Iconic Budapest restaurant closing as downtown challenges mount: Owners

A landmark downtown London restaurant is closing after nearly seven decades in business, citing problems plaguing the core for the decision to shutter.

Budapest restaurant at 338 Dundas St., just east of Waterloo Street, is closing Friday, the business announced on its Facebook page late Thursday.

Owners of the iconic eatery highlighted a changing landscape downtown, from homelessness and empty storefronts to a lack of parking, as some of the factors in the decision to close.

Veteran Budapest staffers Eduard Nagy and Anita Tasonyi took over the Hungarian restaurant in 2018 after the death of its founder and longtime operator, Marika Hayek, who built the business into a downtown institution.

“When we took over . . . our intention was to keep the doors open and keep playing the game no matter what,” the owners wrote on Facebook.

“But COVID changed the game, particularly in downtown London, from homelessness to empty offices, insufficient parking, downtown safety . . . The game has changed so much so we’ve decided that it’s in the best interest of our team and family to close this chapter in our lives.”

Tasonyi declined an interview request Thursday.

The publisher of Eatdrink magazine says times are tough in the restaurant business following the COVID-19 pandemic that caused food and labour costs to spike and led many people to fall out of the habit of eating out.

“But in the core, it’s been particularly challenging,” Chris McDonell said of running a restaurant, adding the shift to remote work has taken a toll on downtown eateries. “The lunch business used to be pretty substantial.”

McDonell, whose publication covers the food and drink scene in Southwestern Ontario, praised Budapest’s owners for working hard to keep the “legacy” restaurant afloat during difficult times.

“These people have a creative courage,” McDonell said, adding he hopes to see a new restaurant open in the space that features a large outdoor patio.

“That’s a pretty big spot. Somebody’s going to have an idea,” he said.

The closing of Budapest marks the end of one of London’s longest restaurant runs.

The downtown eatery served up goulash, schnitzel, chicken paprikash, perogies and other traditional eastern European dishes. Inside the 100-seat restaurant was a sea of red velvet, embroidery, lace and layered textures.

And then, there was Hayek, the well-known face of the Dundas restaurant for more than six decades.

She grew up in the Hungarian capital that inspired the name of her restaurant and came to Canada as a refugee with her husband in 1956. After a stint in Montreal, the couple landed in London, where Hayek, then 25, worked at a deli before opening Budapest.

Hayek brought a passion for people and an unrelenting work ethic, often working seven days a week and on holidays, to the business that she said became her life.

“I don’t have time for men. I choose my restaurant,” the 84-year-old told the Free Press in a 2016 interview when asked about her love life.

Notable customers to the restaurant during the years included then-prime minister Pierre Trudeau, Hollywood star Barbra Streisand and Canadian hockey legend Wayne Gretzky.

News of Budapest’s closing came as a shock to many customers, some of whom took to social media to share memories about anniversaries, birthdays, graduations and other celebrations spent at the restaurant.

“As a strictly family run business, we’re moving forward with tremendous love and appreciation for the memories, stories, and growth we’ve experienced together,” the owners wrote.