What It Takes to Run a Restaurant Right Now in Central Oregon

Running a restaurant in Central Oregon in 2026 is not for the faint of heart; by nearly every account, it’s harder than it has ever been. But the ones who make it work are rewriting the rules in real time.

“Hands down the most difficult challenge in operating restaurants right now is trying to make a profit,” says longtime restaurateur John Nolan, owner of The Victorian Cafe and three Hideaway Tavern locations. “Profit margins in restaurants have always been very tight… if you are making 10% then you are running a solid business. Those days are no longer.”

That squeeze is coming from every direction. Food costs are up. Labor costs are up. Utilities, insurance, licensing fees. Even the invisible infrastructure of running a kitchen has gotten more expensive. Nolan points to new regulations that have increased the frequency and cost of required services like hood cleanings and grease trap maintenance. What used to be occasional upkeep is now a line item that runs into the thousands annually. “It’s the same pain that everyone feels at home but on a larger scale,” he says.

“It takes a lot of passion, heart and drive to be in the food business in Central Oregon right now,” says Cheri Helt, who owns Zydeco Kitchen & Cocktails and Stacks Deli with her husband, Steve. “You have to work really hard to make your margins and make your restaurants work.”

That work increasingly involves adaptation. Not just tweaking a menu or raising prices, but rethinking the entire model. When the Helts opened Stacks Dinner & Delicatessen in the Old Mill District, they did so with intention. “We really wanted to do something that fit the niche of a casual environment with upscale high quality food,” Helt says. “We are doing counter service so that we have less staff to be able to deliver high quality food… something you could come and get quickly but that doesn’t compromise quality.”

It is a small but telling shift, one that reflects a broader trend across Bend and nearby Redmond. Counter service. Streamlined menus. Smaller footprints. Restaurants designed not just for ambiance, but for efficiency. Because the math has changed. “Is everything an answer?” Helt says when asked what has shifted since opening Zydeco in 2004. “If so, then I’d say everything.”

Two decades ago, she says, restaurant workers could reasonably expect to build a life here. “When we started Zydeco, everyone that worked there was able to own their own homes.” Today, affordable housing is one of the biggest challenges facing restaurant staff, and by extension, the businesses that rely on them.

“It’s the challenge of rent and affordable housing for staff,” Helt says. “We always want to make sure that everyone that works for us… can afford all of their bills and that they’re taken care of.” That commitment often means offering benefits like health insurance and competitive wages, even as margins tighten. It is a balancing act that requires both discipline and belief.

Deschutes Brewery Assistant General Manager Melissa Talbott echoes that sentiment. “Daily, we are watching our labor and cost of goods, while not compromising the guest experience or food quality. It truly is a balancing act.”

Nolan puts it more bluntly. “Respect the margins,” he says, one of his five rules for running a successful restaurant. “Pick and choose your battles.” It is not just about survival. It is about identity. “Provide a product or experience that sets you apart from others,” Nolan says. “Never try to be everything.”

“I still love the restaurants. And I will keep rolling with the punches as long as I can.”
John nolan

That ethos helps explain why, despite the challenges, Central Oregon continues to punch above its weight as a food destination. Bend, in particular, has built a reputation as a bona fide foodie town, one that rivals cities many times its size. And just up the road, Redmond is in the midst of its own culinary moment, with a steady stream of new cafes, food cart lots and restaurants adding fresh energy to the scene.

There have been losses, too. Closures over the past year serve as a reminder that even well-loved spots are not immune to the pressures. It was just last May (2025) that the popular downtown eatery 900 Wall closed abruptly.

Roughly 17 percent of restaurants close within their first year, according to the U.S. Bureau of Labor Statistics. It is a tough business in any environment, and this is not an easy one. Nine out of 10 restaurants are small businesses. They are the places where owners are still writing the specials, still jumping on the line when someone calls out, still greeting regulars by name.

“I had a woman come in who had spent her 70th birthday at Zydeco,” Helt recalls. “Yesterday it was her 84th birthday and she was here with her family celebrating. To have someone choose to dine with us for their special occasions over a 14-year span is an honor and a blessing.” That kind of loyalty is not built on convenience alone. It is built on consistency. On care. On the feeling that a place matters.

Consistency has been the name of the game at Deschutes since it was founded in Bend in 1988, along with plenty of creativity. “Here at the Brewery, we believe there isn’t just one factor to maintaining a successful restaurant in today’s environment,” explains Talbott. “We expect our team to create relationships, engage, and have fun with our guests, guiding them through the dining experience. But we also need to be cognizant of our menu, keeping it creative and offering the highest quality ingredients at a price that is sustainable for those dining with us.”

For all the spreadsheets and stress, there is still something magnetic about the business. A pull that keeps people in it, even when the odds suggest otherwise. “I still love the restaurants,” Nolan says. “And I will keep rolling with the punches as long as I can.”

This article appears in Restaurant Guide 2026.