After two decades, Mesa Pizza closed its doors last weekend, marking the latest small business to shut down in Dinkytown. 

Mesa Pizza previously closed its Stadium Village location in 2017, but continued to operate in Dinkytown. 

Mesa Pizza owner Dave Hathaway said in a statement to the Minnesota Daily that the decision came after a combination of rising rent, increased food costs and burnout.

“The building sold and the new landlord raised the rent by 39% in August 2024,” Hathaway said. “We tried making it work for 14 months and just can’t with that high rent.”

Hathaway said in the statement that the restaurant’s operating costs increased after the pandemic.

“The things Mesa Pizza buys — food, beverages, paper products, labor, utilities, insurance –– have all drastically increased in price post COVID,” Hathaway said.

He added that competition in Dinkytown has also intensified in recent years, with new restaurants and chains such as McDonald’s and Chipotle moving in.

“It’s harder to stand out when everyone’s fighting for the same customers,” Hathaway said.

After more than 20 years of running late-night pizza shops, Hathaway said exhaustion was another major factor.

“We’ve all gotten older,” Hathaway said. “The restaurant grind, working weekends until 3 a.m., managing front-line employees just gets harder as we age.”

Tony Nicklow, owner of Tony’s Diner right next to Mesa, said the closure reflects the mounting financial pressure on local restaurants.

“Rent’s definitely an issue here,” Nicklow said. “We cater to college kids who don’t have deep pockets, so we try to keep our pricing competitive, but you’ve also got to keep up with the rent. It’s a hard thing to balance.”

Nicklow said his diner, a Dinkytown staple for 24 years, faces similar challenges. He and Mesa’s owner, Dave, opened their restaurants around the same time in the early 2000s.

“He was here about a year or two after me,” Nicklow said. “It’s definitely part of student life, or it was. It’s sad to see these places go.”

Mesa Pizza had built a loyal customer base over the years, known for its creative slices and late-night hours. Its departure adds to a growing list of independent Dinkytown businesses that have closed or relocated in recent years.

Nicklow said he worries about what the trend means for the neighborhood’s character.

“It’s unfortunate that the little guys are getting squeezed out,” Nicklow said. “What makes a college campus community special is having these cool, small business owners that live and die here.”

Nicklow added that while city officials cannot control rent prices, more financial support for small business owners could help.

“It would be nice to have small business loans, especially since we don’t have the deep pockets that corporate franchises have,” Nicklow said. “Those places can afford the rent. We can’t.”

For University student Olivia Sun, the closure came as a surprise.

“I liked their pizza a lot,” Sun said. “It was made fresh in the oven and had a lot of topping and sauce options. I was surprised they shut down.”

Sun said Mesa’s prices were reasonable compared to other pizza places near campus.

“They were pretty affordable and close to campus,” Sun said. “Other pizza spots might fill the gap, like Punch Pizza, but I’m still sad to see them go.”

Nicklow said he hopes the owners take a short break and consider reopening elsewhere.

“They had a great product and big loyalty with their customers,” Nicklow said. “They were a great addition to Dinkytown.”

Hathaway said the community has responded with a mix of disappointment and understanding. Still, he said he has not ruled out a possible comeback.

“Maybe, if the right opportunity arises,” Hathaway said.