Steve’s Hot Dogs and The Fountain on Delmar will close their Delmar locations on Jan. 10, ending daily operations after months of struggling to rebound from last spring’s tornado and a slow neighborhood recovery.
The two restaurants, located side by side in the Delmar Maker District, opened just over a year ago but faced mounting challenges tied to rising costs, shifting customer habits and a prolonged drop in foot traffic. Owners said business was beginning to stabilize before the May 16 tornado displaced nearby residents and stalled momentum in the area.
Even after rebuilding efforts, the lack of population density and ongoing construction made it difficult to sustain brick-and-mortar operations. Leaders with parent company HuSTL Hospitality described the closures as a strategic pivot rather than a shutdown, emphasizing that the brands are not going away.
Steve’s Hot Dogs plans to launch a food truck in March, while HuSTL Hospitality will shift its focus toward food halls, stadiums, festivals and partnerships that offer more flexibility and lower overhead. Both companies say they remain committed to supporting Delmar’s long-term recovery and are working to place affected employees in other operations.
Customers are encouraged to visit the Delmar locations before they close Jan. 10 to support staff and celebrate the restaurants’ time in the neighborhood.