The Closure of an Iconic Lakefront Eatery in California
A beloved lakefront eatery in California has been forced to close its doors after years of financial struggles and shifting community dynamics. Jake’s On The Lake, located in Tahoe City, announced that it would be shutting down for good at the end of October, with a farewell celebration planned for October 25. This closure marks the end of an era for many locals who have cherished the restaurant for decades.
The decision to close was influenced by several factors, including rising operational costs and the impact of the COVID-19 pandemic. As the pandemic disrupted normal business operations, many residents in the area chose to move away in search of more affordable living options. This exodus of locals significantly affected businesses like Jake’s, which had long relied on seasonal tourism to sustain itself.
North Lake Tahoe experienced a notable decline in permanent residents between 2010 and 2017, as reported by SFGate. During this time, the area saw a significant increase in second homes and short-term rentals. From 2019 to 2021, 94% of homes sold in Placer County were either second homes or short-term rentals, according to data obtained by the outlet. This shift in housing patterns further contributed to the loss of regular customers for local businesses.
Jeff Hill, the managing partner of Jake’s On The Lake, explained that the restaurant primarily generates revenue during the summer months. “We lose money from November through May, and that’s the way it’s been for a long time,” he said. However, as lease terms approached their end, maintaining this cycle became increasingly difficult.
Now, the future of Jake’s On The Lake is uncertain. The restaurant, which has been operating since 1978, is set to be demolished as part of redevelopment plans for Tahoe City’s Boatworks Mall. These plans involve tearing down the mall and its businesses to make way for a luxury hotel. Although these plans are not yet approved, they have left many locals heartbroken over the potential loss of the iconic eatery.
Community members expressed their sadness over the closure, highlighting the emotional significance of the restaurant. One user wrote on Facebook: “Sad news, not just of Jake’s and Boatworks Mall closing and being demolished for a luxury hotel but for a way of life, including my own, that enriched and gave joy and family to generations.” Others shared similar sentiments, expressing how the restaurant was a vital part of their lives.
Jake’s On The Lake was known for its stunning views of the lake and its reputation as a family-friendly establishment. Locals often visited the restaurant for special occasions such as birthday parties, wedding events, or fundraising activities. The original owners, Sandy Saxten and Rob Thibaut, opened Jake’s as their second establishment while building their restaurant empire, TS Restaurants, which includes locations in Hawaii and California.
“The goal was to create a family place,” an employee said. “That’s what makes Jake’s special—it has been independently owned since Thibaut took over.”
As customer numbers dwindled, businesses like Jake’s became increasingly dependent on seasonal work. Hill noted that this cycle has only become more pronounced over time. While the restaurant is currently in negotiations for a potential reopening in May 2026, the outcome remains uncertain.
“Jake’s is heritage. It’s history. People got married here, met here, even raised families through this place,” Hill added. “The story of this place is long and beautiful. It would be hard to imagine Jake’s in any other location.”
The restaurant’s final event will feature live music and a heartfelt farewell to the long-standing icon. Locals who once dined at Jake’s shared cherished memories and highlighted favorite dishes such as the hula pie. “If it is Jake’s time to officially be over, then what an incredible run,” Hill said. “We’re so grateful for everyone who’s been a part of it—employees, patrons, families.”
This closure serves as a reminder of the challenges faced by small businesses in an evolving economic landscape. As communities change, so too do the establishments that define them. The legacy of Jake’s On The Lake will remain in the hearts of those who have enjoyed its charm and hospitality over the years.
