After 10 years of serving up street-style Mexican cuisine at 38 John St. in Uptown Kingston, Diego's Taqueria has closed its doors.

The announcement came on May 3 over Diego's social media accounts, in posts signed by owners Isaac and Elena Cruz and the Diego's Family. “The space was a constant,” reads an excerpt from the post. “It was our backbone. It's hard to even truly acknowledge what we've been able to accomplish in these walls; worked alongside and grown with some amazing people, hosted milestone events, created a second location from our hearts. Even survived a pandemic. We can't take the walls with us, but we're taking the spirit.”

The statement goes on to cite “costs and general overhead doubling and even tripling” as the main cause for the restaurant’s closing. Diego's will continue to vend at special events, including at Opus 40 this summer, and has dates available for its private party and catering business as well. In addition, a GoFundMe page has been created to help bolster business and cover costs.

In the wake of the Covid-19 Pandemic, Uptown Kingston has seen several other restaurants and businesses close, including long-running mainstays Duo Bistro, Outdated Café and Boitson’s. Like Diego’s, these restaurants have also cited rising overhead costs and pandemic-related difficulties as causes for their closures.

“Running the space was just not feasible with rising rents in the Hudson Valley,” owners Isaac and Elena Cruz told Kingston Wire this week. “We pay our staff well, but we can't operate in the same ways as a large business group. It often appears like small businesses are making a lot of money, but between insurance costs, Central Hudson and food prices, you're drowning in costs, and quality can’t be sacrificed. You can’t simply pass on those costs to the customers.”

The pair also expressed how rising rents made it difficult to maintain staffing. “The staff can’t work here if they are struggling to pay rent in Kingston.”

Diego's took over at the 38 John St. space in 2014 following the departure of previous tenants Lucy's Tacos. In the 10 years since opening its doors, it has amassed a following of fans and regulars for its sit-down restaurant and lively bar, and for their original takes on street-style Mexican classics. Head chef Elena was featured on Season 32 of the Food Network program “Chopped,” and they received Chronogrammies for best taco in 2020 and in 2021, as well as winning Best of the Hudson Valley in 2017.

Fans of Diego's poured into the comment section of its Instagram post to express their condolences, gratitude and excitement for what comes next. “What an amazing ride,” reads a comment by the restaurant. “Thanks for being on it with us. See you on the next one.”