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Shuttered: Shoals, Kung Fu Saloon & Armadillo Ale Works

Recently we postured about all the new restaurants opening around Dallas despite persistent industry challenges from inflation to labor issues.
Image: Shoals Sound and Service has closed after five years in Deep Ellum.
Shoals Sound and Service has closed after five years in Deep Ellum. Taylor Adams
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Recently we wrote about all the new restaurants opening around Dallas despite persistent industry challenges from inflation to labor issues. Last week we reported that Legal Draft Beer Co. in Arlington closed it doors. This week we learned of several other spots.

Shoals Sound and Service in Deep Ellum announced on Instagram that Monday was their last day of business after five years. Not only was Shoals one of our favorite cocktail bars in Dallas, but a couple of years ago owner Omar Yeefoon flipped the menu to all vegan and it was some of the best in the city.

We spoke to Yeefoon in the summer of 2020 when he was ready to reopen after pandemic shutdowns as a vegan restaurant, during a time when the country was reeling after the murder of George Floyd. He had this comment:
“The coronavirus itself has exposed immense inequities. Systematic things that were wrong in this country,” he said. “It’s going to be the Napster for the restaurant industry — everything’s going to change.”
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On Sunday, customers lined up at Armadillo Ale Works for one last run.
Amy Meyer
In Denton, Armadillo Ale Works also served their last beer this weekend after 12 years of business. Observer contributor Amy Meyer says that as a homesick newcomer to the area, it was in the taproom at Armadillo Ale Works where she felt like a regular from day one. In their final hours, as word spread to their loyal customers, she went for one last visit.

"There was a huge line to order beers," Meyer says. "People were walking out with cases, sometimes even two cases of beers, sodas and seltzer. The patio and taproom were packed. It almost felt like a reunion. I really don't know much about Denton, but this space feels very community-based."

A message to customers on their Instagram page spelled out quite clearly how the hurdles of the pandemic kept coming and were too tough to clear one after another:

"In an effort to minimize Covid-19 transmission, from March 2020 to March 2021, alcohol-related businesses in the state of Texas were forced to shut down or operate at limited capacity. While containing the spread of the virus was critical, the state’s restrictions affected both our taproom sales and the sales of all of our wholesaler and retailer partners. Poor sales led to the accumulation of expenses and debt and, although government assistance helped keep us afloat, we were unable to fully recover. Due to this, we have been unable to maintain a level of revenue to offset our expenses and must vacate our building."

Kung Fu Saloon in Dallas also shuttered this weekend after 12 years of business. This trendy restaurant and nightclub teased on social media that they'd be back soon with a winky face. They have outposts in Fort Worth, Houston, San Antonio and Nashville that are all still open.
In its early years, Kung Fu Saloon was accused of assigning different dress code protocols for white and non-white patrons. The city and feds got involved and an investigation lead to the bar entering into a consent decree that forced them to place signs in all of their physical locations and on social media announcing that it doesn't discriminate based on ethnicity.