Shari's Cafe & Pies Closes Portland-Area Locations: The Chain Is Done for Good in Oregon

Shari's Cafe & Pies, a family dining chain founded in Hermiston and long known for its pies, hexagonal buildings and 24-hour service, has closed its Portland-area restaurants and appears to be done for Oregon.

Sunday's closings affected restaurants in Beaverton, Gresham, Hillsboro, Oregon City, Portland and more. Locations elsewhere in the state have been slowly closing for several weeks.

Shari's once claimed to be the largest sit-down restaurant chain in the Pacific Northwest. As recently as 2017, it boasted 95 locations across six states.

In an email sent to employees Sunday and later reviewed by The Oregonian/OregonLive, the restaurant chain's parent company managing member Sam Borges said all Shari's locations in the state would close by 5 p.m. that day. Borges, who did not respond to a request for comment, wrote that all employees will be paid until the end of the work.

“I personally thank Shari's employees, especially those who have worked tirelessly over the past 14 months to overcome the constant challenges of a changing and uncertain business environment in hopes that their efforts will result in a different outcome than the one we face today,” Borges wrote in the letter. .

Shari's restaurants in California, Washington and Idaho remained open as of Monday evening, according to employees there.

Shari's opened in 1978 in Hermiston. In its heyday, Shari's was known for its extensive pie offerings, bottomless cups of coffee, and being open 24 hours. In small towns, restaurants became the center of the community.

In 2023, the company announced that MGG Investment Group had invested in the chain's Oregon restaurants. At the time, it said there were 42 in the state, and Gather Holdings founder Borges cited MGG's “deep knowledge of video lottery gaming operations.”

The Oregon Lottery reported Monday that it had learned Shari's had closed for good. Officials were already working to retrieve terminals and other equipment from the closed restaurant, according to a letter to employees from lottery director Mike Wells.

“Shari's was an Oregon institution and longtime lottery retailer,” Wells wrote in the letter. “I'm sure many of you have fond memories of late night comfort food, Sunday breakfasts or delicious pies.”

The Willamette Week first reported on the lottery letter Monday afternoon.

According to Wells' letter, when Shari's locations close on weekends, the game largely shifts to neighboring retailers, indicating that Shari's closings are unlikely to dramatically reduce revenue. Still, Oregon Lottery spokeswoman Melanie Mesaros acknowledged that the impact on Oregon Lottery revenue is “possible.”

According to figures provided by Mesaros, Shari generated just over $34 million in video lottery sales in fiscal year 2024.

Mesaros said Sharis has been closing the restaurant for the past few weeks. After lottery officials learned of the closing, they went in and retrieved their equipment, Mesaros said.

The Oregon Lottery learned Shari's was closing permanently in Oregon Monday morning, he said, after officials heard about more possible closings and the Oregon Lottery contacted a company representative. According to lottery numbers, the chain started the year with 42 locations and was down to 17 this weekend.

“I can confirm that all of Shari's restaurants in Oregon are closed at this time,” Borges told the Oregon Lottery by email Monday.

In his note to lottery staff, Wells wrote, “This major shutdown is uncharted territory for all of us.” Mesaros said the director was referring to the fact that the lottery had never seen a major retailer shut down lottery games like this before.

In August, KGW News reported that the Beaverton-based chain faced unpaid bills, back taxes and eviction notices, with at least seven Shari's restaurants in Washington and Idaho closing unexpectedly in the previous five months.

Shari owes the Oregon Lottery more than $900,000, according to Mesaros.

“Each week, our retailers deposit money into an account for our 'draw' or video lottery game due revenue,” he explained. “When a retailer fails to pay their weekly electronic funds transfer draw and the bank does not pay due to 'insufficient funds' or NSF, they must pay us immediately or our equipment will be disabled.”

The Oregon Lottery learned this month that the chain had an NSF “and was unable to repay us or provide a bond required by administrative rules. They will owe us the rest of the time the terminals are open this weekend,” Mesaros said.

That brings his total due, according to Mesaros, to $902,341.98.

On its website, Shari's still boasts of being “the largest full-service restaurant chain in the Pacific Northwest,” with locations in Oregon, Washington, California, Idaho, Nebraska and Wyoming. At its peak, the company had about 4,000 employees, including 1,600 in Oregon, according to the website. Those days are numbered.

An old Shari's map shows the remaining 16 restaurants in Oregon The map includes eight in the Portland area, and a lone Vancouver location at 11717 NE 76th St. The Oregonian/OregonLive first confirmed that several of those locations were closed as of Sunday.

In the past month, Shari's locations in Keizer, Redmond, Bend, Medford and Pendleton have closed, according to local news reports.

Last Friday, The Oregonian/OregonLive spoke with employees at six metro area Shari's locations. All said they had been informed by management that their positions were “safe” from closing.

A longtime employee of Shari's at 11335 NE Airport Way estimated that about 50 restaurants have already closed companywide. But their location — with its popular video lottery machines and proximity to the airport — would be the last to close in Oregon, they were told. As of Friday, that location was also the last in the chain to remain open 24 hours.

As of Monday morning, calls to the Airport Way location were not answered.

A decade ago, Chariz at Airport Way ranked as the fourth-largest retailer for the Oregon Lottery by sales, generating nearly $1.5 million in 2014, according to the Oregon Lottery's annual comprehensive financial report. No Shari's stores have made the most recent ranking.

— Michael Russell; mrussell@oregonian.com

— Jonathan Bach; jbach@oregonian.com