An unusually visible collection of Philadelphia-area restaurant institutions is reaching a turning point at the same time — with some closing for good and others seeking buyers as a generation of longtime owners reaches retirement age.
At Kelly’s Seafood, the end is definite. The Northeast Philadelphia restaurant will close this month as its owners retire, ending a run spanning three generations of the Kelly family. So will Steve Stein’s Famous Deli, whose history in the Northeast also reaches back nearly 70 years.
Elsewhere, the outcomes are less certain.
The Pub, the sprawling Pennsauken steakhouse known for its open hearth, medieval decor, and thousand-plus seats, is on the market. The restaurant, which dates to 1951, is not closing: It is on its customary summer break and is scheduled to reopen Sept. 18.
The owners of Cherry Street Tavern, the Logan Square bar that has operated for more than a century, are looking for a buyer after 50 years of stewardship by the Loughery family. The buildings that housed Mamma Maria’s, the East Passyunk Italian restaurant that opened in 1992, went up for sale this month. Aldar Bistro in Bala Cynwyd has been sold after 34 years and will give way to an Italian restaurant called Bruzi.
McGlinchey’s, the Center City dive that closed last year after nearly 90 years, is back on the market after a prospective buyer walked away from a deal for the building.
And the nearly 40-year-old Jake’s & Cooper’s Wine Bar in Manayunk is being marketed for sale as owner Bruce Cooper looks toward retirement.
Restaurants have always turned over, and the recent activity does not appear to reflect a restaurant market in retreat. The Inquirer counted 86 Philadelphia-area restaurant closings in 2025, while more than 100 new restaurants and bars were on the drawing board for 2026. What distinguishes many of the businesses now closing or being sold is their longevity: They survived for decades, weathering the pandemic and recent increases in food and labor costs, before their owners reached retirement.
‘The gray wave’
People in the restaurant, liquor, and real estate businesses say the turnover is part of a broader generational transition among small businesses as longtime owners reach retirement without children interested in taking over.
Jim Creed, handling Jake’s listing, calls it the “gray wave.”
“You’ve got operators who have been in business 40 or 50 years, and they don’t have heirs who want to take over the business,” said Creed, a senior vice president with CBRE.
His father, also Jim Creed, knows the issue from the other side. He opened Creed’s Seafood & Steaks in King of Prussia in 1982 and, at 78, has no immediate plans to sell. “I go to the restaurant every night,” he said. “It’s actually fun.” But when he does decide to close, he said, his children don’t want to take over.
For the counterexample, consider McGillin’s Olde Ale House in Center City. Open since 1860, it has survived through generations of owners; the Spaniak family has run it since 1958, with Chris Mullins Jr. now the third generation involved. There are no plans to sell. “It’s part of my DNA, part of our customers’ DNA, part of our staff’s DNA,” Mullins told The Inquirer this year.
Ed Taraskus has watched generations of restaurant and bar owners come and go over 50 years of practicing liquor licensing law. He could not say whether the current number of sales and closings constitutes a statistical trend, but said the succession problem is familiar.
“The parents retire and the children don’t want to get into the business — because it’s a hard business,” he said.
Taraskus said the hours can be punishing for small family operators. His clients also complain about finding employees willing to work nights and weekends. Drinking habits have changed, he said, and some businesses are still feeling the effects of the pandemic.
Taraskus knows the succession question personally. His South Philadelphia family owned a small restaurant and tavern, but his father discouraged him from entering the business. When his parents retired in the 1960s, they sold.
Real estate on the line
Retirement can present a second question for operators who own their buildings: What, exactly, are they selling?
A restaurant may have value as a going business, but decades of appreciation can make the underlying real estate a substantial part of an owner’s nest egg. Sometimes the economics favor a different restaurant — or an entirely different use.
Douglas Green, a principal at commercial real estate brokerage MSC, said the value of restaurant real estate is closely tied to the sales a location can support and, consequently, the rent an operator can afford.
“The more volume they do, the more rent they can pay,” Green said.
That means a location can be worth more to another restaurateur if the existing operator is underperforming. And in some cases, Green said, a restaurant may no longer be the property’s most valuable use at all.
“At some point, perhaps the building becomes obsolete,” Green said. “Perhaps the highest and best use of the real estate is no longer a restaurant.”
Those possibilities are playing out among the region’s longtime establishments.
At the Pub, the Gelman family is seeking a buyer for the restaurant and its roughly 6.3 acres on Kaighns Avenue near the former Airport Circle. The family has operated it since Marc Gelman bought it in 2000.
“I don’t think there’s one thing in general why we’re selling, but it’s time for a new steward — if you will — of the business, or the property,” Marc’s son David Gelman said.
At Cherry Street Tavern, at 22nd and Arch Streets, the Loughery family hopes to find a buyer who understands what generations of regulars value about the place.
McGlinchey’s illustrates the other possibility. Its nearly 5,000-square-foot property at 259 S. 15th St. is listed for $2.45 million, including the liquor license, bars, and McGlinchey’s name, as either a turnkey bar and restaurant or a redevelopment opportunity.
Decisions for buyers
Creed said longevity itself can tell a prospective buyer something about a restaurant property.
“Anytime you have operating longevity, that speaks to the real estate,” he said. “When you have a concept that has been in operation for 40 years, clearly the real estate has something to do with that, too.”
The retirement of one operator does not necessarily mean the end of restaurant use.
Mixto closed July 12 after nearly 24 years at 1141 Pine St. Within weeks, restaurateur Lori Penrose bought the property and announced plans to revive her former South Philadelphia sports bar, Toll Man Joe’s, there.
Emei owner Dan Tsao has pursued that strategy on a larger scale. Over roughly a year, he acquired or leased four landmark restaurant properties: the former John Henry’s Pub in Ardmore, Marra’s on East Passyunk Avenue, the former Irish Pub in Rittenhouse, and the Old Original Bookbinder’s/Olde Bar property in Old City. All four are intended to remain in hospitality use.
“There are pros and cons to both,” Tsao said of taking over an existing restaurant rather than starting with a new space. “But with an existing restaurant space, especially a legacy restaurant, it already has a place in the neighborhood, and a place in the memories and hearts of generations of customers.”
Such properties may also have much of the expensive infrastructure required to operate a restaurant.
But for Tsao, the attraction isn’t purely economic.
“I also like the idea of preserving some of that history,” he said, “while giving the space a new chapter.”