Mellow Mushroom has closed permanently at Rockville Town Square. The closure is a high-profile one, in a central on-the-square location, at a development that continues to struggle with tenant turnover. Mellow Mushroom's owner, Danny Trahan, has openly spoken in the past about the high costs of operating a restaurant in Rockville and Montgomery County. "Did I make a mistake in coming to Montgomery County?" he asked last year. "I feel like I did."
Several forces may have contributed to the demise of Mellow Mushroom. The owner was outspoken in his criticism of landlord Federal Realty and the City of Rockville regarding the parking policies at Rockville Town Square. Trahan estimated that the parking fees cost Town Square tenants $5 million in sales annually. Patrons must buy something to receive validation to avoid paying for parking. About 20% are unaware of the validation option, and pay the fees even if they did buy something at a Town Square business, Federal Realty
reported at a Mayor and Council worksession on Town Center parking issues.
Many casual visitors who aren't sure they will spend money have been going where parking is free - Rio/Washingtonian Center, Downtown Crown and Pike & Rose (2 hours free at the latter). Property owners in the Town Center area have said they cannot afford to cover the cost of free parking under the restraints of the existing financial arrangements they have with lenders.
Trahan and other business owners have also complained that the limited hours of the Rockville Memorial Library across the square draw less foot traffic than a popular restaurant or retailer would. Montgomery County has slammed restaurant owners repeatedly this decade, starting with a massive hike in the Energy Tax in 2010. The County Council followed up with a historic property tax increase in 2016 that exceeded the charter limit, and a $15 minimum wage hike. "That's a lot of extra Slurpees to sell," one business owner said at a Council hearing on the wage increase.
The City's ban on outdoor smoking at the Town Square was the last straw for Trahan. "Are you trying to slow-poison business?" he asked the Mayor and Council incredulously at a 2017 worksession.