Varallo’s, the oldest restaurant in Nashville, closes

As Nashville builds, rents rise. Businesses get pushed out. The latest victim of the high cost of downtown is Varallo’s, Nashville’s oldest restaurant.

After 119 years in business, a simple white sheet of paper with “Closed. Sorry” handwritten in black Sharpie marked the closing of Varallo’s, Tennessee’s oldest restaurant.  “It was a place where everyone could come together, have a good breakfast or some chili.” owner Bob Peabody said in a call where he confirmed the restaurant has been closed permanently. Varallo’s was family-run and operated for over a century. They were known for chili “three ways,” served with beans and spaghetti served on a tamale.

Varallo’s Restaurant on 4th St. closes after 119 years in business

Rising rent at the Arcade

Varallo’s kept prices low, but ultimately the price of downtown was too high. The restaurant is part of the Arcade and leased its space. In 2021, New York based real estate firm, Linfield Capital purchased the Arcade. They remodeled and revitalized the ailing area while making an effort not to push out classic businesses like Percy’s Shoe Shine Service and Seema’s.

Peabody said that the current owners made an effort not to raise the rent too high, signing year-to-year extensions, but he said that stopped this year. “The new owners were not willing to even discuss a new lease with us.”

Peabody looked for buyers but said that he was told that if someone else bought it and ran it as Varallo’s, rent would just about triple. His only option was to close it.

Possible hope

One avenue for Varallo’s to continue is to be sold in grocery stores. A person or company could buy the licensing rights to Varallo’s recipe for canned chili and sell it on supermarket shelves. “If there was someone interested in picking up the rights to at least continue making the chili, I’d love to talk to them” he said.