottery retailer Shari's has closed all of its Oregon locations following a history of financial hardship, including a debt of over $900,000 owed to the Oregon Lottery.

Founded 46 years ago, Shari's became well-known for its 24-hour service and wide variety of pies. By 2017, the chain had expanded to 95 locations across several states.

In August, the chain revealed it had been struggling with overdue bills, unpaid taxes, and even eviction notices. The number of nationwide restaurants shrunk to 49 earlier this month. As of Sunday, Shari's has shuttered all its Oregon locations, bringing the total number of locations to 17.

"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," Shari's CEO Samuel Borgese said in a letter obtained by The Oregonian.

Shari's was also a popular lottery retailer, where patrons could enjoy the video lottery terminals while sipping on a cup of coffee. Among its debts was a substantial $902,341.48 balance owed to the Oregon Lottery.

"Each week, our retailers deposit money into an account for what's called our 'draw,' or the revenue that's due to us for Video Lottery play," Mesaros explained to The Oregonian. "When a retailer fails to pay their weekly electronic fund transfer draw and the bank does not pay due to 'non-sufficient funds,' or NSF, they are required to pay us immediately or our equipment will be disabled."

The Lottery learned earlier this month that MGG Investment Group, the owner of the restaurant chain, had non-sufficient funds.

"We're in the process of terminating their contract," Mesaros told KATU in an email. "If we aren't paid, the debt will go to collections."

Shari's brought in $34.7 million in video lottery sales in Fiscal Year 2024, according to the Oregon Lottery. As the Oregon locations gradually continued to close, the Lottery has been visiting each restaurant one-by-one to retrieve their equipment.

This was the first time the Oregon Lottery has ever witnessed one of its major retailers close in such an abrupt and large-scale fashion, calling it "uncharted territory." Although an impact on Lottery revenue is "possible," Mesaros said, it's unlikely to significantly affect sales, as lottery players will likely take their business to neighboring retailers.

"Shari's was an Oregon institution, and a long time Lottery retailer," Lottery Director Mike Wells said in a letter to Lottery staff. "I'm sure many of you have memories of late-night comfort food, Sunday breakfast, or tasty pies. That said, Shari's has struggled for years, and we've supported them as they tried to work through solutions. With the closure of all restaurants, the financial risks in continuing to partner are simply too great. I take no joy in this decision, but it's the right one for Lottery and for the State of Oregon."

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Lottery Post Staff

Comments

Brock Lee's avatarBrock Lee

among the many culprits are door dash, uber eats, etc. the younger generations just don't eat pie as much as generations past (cookies and cupcakes are more on trend nowadays), and i know it sells omelets and sandwiches and stuff, but most people who have heard of it associate it mainly with pie. these kinds of specialty diners have a better chance of surviving in really dense urban areas with a lot of foot traffic. ultimately, it not the fault of any elected official but the owners who just couldn't figure out how to keep up with the times. 

pour one out for shari's.

Todd's avatarTodd

I removed the political comments.  I know we are in election season here, but let's keep politics out.

cottoneyedjoe's avatarcottoneyedjoe

Quote: Originally posted by Brock Lee on Oct 24, 2024

among the many culprits are door dash, uber eats, etc. the younger generations just don't eat pie as much as generations past (cookies and cupcakes are more on trend nowadays), and i know it sells omelets and sandwiches and stuff, but most people who have heard of it associate it mainly with pie. these kinds of specialty diners have a better chance of surviving in really dense urban areas with a lot of foot traffic. ultimately, it not the fault of any elected official but the owners who just couldn't figure out how to keep up with the times. 

pour one out for shari's.

I've never been to a Shari's but Google Maps shows 4 of them in NoCal. They look a lot like Denny's. Maybe Denny's can buy them out.

winterhug

No Dennys won't be buying them out because they are currently in the process of closing 150 of their locations.

winterhug

Thanks for removing the political comments. Unfortunately no matter what the topic is someone brings politics into it.

Artist77's avatarArtist77

Quote: Originally posted by winterhug on Oct 26, 2024

Thanks for removing the political comments. Unfortunately no matter what the topic is someone brings politics into it.

🤣

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