TENNESSEE STATE – The Volunteer State’s hospitality landscape is witnessing a historic "changing of the guard" this March. While Tennessee continues to break tourism records and unveil massive new projects like Dolly Parton’s upcoming hotel, the local scene is mourning the loss of the state's oldest restaurant and several multi-decade neighborhood anchors. Between a major regulatory crackdown on hemp-derived beverages and a new mandatory safety training for hospitality workers, here is the state of the Tennessee tavern scene this month.
The Major Closures: March 2026
The first week of March has seen the shuttering of legendary institutions that defined "Old Nashville" and its surrounding suburbs.
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Varallo’s (Downtown Nashville): In a move that has shocked the state, the oldest restaurant in Tennessee officially closed its doors on March 3, 2026. Established in 1907, Varallo's served downtown Nashville for 119 years, becoming a landmark for its signature chili and "all-day breakfast." The closure of this 4th Avenue North icon marks a profound loss for the city's culinary history.
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Ground Restaurant (Franklin): A staple of the Cool Springs social scene for over a decade, Ground Restaurant at 330 Mayfield Drive officially closed on March 2, 2026. Known for its burgers and neighborhood tavern vibe, the owner cited the conclusion of their ten-year run as the reason for the exit.
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Margot Café & Bar (East Nashville) – The Farewell Tour: While the final service isn't until June 5, 2026, March marks the high point of the "Farewell Tour" for this East Nashville pioneer. Owner Margot McCormack announced the closure of the 25-year-old institution earlier this year, citing the immense challenges of the post-2020 landscape. Fans are flocking to the Five Points landmark this month to pay their final respects.
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Hooters (Nashville, Memphis, Murfreesboro): Following the national bankruptcy and transition to a pure franchise model, three major Tennessee outposts—Nashville (Harding Place), Memphis (Peabody Place), and Murfreesboro—have officially finalized their wind-down operations as of early 2026.
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Papa John’s & Pizza Hut (Statewide): Both national chains are actively "optimizing" their Tennessee footprints this month. Papa John’s is in the process of closing nearly 200 underperforming locations nationwide this year, while Pizza Hut continues to retire its "Red Roof" sit-down taverns in favor of delivery-only "Delco" units.
Trends Driving the "Volunteer" Shift
Tennessee tavern owners are navigating a significant legislative and safety "Reset" this spring:
- The Hemp Products Crackdown (HB 1376): As of January 1, 2026, the Tennessee Alcoholic Beverage Commission (TABC) has officially taken over the regulation of hemp-derived cannabinoids. This new law effectively bans the sale of high-THCA flower and vapes, raises the purchase age to 21, and imposes strict new licensing and testing requirements. Bars that previously relied on "hemp-infused" sales are seeing a significant shift in revenue this March as they move toward traditional spirit programs.
- Mandatory Safety Training: 2026 marks the first year that all Tennessee bartenders and hospitality workers are required to undergo specialized training to recognize signs of sexual assault and human trafficking. This mandate aims to turn social hubs into front-line safety zones, though small taverns have reported administrative "growing pains" in getting their entire staff certified this month.
- Tougher DUI Laws: New regulations taking effect this year have made refusing a breath or saliva test an automatic license violation. With saliva tests now officially admissible in court, tavern owners are reporting a surge in demand for ride-share services and "mocktail" options as patrons adapt to the stricter enforcement environment.
Signs of Vitality: The 2026 "Music City" Momentum
Despite the loss of century-old legends, Tennessee's hospitality future remains highly ambitious:
- Tennessee Wings of Liberty Museum (Clarksville): Opening March 29, 2026, this massive new museum will serve as a major tourism anchor for the region, expected to drive significant "weekend-trip" revenue into Clarksville's emerging tavern scene.
- Dolly’s Tennessean Travel Stop: Anticipation is peaking this March for Dolly Parton's new branded travel stops and the upcoming Songteller Hotel (opening June 2026). These projects are redefining "Southern Hospitality" and drawing massive corporate investment into the state's beverage and lodging sectors.
- The "Adaptive Reuse" Boom: In Nashville, the trend for 2026 is adaptive reuse. Developers are increasingly bypassing high new-construction costs by transforming historic or underutilized buildings into modern social hubs like The Arcade, which is welcoming new high-end concepts like Bar Roze this spring.