Toronto restaurant that was a neighbourhood cornerstone closes after nearly 40 years

It's been nearly 40 years since Toronto's beloved Jumbo Empanadas opened its doors in Kensington Market — but, as of February 2026, owner Irene Morales is calling it quits.

When a "For Lease" sign appeared outside Morales' stalwart haunt on Augusta Avenue earlier this week, the local rumour mill began churning with equal amounts of shock and concern.

For the better part of four decades, the restaurant has been a hallmark of the market: could it really be closing down for good? Where will we get budget-friendly, made-with-love empanadas in downtown Toronto now? Is nothing sacred anymore?

Short answer: yes, there are plenty of other places I suppose (Gaucho Pie Co.?), and probably not.

Irene tells blogTO that she had actually been toying with the idea of shutting the business down a year ago, but found herself unable to say goodbye just yet.

"I tried to do this last year, but I couldn't. My heart was more broken than anybody," Irene says, "so I said, 'No, I'm gonna keep going.'"

But, she tells blogTO, as inflation continued to rise and Kensington Market's foot traffic, particularly through the winter, floundered, she finally made the decision to hang up her apron.

"We're living in a difficult time," Irene says. "That's it. Right now is a very, very hard time for everyone in the market." 

After losing the parking lot on Bellevue Avenue, it's become harder than ever for businesses in the market to attract business beyond resident regulars and summertime tourists. Ultimately, it's just not enough to keep a business alive while your overheads balloon relentlessly.

"And this is not a problem only here," Irene adds. "It's around the world. My country is the same: all the small businesses are dying because it's the same inflation, you know? The cost of living is too high now."

Jumbo Empanadas has already survived calamity once. Back in 2020, the restaurant sustained major damage after a fire broke out at a neighbouring business. A crowdfunding effort, financed by Irene's evangelical fanbase, helped to secure her return to business.

Despite Jumbo Empanadas' status as a certifiable Market staple, Irene tells blogTO that, ultimately, the stress of trying to keep the business alive became too much to bear.

"I decided maybe three weeks ago that I'm gonna rent it out, because I'm getting sick, emotionally, mentally, physically, because of the stress. The stresses start to affect you. You can't sleep very well. Sometimes I fall asleep at midnight, and I wake up at two o'clock, and after that, that's it," Irene explains.

"So I said, 'No, I did everything I had to do with my life, for everybody and for myself.' So I think it's time for me now to relax, enjoy my grandkids, and that's it. Continue life."

That doesn't mean the decision to close the business was an easy one, though. 

"When you create something, it's hard to let it go, you know. It's been my life. All my life, I've been inside that business, so it's very, very hard," Irene says, but at the end of the day, "it's time: It's time for me to relax now."

Jumbo Empanadas was formerly located at 245 Augusta Ave.