Economic times have been hard on Taco Time.

Following a gradual decline in popularity, sales and the building’s degrading condition, the downtown Pullman Taco Time, run by the Happy Day Corporation, shut down its operations Jan. 23.

Happy Day Corp. is responsible for other restaurants throughout the northwest such as A&W, Arby’s, Main Street Grill & Deli, Southway Pizzeria, Tomato Brothers and Zany’s Hollywood Grill.

“This store was a medium-volume store by Taco Time standards,” Happy Day Corp. President Bruce Finch said. “We needed to do a major remodel and felt we would realize better return on our investment leasing it or just selling the property.” Being the sole Taco Time in Pullman, as well as the building’s old age, contributed to Taco Time’s closure.

“It was our only restaurant in Pullman, which made it difficult to oversee,” Finch said. “The store was opened 38 years ago in 1971 – probably one of the oldest single-owner restaurants in town.” Restaurant closures are becoming more common, a result of the nation’s economic woes.

“There’s obviously been a decrease in most restaurant sales,” said Wayne Bergey, franchisee of the Colfax Taco Time. “Things were great going into the fall, but as soon as the weather came, that really hit us.” Bergey attributed Taco Time’s closure to Pullman’s harsh winter climate, the state of the economy and the noticeably smaller population in the summer months. He also said Taco Del Mar’s proximity and similarity in food possibly cut into Taco Time’s sales and popularity.

The closure of Taco Time is nonetheless a hit to Pullman’s economy.

“I know retailers have slowed,” said Tammy Lewis, executive director of the Pullman Chamber of Commerce. “I think people watch national news and they hold back and don’t go out to eat as much and that has hit us. We’re trying to encourage folks to save money, but at the same time we need to circulate money. When we hold back in spending money, that’s when businesses experience problems.” Lewis stressed the importance of supporting businesses by spending locally.

She said Pullman receives 22 percent of its budget from sales tax from businesses such as Taco Time, and if businesses close, it results in less funding for local services.

Though Pullman Taco Time’s success crumbled, Finch said remaining Happy Day Corp. restaurants are thriving.

“Taco Time in Lewiston and Clarkston are still No. 1 and 2 in the Taco Time chain of about 250 stores,” he said. “Arby’s are always strong, and the full-service independents Tomato Brothers, Zany’s, Main Street Grill and Southway Pizzeria were all up last year and were up this January in spite of the rumored down economy. Happy Day is still having positive sales growth.”