In January 2024, a fire destroyed Barrio Bar and damaged the surrounding Portland Mercado building at 7238 SE Foster Road. Since then, Portland residents have eagerly awaited the dining destination’s restoration and worried as the once vibrant space sat empty. Repair work and improvements began in May, with Summit Reconstruction & Restoration crews continuing to work through the summer thanks to a Prosper Portland grant. The non-profit site operator, Hacienda CDC, recently began fundraising to complete the needed repairs that include enhancements to the space. The organization is currently soliciting tenant applications for the interior units, along with food cart operators to surround the property. When crews complete principal construction at the end of spring 2026, the improved two-story building will feature a new commissary kitchen, enhanced community gathering areas, a ground-floor bar, and rooftop bar space with adjacent terrace seating. Later in summer 2026, after tenants have settled into the space and crews complete site work, the Portland Mercado will welcome back guests for a grand reopening.
This current fundraising effort is the second request for post-fire public support. The Portland Mercado Fire Relief Fund closed in January 2024 after raising a reported $255,726 from individuals, businesses, and foundations. That money helped the displaced operators and did not contribute meaningfully to the reconstruction efforts. Now the project needs additional support from community members and grants to realize the plans for a rebuilt and improved destination on SE Foster Road.
Matt Kebbe, with Hacienda CDC, explained that the new space will build upon the successes of its past iterations, while also aiming to enhance the food hall and cart pod property to accommodate more guests and provide opportunities for expanded site activation. He anticipates collaborating with future tenants to create space for a coffee shop or bakery, allowing the Mercado to open earlier than its traditional lunch and dinner service. They are also looking to cultivate a chef’s table type space for experiential dining. “I think if we can pull off an inside chef’s counter, that would be really exciting, and the neighborhood would enjoy seeing that. It could be a space where we host pop-ups. So, a chef could do a residency there for a month or two, or whatever duration they’re interested in. It also gives us an opportunity to showcase some up-and-coming chefs and give them an opportunity to present their food to people,” said Kebbe.
Although the Portland Mercado will feature new tenants, the operators have an interest in seeing as many of the former occupants return as feasible. The displaced businesses include Havana Station, Fernando’s Alegria, Principe Maya, Tierra del Sol, Que Bacano, XoCOTL, Tita’s Kitchen, and Barrio. Some of the culturally rich culinary destinations impacted show intentions of returning next year based on their social media and websites. However, other operators have found new locations or other work. Barrio Bar’s owner, Chris Shimamoto, took a position at the Publican Beer Room within the Collective Oregon Eateries (CORE) food hall on SE 82nd Avenue. He continues to cultivate his community at CORE, and former regulars still make the track to his new professional home.
The rebuilt Portland Mercado building will offer divisible space for six or seven tenants inside the structure. The most significant expansion of the commercial space comes from converting the second-story office area into a second bar location that will extend into a covered rooftop terrace. Kebbe explained that they hope a single tenant will run the upper and lower bar service. The management group is also considering reorienting the food cart stalls to expand to the edges and face inward. That would help buffer the space from traffic and add more safety to guests. “I would like to enclose the whole property and create a courtyard out there, so the food carts would reorient towards the sides and towards the roads. We could put some fake leaves [on a fence], or find the funds to build a really gorgeous wall and provide more of a security component to it and a barrier from traffic for the safety of families and small children,” Kebbe said.
Work on restoring the main building, which the fire significantly damaged, is progressing according to City-approved plans, aiming to have the tenant take over the space. Those businesses will take over the remainder of the finishing process to meet the specific needs of that group. However, some of the future site enhancements are dependent on financial support from the community and grants Hacienda CDC will pursue. “We’re just really excited for the Mercado 2.0. We think it’s going to be a great opportunity for us to not only bring back things in a way that the community members remember, but we have some improvements that we think that’s going to make it an even better experience,” said Kebbe. However, he noted, “fundraising is really critical to keep the project rolling at this point.”
Kebbe explained that the Portland Mercado is more than a food cart pod and commercial space, requiring other sources of funding than a traditional business location. The operation has maintained a focus on creating accessible opportunities for small businesses breaking into foodservice entrepreneurship. “We’re trying to figure out how to help people create businesses. There’s always been an ethos of the Mercado that has been an incubator or a jumping-off point for people. We’re not envisioning this in an incubator model but still providing opportunities for people to get in and experience running a business in a convenient turnkey environment.”
Work on the Portland Mercado will continue well into 2026, but site operators are exploring ways to bring some cart vendors on-site before the project’s completion. Kebbe noted that having early tenants is complicated due to construction schedules and worker access, but he would like to see the site active again as soon as possible. He also wants to restore the space as a community resource, where it can host farmers’ markets and other events for the growing population in the area. People should expect significant progress to be completed in spring 2026, followed by places opening to customers in the summer months.
