Ashland Food and Beverage Tax and a Struggling Economy are Forcing Local Restaurants to Close Their Doors
ASHLAND, Ore — Restaurants that have served Ashland for decades and closed their doors in recent weeks add fuel to the argument that the economy and impact of the local Food and Beverage Tax are the main reasons for their demise.
But Travel Ashland’s Director Dismisses the Claims
But these claims are dismissed by the director of Travel Ashland, Katharine Cato, who believes a variety of factors are responsible for the restaurant closures.
Cato goes on to state that the recent developments in the Ashland restaurant scene do not indicate a domino effect in the industry, and points to restaurants that have enjoyed a strong following this summer.
Cato refers to The Winchester Inn named the Best B&B in the 2024 USA Today 10 Best Readers’ Choice Awards, and to chef Josh Dorcak of MÄS Restaurant who was a nominee for a James Beard Award in 2023/24.
Cato also points to three new recently opened restaurants in Ashland – Skout, Coco Rico, and Osteria la Briccola.
Cato’s sentiments are echoed by the executive director of the Ashland Chamber of Commerce, Sandra Slattery who nevertheless concedes that the problems facing restaurants ‘have never been more challenging.’
Slattery says factors impacting restaurant closures include exhaustion among owners, staffing problems, and the cost of food.
Two Restaurants Close After a Combined 53 Years of Service to the Community
The Black Sheep Pub & Restaurant closed last month after 33 years of serving Ashland diners, and Clarinda Merripen co-owner with her husband Jon, described the local Food and Beverage Tax as ‘burdensome’ and the main reason preventing people from eating out.
Ashland imposes a 5% tax on all food and beverages sold in restaurants, and City Manager Sabrina Cotta says the income derived from the tax benefits the entire community, and visitors to the area.
The Food and Beverage Tax has generated $34 million since its introduction.
Another long-standing restaurant that has closed its doors in recent weeks is Cucina Biazzi, an Italian restaurant operating in Ashland for the last 20 years.
The Noble Fox Restaurant and Brewery catered to full houses when it opened in April, is now catering to dwindling numbers according to owner, Jeramie Mykisen, who goes on to describe Ashland as a ‘ghost town’ on many a night.
The National Restaurant Association says 63% of restaurant operators reported a drop in sales in July – this was the seventh consecutive month that restaurants suffered a decline in sales. Furthermore, 71% of operators reported fewer customers for the 16th consecutive month.
The Oregon Restaurant and Lodging Association’s director of government affairs, Greg Astley, has confirmed that ‘it is a difficult time’ for restaurant owners still battling post-pandemic economic challenges.
Astley points out that the challenges facing restaurants are ‘universal,’ saying that issues such as inflation increasing the cost of fuel and food, and utility fee hikes are adding to the burden. Astley says because of these mounting problems, exhausted owners of restaurants that have served the community for decades have been forced to close their doors.