John Miller
Mellow Mushroom's closure came as a disappointment to many, with some citing poor service, long wait times, and incorrect orders as reasons for its demise. The pizza chain faced competition and industry-wide staffing issues, which may have contributed to its struggle to maintain a customer base and keep up with the changing landscape of the restaurant industry. With locations closing across various states, from Colorado to Tennessee, it seems that Mellow Mushroom couldn't keep up with the times, despite its quirky atmosphere and unconventional pizza toppings.
| Characteristics | Values |
|---|---|
| Poor service | Forgetting orders, long wait times, poor management, unmotivated staff |
| Poor food quality | Pizza slices were different sizes, unconventional toppings |
| Staffing issues | High employee turnover, employees were unproductive |
| Ownership issues | Sold back to franchisor in 2018 |
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What You'll Learn
Poor service
Another issue that affected the service at Mellow Mushroom was staff management. One former employee shared their experience working at a Mellow Mushroom location, stating that the general manager was homeless and on drugs, while other employees were often smoking weed instead of working. This resulted in a lack of coordination and consistency in the service provided to customers.
The impact of the poor service was significant enough that some customers chose to stop patronizing the restaurant altogether. For example, one customer mentioned that they had to order two beers at once and close out their tab to avoid dealing with the disappointment of slow service and incorrect orders.
In addition to individual locations, Mellow Mushroom has also faced challenges on a larger scale. For instance, the company's sole location in Colorado, located on the 16th Street Mall in Denver, closed in 2025 after 15 years in business. This closure left the company without any restaurants in the state of Colorado.
While the specific reasons for the closure of this particular location are not mentioned, it is possible that poor service could have played a role, especially if the issues were consistent across multiple locations. However, it's important to note that other factors, such as franchisee decisions and industry-wide trends, may also have contributed to the closure of Mellow Mushroom restaurants.
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Poor management
In the case of Mellow Mushroom, there are several examples of poor management contributing to its decline. Firstly, there are numerous reports of poor service, with customers complaining of long waits, incorrect orders, and general disorganisation. While this may be attributed to inadequate training or staffing issues, effective management should be able to address these issues through proper training, supervision, and staffing rotas that ensure an appropriate number of staff are on duty at all times.
Secondly, there are reports of substance abuse among staff, including a general manager, which went unchecked by senior management. This not only impacts the ability of staff to perform their duties but also affects the reputation of the restaurant and may deter customers from returning.
In addition, some customers have reported a decline in food quality, with one customer stating that their pizza was "wet and gross". This suggests that there may have been a lack of consistency in food preparation, indicating a failure of management to maintain standards and ensure that all staff are adequately trained in food preparation and presentation.
Finally, effective management requires a clear vision and strategy for the business. In the case of Mellow Mushroom, there appears to have been a lack of coherent planning, with the company's vision for the brand not being accurately translated to individual franchises. This inconsistency can confuse customers and lead to a decline in customer loyalty, ultimately affecting the bottom line.
In conclusion, while there may be other factors at play, poor management can be a significant contributor to the closure of a restaurant. In the case of Mellow Mushroom, issues with service, staff conduct, food quality, and strategic planning all point to management failures that likely played a role in the closure of several of their locations.
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Substance abuse in the workplace
While there are several speculations about why Mellow Mushroom closed, one former employee cited substance abuse in the workplace as a reason for the closure. The employee stated that the general manager was homeless and used meth, and that other employees smoked weed during their shifts. This resulted in poor service, with customers complaining about incorrect orders and long wait times.
The impact of substance abuse extends beyond the individual, affecting the entire organization and industry. It can result in financial costs and a change in the office environment. Younger workers, particularly young men, are more likely to turn to substance abuse to cope with work pressures. However, research has found no association between work pressure and substance abuse among workers aged 60 and older. Additionally, certain professions, such as healthcare, protective services, and education, exhibit lower rates of substance use disorders.
Managers play a crucial role in addressing substance abuse in the workplace. While they are not responsible for diagnosing substance abuse disorders, they should be aware of the signs and know how and when to intervene. This includes consulting with HR partners and taking appropriate action to address immediate safety risks. Substance abuse may sometimes be recognized as a disability under the Americans with Disabilities Act (ADA), and employers may need to provide reasonable accommodations to support employees in maintaining their sobriety.
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Staffing issues
In a 2021 article, customers expressed disappointment at finding closed Mellow Mushroom restaurants, attributing the closures to industry-wide staffing issues. Dr. Siri Terjesen, from FAU's College of Business, commented on the complex reasons behind the staffing shortages, noting that some workers may have concerns about childcare, while others have moved on from the industry.
Indeed, the impact of the pandemic and enhanced unemployment benefits have also been factors in the staffing challenges faced by Mellow Mushroom and the restaurant industry as a whole. While pandemic-related aid has ended in some states, workers' decisions about returning to work are influenced by individual circumstances and wage expectations.
Mellow Mushroom's former presence in Colorado illustrates the challenges of staffing multiple locations effectively. Despite plans to expand to 15 locations, the chain ultimately operated a maximum of three restaurants in the state, with the last remaining outpost in Denver closing in 2025. Staffing issues were not explicitly mentioned in the reports of the Colorado closures, but it is reasonable to assume that they played a role, given the industry-wide challenges.
Additionally, Mellow Mushroom has faced criticism for its service quality, with customers reporting issues such as forgotten orders, incorrect orders, and long wait times. These issues may have resulted from inadequate staff training or a lack of consistent standards across the franchise. While it is unclear whether the service problems were due to staffing shortages or other management challenges, they undoubtedly contributed to a decline in customer satisfaction and loyalty.
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Sold to another company
Mellow Mushroom's Colorado locations were sold back to Home Grown Industries of Georgia, the pizza chain's franchisor, in 2018. The closure of the Mellow Mushroom location on the ground floor of the Tabor Center in Denver ended the company's presence in Colorado, as it was the last remaining outpost in the state.
The Denver location had been open for 15 years, serving stone-baked pies and other American fare in a 6,400-square-foot space. The closure of this location was not an isolated incident, as other Mellow Mushroom restaurants in Colorado had previously shut down, including those in Centennial and Lone Tree.
The original plan, according to co-owner Morris Purcel, was to expand Mellow Mushroom throughout Colorado, with a goal of opening 15 locations. However, the franchise only managed to establish three outposts in the state before they were sold back to the franchisor.
The sale of the Colorado locations back to Home Grown Industries of Georgia could be attributed to a variety of factors, including operational challenges, market dynamics, or shifts in strategic direction. The closure of the Denver location, in particular, may have resulted from a combination of factors, such as lease expirations, financial considerations, or changes in the area's demographics and foot traffic.
The impact of the closures extends beyond the loss of a beloved pizza chain for customers. It also affects the local community and economy, as it contributes to the challenges faced by locally-owned businesses in the area. The closure of Mellow Mushroom and other restaurants in the 16th Street Mall highlights the evolving landscape of the dining industry and the ongoing search for new tenants to revitalise the area.
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Frequently asked questions
Mellow Mushroom's Colorado location closed due to the sale of the store back to Home Grown Industries of Georgia, Mellow Mushroom's franchisor, in 2018.
Mellow Mushroom's Memphis location closed due to poor service, with customers reporting issues such as forgotten orders and long wait times. There were also reports of management and staff issues, including substance abuse and a lack of professionalism.
Mellow Mushroom's Guadalupe Street location closed after Urban Outfitters bought the leases of five neighboring stores, including Mellow Mushroom, to open two new restaurants and expand their selling space.
