After serving Music City for over a century, a beloved restaurant once dubbed the “Oldest in Tennessee” is finally calling it a night.
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Varallo’s, a downtown Nashville institution, has closed its doors, local outlet WKRN reported on Feb. 26. The restaurant, which opened in 1907 on 4th Avenue North, was famous for its all-day breakfast and chili.
According to its website, the restaurant is the “Oldest Restaurant in Tennessee.” Its original owner, Frank Varallo Sr., immigrated to the United States in the late 1880s. He moved to Nashville to pursue a career as a violinist, but a hunting accident ended his musical aspirations.
Varallo began selling chili in a saloon, quickly gaining popularity and leading to the opening of Varallo’s. The restaurant stayed in the family until 2019, when it was sold to Bob Peabody, who continued serving the renowned chili recipe.
Varallo’s Closure Highlights a Changing Music City
Varallo’s closure adds to concerns about the rising cost of doing business in downtown Nashville. In a message to WKRN, Peabody cited economic challenges, stating the restaurant closed primarily because he couldn’t negotiate a feasible new lease. Peabody also cited high rent and property taxes as key factors.
The closure comes amid concerns from several downtown business owners over significantly higher property tax bills following Nashville’s Davidson County’s recent reappraisal. Many reported that their tax burdens have increased substantially as assessed property values have risen sharply compared to four years ago.
The debate escalated after the owner of Acme Feed & Seed disclosed that his building’s assessed value had risen from around $9.5 million to over $50 million, increasing his tax bill from approximately $130,000 to nearly $600,000.
Meanwhile, for generations of locals, Varallo’s closure represents more than the end of a restaurant. It highlights how rising costs are transforming downtown Nashville, which is increasingly populated by celebrity-owned bars.
“It’s a sad day,” customer Vance Broemel told Nashville’s WSMV last week. “I’m not saying change shouldn’t happen, but it’s tough to lose these places that have meant a lot to Nashville and can’t really be replaced.”
“I love the history, the legacy, that’s why I bought the place,” the restaurant’s owner, Bob Peabody, also told the outlet.
“I love you guys. It’s been fun getting to know everyone that comes in here,” Peabody added.