Restaurant News & Reviews

Shangri-La owner pivots on business sale. What’s next for the popular restaurant?

Shangri-La bartender Ray Carrasco shakes up a happy hour cocktail on Wednesday, Jan. 7. The restaurant pivoted its service model in order to keep prices approachable for regular customers.
Shangri-La bartender Ray Carrasco shakes up a happy hour cocktail on Wednesday, Jan. 7. The restaurant pivoted its service model in order to keep prices approachable for regular customers. stimberlake@sacbee.com

Last month, Sommer Peterson, the owner of Fair Oaks’ popular restaurant Shangri-La posted on social media that she was looking for a new owner for the business — with the condition that the new owners maintain certain community-focused concerns.

Customers and community members flooded the business with messages of support and pleas to stay in business. People shared stories about what the restaurant meant to them. Married couples talked about having their first dates at Shangri-La.

“One day, someone left a child’s drawing on my desk that said, ‘please don’t go.’ And I just sobbed,” she said. She knew she had to do what it took to keep Shangri-La alive.

In a social media post Tuesday, the business announced that instead of selling it would be pivoting, making key changes to operations to make it more approachable as an everyday destination.

Starting Tuesday, Jan. 7, Shangri-La will open every day at 4 p.m., with a daily happy hour 4-5 p.m, offering 10% off all food and $2 off all drinks.

Shangri-La’s famous boozy slushies ($12) are going sober so everyone can enjoy them. Customers can add a “resolution killer” by choosing a shot of any liquor for an additional charge.

Overall, the restaurant is shifting to a more casual service model, with fewer plated dishes and more sharable, group-friendly food. Customers order food at the host station and are given a buzzer for pickup when the food is ready. Drinks can be ordered at the bar.

New menu items include Moroccan fried chicken on a stick ($15) served with a mint yogurt sauce, crispy falafel balls ($13) with beet hummus and a vegan banh mi ($17).

Sundays will have rotating themes, starting with live jazz from local musician Juan Carlos.

Fair Oaks destination restaurant Shangri-La’s owner Sommer Peterson is pivoting the business in an attempt to keep it open. The restaurant is shifting to a more casual service model, with fewer plated dishes and more sharable, group-friendly food.
Fair Oaks destination restaurant Shangri-La’s owner Sommer Peterson is pivoting the business in an attempt to keep it open. The restaurant is shifting to a more casual service model, with fewer plated dishes and more sharable, group-friendly food. Sommer Peterson

Peterson had said the business was struggling in part because many customers who were once regulars were forced to relegate Shangri-La to a place only for special occasions due to rising prices.

She is reducing staff costs by having customers order at the counter, with open seating. This allows her to keep prices down. Limited reservations will be available on Fridays and Saturdays with full table service.

Peterson still wants Shangri-La to be the place people think of first for special occasions as well. Private events and large group reservations for up to 20 are available with advance notice.

One area she is unwilling to compromise is with the food. Peterson insists on still breaking down whole ingredients from scratch.

Above all, Peterson’s top priority is to keep Shangri-La a safe space for her community.

“We mean something to people. Even in our hardest time we’re still showing our community love, and we’re getting it back,” she said.

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Sean Timberlake
The Sacramento Bee
Sean Timberlake is the food and dining reporter for The Sacramento Bee. He has been writing professionally for nearly 30 years, and about food for 20. A variety of well-known outlets have published his work, including Food Network, Cooking Channel, CNN, Sunset Magazine and SF Weekly. 
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