Panama Bar and Cafe Closes After 40 Years in Chico

CHICO, Calif. – The cherished Panama Bar and Cafe, a longstanding part of downtown Chico, has announced its closure after four decades of service. A notice placed on its front door revealed that the beloved establishment will close its doors for the final time on February 21. This marks the end of an era for both locals and visitors who have enjoyed the restaurant’s vibrant atmosphere and menu.

Impact on Downtown Chico Businesses

The announcement comes at a time when several other businesses in downtown Chico, including Tomfoolery, Collier Hardware, and Smoking Mo’s, have also ceased operations in recent years. The owner and general manager of Panama Bar and Cafe chose not to comment on the closure when contacted by local news outlet Action News Now.

Rising Costs and Challenges

Mayor Kasey Reynolds, who also owns Shubert’s Ice Cream & Candy, highlighted the escalating costs as a significant hurdle for small businesses in the area. In his remarks, Reynolds pointed out that:

“The cost of goods is through the roof. Labor is absolutely outrageous. PG&E is skyrocketing, and many businesses are facing doubled insurance costs. Some people are cutting checks for four to five thousand dollars a month just for PG&E bills.”

Many local business owners echo similar sentiments, with Anika Rodriguez, owner of Anika Burke, stating that the shift towards online shopping has adversely affected foot traffic in the downtown area.

Encouraging Community Engagement

Rodriguez encouraged locals to remain active in downtown Chico, saying:

“Even if you don’t have money to spend, just walking in the streets and being out and about makes a difference.”

New Ventures in Chico

Despite these setbacks, not all news is bleak for Chico. Action News Now recently covered Chico Start, an initiative dedicated to promoting emerging and expanding businesses in the city. Some noteworthy companies highlighted include:

• Safe Path: A company focusing on ADA-compliant ramps and pathways that is currently expanding in North Chico.
• Ponderosa AI: This startup, centered on wildfire and cargo technology, has gained recognition by winning various competitions and deploying its first prototypes in San Bernardino.

Chico Start Executive Director Eva Shepherd Nicoll emphasized the rise of about seven or eight new artificial intelligence companies launching in the area.

Need for Local Incentives

Shepherd Nicoll advocated for incentive programs tailored to attract new businesses downtown. She referenced Plumas County and Elk Grove as examples of regions that have implemented positive move-in incentives to stimulate local economies.

Changing Consumer Habits

Mayor Reynolds also reflected on how evolving shopping and dining habits, coupled with changing drinking cultures, are affecting downtown areas nationwide. He remarked that while online shopping brings convenience, it significantly impacts local businesses, leading to closures like that of Panama Bar and Cafe.

Originally established in 1986, Panama Bar and Cafe has played a vital role in Chico’s community for decades. As the restaurant bids farewell, it serves as a sobering reminder of the challenges facing small businesses in the evolving retail landscape.

For more information on how to support local businesses or engage with the thriving community in Chico, visit Chico Chamber of Commerce or explore initiatives such as Chico Start.