Earlier today, Babalu, at 412 South Gay Street, announced its pending closure with posts on its social media sites:
It is with deep appreciation and sadness that we share this difficult news: After nearly a decade in downtown Knoxville, and four unforgettable years under our ownership, Babalu will be closing its doors on June 29th.We are deeply grateful for the memories, friendships, and meals we’ve shared with the Knoxville community. As we enter our final month, we invite you to stop by, raise a glass, and help us celebrate the incredible team and community that made Babalu so special
I spoke with CEO, Brian Tidwell, who works with Babalu and Maple Hall, which is owned by the same ownership group. He said last year was the worst year for restaurant bankruptcies since 2010. He attributes it to some degree to inflation in the costs restaurants incur, with their supply costs and rent. He said nationwide, restaurant sales are increasing, but that is deceptive due to price increases and foot traffic is actually decreasing as people feel the pinch and become more selective about where and how often they dine out.
Select markets and kinds of food seem more promising than the overall picture, and the ownership of Babalu just opened, Red Chimney Pizza, a pizza concept in Tellico Plains. He also said that Maple Hall with its broader focus on providing an experience while dining, is doing well.
Brian said, “We want to go out with a celebration with our customers, celebrating the good times and the memories we’ve created. The team has worked hard and we’re hoping to help them find a place with us or elsewhere.”
I also spoke to co-owner Kevin Rice, who added, “We are proud of our team and thank all of those who frequented Babalu. I hope people continue to support local businesses. We just opened a wood fired pizza place in Tellico Plains and hope to open a new concept in Knoxville in the near future.”