The saga for long-struggling Pie Hole Pizza Joint has taken another hit.
The Lakeview location (3477 N. Broadway) will close June 29, ending a 10-year run in the neighborhood and almost four years in the current location. It former had been on Roscoe Street, steps away from Halsted at one of the busiest intersections in all of Boystown.
The closing was all financial-based, said owner Doug Brandt, who opened a second location in Andersonville on June 1, 2013—and started battling issues at the second location on June 2, 2013.
"When we opened the second location, a lot of things pointed to us going ahead and opening; there were a lot of good signs. Ultimately, it was more difficult than I thought," he said. "I bought a bunch of equipment that turned out to be [defective]."
So, he was forced to put extra money into the business, which he wasn't planning for. Case in point, the used ovens he purchased for $10,000. Less than two months later, he had to put another $8,000 into the ovens' repair, which basically was the equivalent of two months' worth of rent.
The cold, snowy winter also dramatically impacted business at both stores, he said.
"Even with a good summer it was not going to get any better [at the Lakeview location]," said Brandt, who admitted he is behind on paying bills, such as rent and utilities, at the Lakeview location.
When asked how far in debt he is, Brandt replied, "No comment … plenty."
"The last two years have just been really hard," Brandt said.
Another major blow came via the annual Chicago Pride Parade, which changed its route two years ago. The re-routing cut his business on that one day, which was the equivalent of two or three months' worth of rent.
"We kind of used the Pride Parade [income] to help make up for any debts from the previous winter, and then we'd look forward to [North Halsted] Market Days to store up some money for the upcoming winter," he said. "With the [new route], it still was a good day, but certainly nothing like what we had come to expect."
Brandt, 42, who now lives in Edgewater, purchased Pie Hole in 2007. He said that first year was "phenomenal" financially. But when the economy sank in 2008, his business was hit hard, "and it's been a struggle ever since."
Food costs have gone up "considerably" since 2007, Brandt said.
He said the Andersonville location, dubbed PH2, and initially financed in part by a then-unprecedented online crowd-funding loan facilitated by LendSquare.com, "is hanging in there," but very reliant on a successful summer financially. "If we don't have a good summer, everything's up in the air," about the future of the Andersonville location.
There are 10 employees at the Andersonville location, with three full-time, plus Brandt.
"I've learned more [over] the last six years than ever—in confidence-building, in business, in relationships, in politics, in everything. I wouldn't trade [these past six years] for anything," he said.
Brandt said he has not ruled out a future return to Boystown, or maybe opening other city locations, perhaps in Rogers Park, Wicker Park, Hyde Park, or other "progressive" neighborhoods.
"I really haven't had time yet to let it all sink in yet, but I'm not sad; I don't regret anything, and I'm not ashamed of anything. I'm also not hurt or upset," Brandt said. "At the same time, I also haven't had the time to reflect on the positive emotions, the positive impact, the successes we've had.
"Overall, it's a positive thing; it's a turning point; it's an opportunity to make things better."
Employees at the Lakeview location were offered to transfer to the Andersonville location, Brandt said. And after the Lakeview location closes, equipment and supplies will be consolidated.
Pie Hole Pizza Joint in Andersonville will be closed June 30 through July 2 to consolidate and install equipment.
