This Bellingham restaurant has been in business 139 years. What’s their secret?
Bellingham is home to many great restaurants, breweries and historic businesses, but did you know it’s also home to the oldest cafe and cocktail lounge in the state?
Head to downtown Bellingham and you’ll notice some large neon signs pointing out The Horseshoe Cafe & Bar, a historic restaurant that’s been in business since around 1886.
“When we purchased the Horseshoe about 10 years ago, everything (from the signage to the merchandise) proudly declared “Since 1886”. So, we rolled with it, assuming someone had done the digging at some point,” co-owner and operator Kate Groen told The Herald.
“A few years back, we asked local historian Kolby LaBree, co-founder of The Good Time Girls, to investigate. While she didn’t find a definitive record, she developed a theory that the date may have been traced back to one of the original co-owners who ran a Whatcom saloon in the late 1880s. At this point, we consider it a local legend with deep roots, and no one’s proven it wrong yet,” Groen said.
“The Horseshoe actually predates the city of Bellingham by a few years,” Groen said.
But how has this historic Bellingham staple stayed in business for 139 years?
“Fluctuations are part of the restaurant world, but the last few years have felt more like a roller coaster,” Groen said. “From the pandemic to economic shifts, each year brings something new. This year especially has had its ups and downs, and the uncertainty can be the hardest part.”
“The combo of lower foot traffic, rising costs, supply chain issues, new tariffs, and wage increases, has hit small businesses hard. Like everyone else, we’re doing our best to adapt. We plan as best we can, work as a team, and keep showing up every day with the goal of being just a little better than yesterday. That mindset has carried us through a lot.”
Groen credits the local community for keeping them in business all these years, along with its team of employees.
“The Horseshoe is deeply rooted in Bellingham, and this city has a way of showing up for its local businesses. Also,our team. Their kindness, commitment, and heart make this place what it is. We truly couldn’t do it without them,” Groen said.
So, what’s the secret sauce for success?
“Surround yourself with good people — folks you trust, who challenge you, and who are smarter than you in all the best ways,” Groen said. “Also, lean on your neighbors. The downtown business community has been a huge source of strength for us. Whether it’s brainstorming during hard times or just offering a listening ear, that mutual support is invaluable.”
She said having a business in downtown Bellingham also offers unique challenges and benefits.
“The pros are big. Downtown Bellingham has character. We’re close to WWU, surrounded by walkable neighborhoods, and right near the waterfront. There’s such a vibrant mix of people: locals, students, tourists. The energy is hard to beat. As for cons? The typical challenges of a city core, parking, safety concerns, but the good far outweighs the hard stuff,” Groen said.
“Our alley has always been a bit of a wild card, but we’ve seen real effort from the current city administration to help with the tools they’ve got. There’s been more cleanup and attention to safety lately, which gives us hope.”
Despite the changes and challenges downtown Bellingham might pose for business owners, the Horseshoe team has managed to keep customers loyal by serving up more than just delicious burgers, sandwiches, chicken and waffles, brunch options, craft cocktails and more.
“The history draws people in, but what keeps them coming back is the atmosphere.”
“There’s something real and unpolished about the Horseshoe, in the best way,” Groen said. “It’s welcoming, unpretentious and full of stories. It’s the kind of place where you can show up as you are, and someone probably knows your name, or at least your order.”
“It’s rare to find a diner that’s seen generations of regulars walk through its doors. That kind of soul can’t be faked.”
The Horseshoe Cafe & Bar is open from 9 a.m. to 2 a.m. Sunday through Thursday, and 9 a.m. to 2:30 a.m. Friday and Saturday at 113 E. Holly St. in downtown Bellingham.
This story was originally published July 15, 2025 at 5:00 AM.
