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Recent Portland restaurant closures signal need for new business model

As tourist season winds down in Maine, a slew of Portland restaurants have announced closures. And some of them — like Local 188 and Ohno Cafe — have been open for decades.

Kathleen Pierce of Hospitality Maine said that the closure of long-term restaurants seems unusual but she doesn’t see it as an overall trend. She said reasons for closures can vary, but pointed to inflation and labor as main contributors.

“Rising food and labor costs have increased by nearly 30%, we have a worker shortage, which is further compounding these issues, as well as rent,” she said.

Pierce said some restaurants are opening up outside of Portland in towns like Saco and Biddeford, where rents are more affordable.

With costs rising, she said restaurants are considering models that look similar to those used during the pandemic, when many restaurants were forced to rely on take-out style.

“I think we're going to see more quick serve, as opposed to the traditional sit down or restaurant that requires a lot of employees,” Pierce said.

Garrett Lunderman has worked in the Portland restaurant scene for two years. He is now opening an all-day cafe called Cuties in Portland. He said rising costs and lack of labor played a role in choosing the model of Cuties, which will focus on drinks with to-go food options, rather than sit-down service.

“It's easy to tell yourself, ‘Well, I have a really strong work ethic,’ but at the end of the day, if your model is not bringing something to a city or to a neighborhood that it needs and it doesn't make sense financially, then in the broad scope, things are just not going to work out,” he said.

Lunderman said he is especially sad to see Local 188 leave Portland’s West End.

“People had so many awesome memories there. It was giving people a community and a place to celebrate,” he said.

Local 188 had been open for 25 years. Ohno Cafe, Salvage BBQ, Thistle & Grouse, Slab Sicilian Street Food, the Golden Lotus, Sisters Gourmet Deli's Portland location, Coals Bayside Pizza, and the North Point have also closed recently, according to posts on their respective social media profiles.

Tulley is Maine Public’s Digital News Producer, focusing on making Maine Public's news stories accessible across digital platforms.