Shed in Healdsburg will shut its doors at the end of 2018, closing the book on a charmed five-year run for Sonoma County’s most ambitious combination restaurant, marketplace, event space and fermentation bar.
Co-owners and founders Doug Lipton and Cindy Daniel plan to close the brick-and-mortar location on Dec. 31 and turn it into an online-only entity.
It was a business decision for the owners. Though the restaurant at Shed may have been a draw for many folks who made the trek to Healdsburg, and was even the recipient of a three-star review in The Chronicle, the business’ profitability hinged on its retail sales: produce, grocery items, kitchenware, and garden tools, among other things.
As a business, Shed was rooted in being hyper-local while focusing on sustainability. Farmer and artisan producers in the area got 10 percent discounts on purchases. Produce was all grown within 10 miles of its doors. And the beer, wine and cider all came from makers in the area.
After the 2017 Wine Country wildfires tore through Sonoma County, Lipton and Daniel noticed retail sales in the store were waning. For a business that was essentially comprised of three entities under one roof, foot traffic mattered. And despite locals remaining a constant presence, it was the days between the weekends where crowds were noticeably beginning to thin.
All the while, online sales thrived, they said. In light of the retail shift, and though the brick and mortar will shutter, Shed will live online. “In the New Year, we will reimagine our dreams and ambitions around the concept of Shed, and explore what’s next for us,” Lipton said in a statement.
Equally as notable as Shed’s grand ambitions in Healdsburg were its design and architecture. The barn-like structure was opened in 2013 and the next year, the James Beard Foundation gave it a design award for both its look and its functionality — retail sprawled across the first floor while an events space was located on the second floor.
The Shed team will begin looking for potential buyers for the space in the coming months, with hopes of finding a new “owner who understands the community that’s gathered here how to carry forward the spirit of Shed.”
The staff at Shed was made aware of the pending closure on Monday.
Justin Phillips is a San Francisco Chronicle staff writer. Email: jphillips@sfchronicle.com Twitter: @JustMrPhillips