Update: It’s Not Over for Clover: Restaurant Nabs New Capital

Days after shutting down all 12 of its vegetarian restaurants and kiosks, Clover says it will reopen an as-yet-undecided number of locales, thanks to an infusion of capital an unnamed investor, The Boston Globe reports.

The apparent demise of the Cambridge, Mass.-based chain’s was detailed in this previous Shop! item:

Clover, a chain of 12 quick-serve restaurants and kiosks known for vegetarian dishes and locally sourced ingredients shut down late last month, The Boston Globe reports. The culprit: inflationary pressures that have caused ingredient prices to go up while also prompting many Clover customers to pare back on their spending — “a recipe for fiscal disaster,” as the Globe put it.

“We’re grappling with the impact of inflation,” CEO Julia Wrin Piper told the newspaper. “Our local farms are raising their prices. We’re experiencing the same pressures on every part of our supply chain that people are [experiencing] in their daily lives… We simply can’t keep up with inflationary pressures.”

The business was launched in 2008 as a food truck on the campus of MIT in Cambridge, Mass., by Ayr Muir, who had earned master’s degree in materials science there in 2001 before going on to study at Harvard Business School. His goal was to come up with vegetable-based recipes that meat lovers would like, to broaden the potential audience beyond vegetarians, with an eye toward sustainability. Over the following decade, Clover shifted from food trucks to brick-and-mortar shops, supported by a Cambridge commissary.

But Muir exited the company in 2023, shortly before Clover filed for Chapter 11 bankruptcy, following a poorly timed effort to open a new commissary in Hyde Park and a slowdown in foot traffic brought about by remote work trends during the COVID-19 pandemic.

For a while, it looked like the chain had a new lease on life after emerging successfully from an expedited bankruptcy the following year. But it wasn’t to be.

Though an issue for several years, inflation significantly ate away at revenue and drove up expenses earlier this year, Wrin Piper said, at roughly the time that the United States and Israel began the war with Iran, causing oil prices to shoot up. Most of Clover’s ingredients, she added, cost 30% to 50% more than two years ago.

“Clover is a very special place,” she told the Globe. “You’ll never find a more standup group of mission-driven, smart people… We worked elbow to elbow with each other. We really enjoyed bringing joy to Boston, to our customers.”

In the end, that wasn’t enough, Wrin Piper said, noting that Clover’s struggles illustrate the challenges of relying on local food sources without government contracts or other subsidies to help defray costs.