Huge Rent Hike Forces Boise Restaurant to Close State Street Spot

Just as the calendar flipped to 2026, a local restaurant owner shared a very sincere, kind and optimistic message on the restaurant’s Facebook page. While he already had a successful restaurant in another part of town, he acknowledged that his team was new to the neighborhood. 

In that message he said he aimed to learn what was important to the regulars of the location he was taking over and earn their trust. #1 Mongolian BBQ has been serving happy customers on Overland for nearly a decade and hoped to bring that same culture to a similar restaurant they leased on State Street. However, rather than giving the location a fresh start and moving forward with big plans, the location will now close for good. 

READ MORE: Nearly 50 Boise-Area Businesses Closed for Good in 2025

In an emotional video posted, an employee explained that the restaurant was facing a 40% rent increase just six months after taking over the space in July 2025. The team had high hopes for the State Street location. They had a major remodel planned that would bring the space close in look and feel to their longtime Overland location. 

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However, with the rent hike they had two options. Either bleed every dollar they had hoping for a miracle or cut it loose. The ownership made the tough, but smart decision, to move on without their second location. They’ll now fully focus on their original location and plan to use some of the funds they had set aside for the remodel to improve the experience on Overland. 

The State Street location’s Facebook page shows that the last day will be Monday, February 16.