Restaurants in Milford, Wilmington, Kennett Square Close Doors

Seasonal challenges and high costs force some eateries to shut down or change operations

Feb. 1, 2026 at 3:55am

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Several restaurants in Delaware and Pennsylvania have recently closed or transitioned their business models, citing economic hardships and the challenges of operating during the winter months. The closures include a speakeasy-style cocktail lounge in Wilmington, a Grain restaurant in Kennett Square, and a Capriotti's sandwich shop in Milford.

Why it matters

The restaurant industry faces significant financial pressures, with high startup costs and fixed expenses like real estate, labor, and equipment. Seasonal factors like decreased customer traffic in the winter can further strain already-tight profit margins, leading some establishments to shut down or adapt their operations.

The details

The Torbert Street Social, a speakeasy-style cocktail lounge and beer garden in Wilmington's Midtown Brandywine neighborhood, has transitioned to an events-only venue after operating as a public establishment since August 2019. In Kennett Square, the Grain KSQ restaurant, which took over the former Half Moon Saloon & Restaurant in 2017, has closed, with the owners citing a need to consider the space's 'next chapter.' Meanwhile, the Capriotti's sandwich shop in Milford has closed permanently, with the franchise's Wilmington location citing a history of public health inspection violations as a factor.

  • The Torbert Street Social in Wilmington closed to the public on December 31, 2025.
  • Grain KSQ in Kennett Square closed in January 2026.
  • The Capriotti's location in Milford closed permanently in early January 2026.

The players

Torbert Street Social

A speakeasy-style cocktail lounge and beer garden in Wilmington's Midtown Brandywine neighborhood that has transitioned to an events-only venue.

Grain KSQ

A restaurant in Kennett Square, Pennsylvania that took over the former Half Moon Saloon & Restaurant in 2017 and has now closed.

Capriotti's

A sandwich franchise founded in Wilmington, Delaware in 1976 that has 156 locations nationwide, with the Milford, Delaware store closing permanently.

Lee Mikles and Jim O'Donoghue

The owners of the Grain Craft Bar+Kitchen in Newark, Delaware, who also operated the now-closed Grain KSQ restaurant in Kennett Square.

Grace Rivers

A spokeswoman for the Atlas Restaurant Group, which owns the Torbert Street Social site in Wilmington.

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What they’re saying

“We have seen a significant increase in event inquiries and bookings at Torbert Street Social throughout 2025. Given this success, we have made the decision to formally transition the space into a dedicated event venue.”

— Grace Rivers, Spokeswoman, Atlas Restaurant Group

“We were excited to be part of a downtown Kennett Square that felt alive, welcoming, and worth gathering in. Over time, it became clear this space deserves more than small adjustments to truly thrive. We've explored multiple paths forward, and while the future may take a different shape, closing now allows that next chapter to be considered with care.”

— Lee Mikles and Jim O'Donoghue, Owners, Grain KSQ

The takeaway

The recent closures of restaurants in Milford, Wilmington, and Kennett Square highlight the financial challenges facing the restaurant industry, particularly during the winter months when customer traffic tends to decline. High startup and operating costs, combined with seasonal factors, can strain profit margins and force some establishments to shut down or adapt their business models.