Hobee’s Town and Country restaurant will close down at the start of next year.

The restaurant will shut down its business on Jan. 5, 2013, after serving Town and Country customers for the past 28 years. A sign posted outside the front door outlines the details of the closure.

Financial issues brought upon by Town and Country’s recent renovations are the main reason for the closure of Hobee’s. If it would had chosen to stay, Hobee’s would have been required to pay the cost for the remodeling of the building, along with the increased rent recently implemented by Town and Country property owners, Ellis Partners.

Part time branch manager Raphael stated how he felt about the loss.

“It’s sad, but there’s nothing we can do,” Raphael said. “The company felt, with what we were asked to fulfill financially after it [the renovation], that we wouldn’t make a profit anymore,  so it wasn’t worth it to keep going.”

The newly vacated space is expected to reopen as Gott’s Roadside, a gourmet hamburger restaurant, which will compete for customers with long-standing neighbor Kirk’s Burgers.

Hobee’s is the second Town and Country restaurant to go out of business in the past year for financial reasons, the other being Korean Barbeque. It is all part of a Town and Country’s renovation that will be carried out by Ellis Partners.

Jamba Juice is expected to relocate to the empty building across from Asian Box and Halo Blow Dry Bar will also be transferred to a new building.

The 35 Hobee’s employees at the Town and Country restaurant will be relocated to its eight other restaurants around the bay area. The Hobee’s situated on El Camino Real will now be the lone Hobee’s restaurant serving Palo Alto.

For more information on Hobee’s, click here.