Lessons Learned As I Closed Our Doors
It's not easy to put into words the journey of five years; the laughter, the late nights, and the vibrant community that surrounded House of Xelas. After an unexpected turn of events, we had to close the doors to our beloved bar this past August.
Boyle Heights was my family's first home in the US, and it held the roots of my identity as a first-gen Chicana. I had always dreamt of owning a space in this community, as a tribute and a thank you to the place that shaped me. This community was the birthplace of the Chicano/Chicana education movement in the '60s – as a former school teacher turned entrepreneur, and as a first-gen woman of color, the thought of owning a business here all these years later felt like a beautiful tribute to the activists who came before me.
When an opportunity presented itself to open a bar in Mariachi Plaza, I knew we had to go for it. My husband and I signed a lease, and began planning for a space that felt like it was for the community, BY the community: because it was. We honored the urban feel of Los Angeles with gorgeous murals, and married the old world with the new by placing rustic furniture from Mexico alongside vibrant neon lighting.
The space already had a mural, which are incredibly special to Chicano communities. We knew we wanted to keep it and expand on that energy, so we invited the same artist, Fabian Debora, to do the interior walls of Xelas and continue his art.
The love for Boyle Heights was evident in every detail. We intentionally created the bar as a gathering place for both today’s Boyle Heights community, and for the spirit of the Chicanos who fought to make space for us all those years ago.
Then everything changed
After five years of owning House of Xelas, and surviving a global pandemic in one of the industries hardest-hit by shutdowns, our lease renewal came due, and negotiations got complicated. We ultimately had to make the decision to close our doors.
The shock and heartbreak were palpable. As a business owner, Xelas was my baby. It felt like I was letting down the community that had been our backbone. I grappled with the fact that, despite all the hard work and passion in the world, true control over my business ultimately rested in someone else's hands.
Informing our staff and loyal customers about the closure was a painful process. We started with our team, and were thankfully able to place many of our dedicated staff members at one of our other restaurants. When it came time to notify our community, an Instagram post became the medium to convey the news. The outpouring of support from the community was bittersweet, but heartwarming. We had goodbye celebrations, shared memories and cocktails, and sent House of Xelas off with the honor it deserved.
What we learned
As we closed the doors one last time, some lessons became clear. First: business requires a level head; and your emotions have to take a back seat. Don’t allow yourself to be so passionate about starting your venture that you overlook terms that should be seriously evaluated and considered.
Next: Legal counsel is non-negotiable. Always have an attorney you trust review your contracts, no matter how small or straightforward. If a business relationship feels off from the start, it probably is. Trust your intuition and your support network if they say something feels off. Take the time to conduct reference checks on all your relationships, including contractors, landlords, and legal counsel.
Closing a restaurant involves strategic planning and emotional resilience. Taking inventory, ensuring a smooth transition for the team, and closing accounts with the help of a CPA were all challenging, but crucial steps for us.
The most significant lesson we learned overall: External factors don't define a failure. Owning a restaurant at all, especially in a post-pandemic world, is an uphill battle. You’re faced with razor-thin margins, staffing challenges, and unexpected twists at every stage. After this experience, I can acknowledge that some things are simply beyond my control, which is one step towards embracing the unknown, and trusting myself and my team to face whatever the universe has in store for us.
What’s next
As I embark on the journey ahead, our community remains my north star. Thanks to the love from Boyle Heights, we’ve been getting calls from developers offering new opportunities, and we’re excited about what’s ahead. We’re toying with ideas for a return to Boyle Heights, I’m coaching startups and small businesses, and we’re even dreaming up ideas of boutique hotels with integrated coffee shops/bars, building on the models we’ve already been successful with across our other ventures.
House of Xelas may have closed its doors, but its spirit, values, and ethics live on. As this chapter closes, another will open in its beautiful place. To stay tuned on where we’re headed, follow me on Instagram, or subscribe to my newsletter, The Ambitious Amiga, for updates on the next adventure. The future is bright, and I'm feeling ready to create something new.