Shari’s Restaurants facing financial problems, KGW reports: Unpaid bills, taxes, Bend eviction notice over unpaid rent

PORTLAND, Ore. (KGW/KTVZ) — Shari’s is an institution in the Pacific Northwest. The family-style restaurants are known for their award-winning pies and late-night meals. But KGW reports that court filings and public records indicate the Beaverton-based chain is now facing tough times, including unpaid bills, back taxes and eviction notices.

At least seven Shari’s restaurants in Washington and Idaho have closed unexpectedly in the past five months.

Sara Thomas, president of Charlton Marketing, said Shari’s Management Corporation owes the small Portland ad agency more than $100,000 for its work on a marketing campaign last year.

“I’ve had to lay off staff. I’ve had to really look at my bottom line,” said Thomas. “To Shari’s, I don’t know how much money that means to them, but to us it means a lot.”

Other vendors, including a construction company and a plumbing company, also have unpaid bills.

And two property owners have filed eviction notices. In August, a property owner in Bend sued Shari’s Management Corporation for failing to pay rent, according to court records. In Kitsap County, Washington, a lawsuit claimed the restaurant chain has racked up over $150,000 in unpaid rent.

Additionally, the Idaho State Tax Commission has six active tax liens against Shari’s Management Corporation for roughly $220,000 in unpaid taxes.

Shari’s Management Corporation didn’t respond to multiple phone calls or emails from KGW. Its corporate offices in Beaverton were empty. Representatives at the company’s Dallas, Texas offices could not be reached.  

Shari’s first opened in Hermiston in 1978. The restaurant chain has more than 60 locations across Oregon, Washington, California, Idaho and Wyoming, according to the company’s website. The hexagon or six-sided restaurants brought together families and often served as a late-night hangout for high school kids.

“It’s very local to the neighborhood. I grew up coming here a lot,” said Deanna Kavanaugh, standing alongside her mother outside the Shari’s in Garden Home.

“It’s getting harder and harder to find places you can take a family to. It’s really a family restaurant,” said Kavanaugh’s mother, Charlotte Honse.

One long-time customer said the restaurant felt a bit empty during a recent visit. Some menu items were not available.  

“They talked about being out of some things,” said Jennifer Germundson, visiting Shari’s with her four grandchildren.

In 2023, a private investment firm made an investment into Gather Holdings, LLC, the parent company of Shari’s Restaurants and Coco’s Restaurants. The financial terms of the deal were not disclosed. “This new capital will ensure our restaurants can continue their recoveries from the challenges presented by the COVID-19 pandemic,” said Sam Borgese, owner of Gather Holdings, in a press release.

The company suggested the investment firm would help with video lottery operations at its Oregon locations, according to the press release.

In 2023, Shari’s Restaurants made $34.7 million in video lottery sales, generating $7.5 million in lottery commission, according to data posted on the Oregon Lottery website.

Despite the infusion of capital and video lottery sales, the Beaverton-based restaurant chain appears to be struggling with mounting bills and lawsuits.