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Updated: October 18, 2024

Friday Food Insider: Inflation and wage pressure contributed to some recent restaurant closures

Salvage BBQ exterior. Photo / Peter Van Allen Salvage BBQ was based at 919 Congress St. in Portland.

This week, Portland has seen a slew of longtime restaurants close, including North Point, Salvage BBQ and Local 188. 

On Oct. 13, the North Point owners, brothers Dan and Noah Talmatch, announced via social media that they would be shutting their doors for the last time.

Dan Talmatch told Mainebiz that it was becoming too difficult to turn a reasonable profit. Prices, suppliers, staffing and diminishing business have all contributed to the challenge. It was simply time to get out before it was too late.

North Point restaurant exterior.
Photo / Peter Van Allen
The North Point restaurant was at 35 Silver St. in Portland.

"As to what's next, I'm still busy here, cleaning up and cleaning out, considering offers from folks looking to take over and evaluating other opportunities personally," said Dan. 

The North Point opened at 35 Silver St. in February 2013 and served specialty cocktails, wine, craft beer and sharable plates.

Other closures 

On Monday, Local 188 and Salvage BBQ, two longtime Congress Street restaurants, announced they would be closing. 

Owner and chef Jay Villani has not announced the shuttering on either venue’s website or social media accounts. However, previous reports showed a sign that had been posted on Salvage BBQ’s door indicating the closure and thanking patrons for 10-plus years of business. 

It was not clear if Villani plans to change operations at Black Cow Burgers & Fries, a cocktail bar, soda fountain and burger joint her also owns in the Old Port.

Over the past month, more than a half-dozen restaurants in the Portland area have announced closures, including the Muddy Rudder, a landmark Yarmouth seafood spot, and two other Yarmouth restaurants, Thoroughfare and Handy Andy's store. 

Back in Portland, closures have recently been announced at Ohno Café in the West End, downtown Chinese restaurant Golden Lotus, the Preble Street pizza joint Slab, Sisters Gourmet Deli in Monument Square and Thistle & Grouse, which had launched 10 months ago on Cotton Street.

Local 188 restaurant building.
Photo / Peter Van Allen
Local 188 was based at 685 Congress St. in Portland.

After all the closures, Portland foodies might wonder what is next for the dining scene, whether more closures are expected, and why there are so many.

Quincy Hentzel, CEO and president of the Portland Regional Chamber of Commerce, told Mainebiz that restaurants are still suffering from significant staffing shortages. Inflation is also pushing up the cost of everything, including food and wages. 

"In Portland, restaurants need to deal with the emergency wage ordinance, which is unpredictable and increases minimum wage by 1.5 times when we are in a state of emergency, regardless of whether that emergency is impacting Portland," said Hentzel.

"Plus, they are facing the impact of inflation on consumers, causing people to eat out less and be very particular about how and where they spend their money. It’s economics — the numbers do not work."

Hentzel says that as we move into the winter, she fears more restaurants will make similar difficult decisions to shutter. 

The Friday Food Insider is working on some fun stories for the coming months. What changes have you seen in the Maine restaurant world? The Mainebiz Food Insider wants to hear from you! Contact Alexis Wells at awells@mainebiz.biz.

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