News writer
In a shock to many residents of the state, a well-known breakfast chain in Oregon has abruptly closed all its locations. The Oregon Lottery may have been left even more shocked, as the restaurant chain closed with an outstanding debt of almost $1 million to the Oregon Lottery.
Shari's Café and Pies closes up shop in Oregon
As of Sunday, October 20, 2024, Shari's Café and Pies had closed all statewide locations in Oregon, according to the Oregon Lottery.
For those that have never heard of Shari's Café and Pies, the chain is headquartered in Beaverton and is popular for its late-night food and pies. However, they have also brought in millions of dollars in Oregon Lottery revenue through its gambling machines.
The restaurant had video lottery games inside their businesses. As one user wrote on X regarding the closure of Shari's, “Let's have some pie and play some video poker.”
Lottery debt owed to the state
According to the Oregon Lottery, Shari's gave the state $34.13 million in video lottery revenue between June 2023 and June 2024. From that revenue, Shari's earned a commission of $7.45 million.
Now, with Shari's closed, Melanie Mesaros, a spokesperson for the Oregon Lottery, said they are working on getting those lottery machines back.
"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. When a retailer fails to pay their weekly electric fund transfer draw and the bank does not pay due to nonsufficient funds (NSF), they are required to pay us immediately, or our equipment will be disabled," Mesaros said in an email, according to KTVL. "We learned Monday that Shari's had an NSF on October 16 and was unable to repay us or provide a bond required by administrative rule."
Because of that situation, Mesaros said the restaurant chain, which is owned by Gather Holdings, still owes the Oregon Lottery $902,341. In addition, they owe any revenue from the terminals that were open through the weekend.
Mesaros said they are in the process of terminating the contract for Shari's and if they aren't paid, then the debt would go to collections. She said that Shari's has until October 28 to pay the Oregon Lottery or pay the bond amount of $877,000.
'Uncharted territory'
While many Oregonians were shocked at the closure of Shari's, Oregon Lottery director Mike Wells told his staff the closures came after years of struggle for the restaurant chain.
"Shari's was an Oregon institution and a long-time Lottery retailer. I'm sure many of you have memories of late-night comfort food, Sunday breakfast, or tasty pies," reads the email obtained by KTVL. "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 the Lottery and for the State of Oregon."
Wells went on to say that this closure is “uncharted territory,” but the slot machines in Shari's restaurants were shut down the week before due to lack of payment, and the revenue would likely flow in through other locations.
As of Friday afternoon, Shari's locations in Washington are still open.
Enjoy playing the Oregon Lottery, and please remember to play responsibly.
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