After over 40 years, Penny Hill Deli, a beloved restaurant and bar located on Lindsey Street, will close its doors Friday due to a lack of profitability, according to its co-owner's Facebook post.
Gary Graham posted Wednesday afternoon in a Norman community group the restaurant is not as profitable as it once was.
“The reason is simple, the store has become unprofitable,” Graham wrote. “All the expenses, again All of the expenses, have become more than the store could bear. We’ve done all we can.”
After over 40 years, Penny Hill Deli, a beloved restaurant and bar located on Lindsey Street, closed its doors Friday due to a lack of profitability.
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Jeri Sieber, owner of Classic 50s Drive-In, another restaurant business on Lindsey, said she is devastated at the restaurant’s closure, as it was a staple in the Norman community for so long.
“They're one of my favorite Lindsey Street (restaurants) and I visit there often,” Sieber said. “It's really close to my chest (and it’s) literally between my drive-in and my house so me and my family eat there all the time. I'm so sad that they're closing, but I completely understand.”
Restaurants are increasing prices in reaction to the current economic environment, making business especially hard, which Seiber said can deter customers.
“Our numbers are down this year from last year and the year before,” Sieber said. “They're not just down a little, they're down significantly. I'm not sure if people are feeling the crunch of the economy or if it's January, (which is) always slow, … but this is exceptional.”
In a 2023 survey conducted by Restaurant365, 2022 data showed 74% of customers expected a rise in food costs. In September 2023, there was an average 2.9% increase. The survey also found 75% of respondents expected their labor costs to increase in 2023, and in July, 83% saw a rise.
The survey also found 45% of restaurant operators reported a surge in same-day sales between August 2022 and August 2023, which speaks to a positive trend in consumer spending and industry resilience.
Sieber said it's vital for the community to realize how important it is to support locally-owned restaurants and businesses.
“If you guys don't get out and patronize and support, Norman is literally just going to be a town full of fast food restaurants and chains,” Sieber said. “You're gonna lose all of your mom-and-pop restaurants, and there are no harder workers in this town than an independent restaurant owner. There's nobody else working any harder, I promise.”
In his Facebook post, Graham thanked the community and announced that bingo night, a beloved community tradition at Penny Hill Deli, will continue at the owner’s other restaurant, Land Run Grill on Tecumseh Road, beginning Tuesday.
“We are very sad about the closing of our business,” Graham wrote. “We appreciate all the kind words of support we’ve received from the Norman community. It means so much.”
This story was edited by Peggy Dodd, Ismael Lele and Anusha Fathepure. Grace Rhodes copy edited this story
