After nearly 14 years of serving its small community, a staple of Grand Meadow has closed.

Owners of Grumpy’s Restaurant & Lounge and South Side Saloon closed the diner Sunday, Jan. 1, and announced plans to restructure the building for commercial space. Plans for an Internet-only auction warehouse and business equipment re-utilization center are already underway, but owner Ross Manahan is reflecting on his restaurant.

“It was a labor of love that just didn’t work out for us,” said owner Ross Manahan. “It was a great place and had great food.”

Grumpy’s Restaurant and Lounge, which opened in 1998, was purchased by Manahan in 2008 and underwent expansions, which included a new bar, dance floor and gaming area. The business had been a hot spot for visitors from many surrounding towns, from Riceville, Iowa, to Rochester, Manahan told the Herald in April.

The move surprised many, including employees, as few knew Grumpy’s was closing until it happened.

“I thought we were doing well,” said Dallas Hanenberger, a cook at Grumpy’s for the last year and a half. Hanenberger discovered he was no longer working at Grumpy’s on Monday, the day after it closed.

Manahan cited economic downturns, increased food costs and difficulty finding dependable staff to operate the 20-plus-employee facility as reasons for closing.

In the past months, Hanenberger said he definitely noticed fewer employees and less reliable help, yet the close was still a surprise. Hanenberger said a crowd was at Grumpy’s on New Year’s Eve, along with a pool tournament. The next day, the business was closed.

Hanenberger was lucky to have another job on which he could fall.

“I feel really bad for everybody else,” Hanenberger said of some of the other employees. “I don’t know if anybody else has it like I have.”

A few key employees will remain on staff assisting the owners in preparing for their plan to sell equipment and restructure the facility.

Meanwhile, locals and out-of-towners will have to find a different place to go. Hanenberger remembers many who simply came in for soups and salads. They will have to go to another town. Grumpy’s will leave a void for others, as well.

“I’m sad to see it go,” said Doc Shipton from Spring Valley. “It was one of my favorite places to hang out.”

Shipton will no longer be able to hold his poker tournaments at Grumpy’s. While he’s not severely affected by the close, many will no longer be able to enjoy the large tournaments he hosted every other month. Shipton sees more of an affect on the community than himself.

“Any time a business like that closes in a small town, it’s going to affect the community,” Shipton said. “There’s no way around it.”

But there is a future.

The facility will be restructured into three to four separate commercial spaces. The initial and primary business, the auction warehouse, will be moving into the South Side Saloon space within weeks. The two to three potential north side spaces are being examined for the following options: a high volume embroidery, a laser engraving and screen printing business, an off-sale liquor store, and a real estate agency satellite office.

The owners said more information on the changes will be released in the coming weeks. Restaurant and bar equipment, fixtures and supplies will be sold in January via an Internet only auction, which will be advertised locally as well as in Midwest auction calendars.