The sun is setting on Sunnyside Restaurant & Lodge as the community has known it for almost four decades. The longtime operator of the restaurant, T S Restaurants, is stepping aside in the fall to make way for a new operator — chef and restaurateur Mark Estee of Local Food Group.

T S Restaurants, which currently operates 13 destination restaurants in Hawaii and California, has run both the Sunnyside restaurant and hotel since 1987. T S CEO Jackie Reed said the decision was a mutual one made with the property owner, Tahoe Sunnyside Partners.

“It was a very difficult decision, but it felt time to return Sunnyside to a more local operator,” she said, “to do what was best for Sunnyside for the future.”

Estee has opened numerous restaurants in Tahoe and Reno, including Burger Me! and Moody’s Bistro Bar & Beats (though he is no longer involved with either). Before that, he served as the executive chef at Hyatt Regency Lake Tahoe’s Lone Eagle Grille. His group currently owns four restaurants in Reno — seven if you count Great Basin Brewery’s four locations.

Although Reed noted it’s been a difficult few years for the restaurant industry, she said the decision to part ways with Sunnyside was not a financial one. Mike Dumke, managing partner of Tahoe Sunnyside Partners, said the same thing.

“It’s been a great relationship with T S for 39 years, almost more like a partnership than a landlord relationship,” he said. “We both mutually came to the conclusion that it may be better to have them transition out and have a more local operator get involved in the property.”

Dumke said Estee plans on putting a fresh spin on the menu but will retain the theme of American fare as well as seafood and great burgers and adding some smoked items.

The new partnership also marks the beginning of significant investments across the property. Sunnyside will shut down Oct. 5 for renovations with plans to re-open April 1, 2027. The Local Food Group will remodel the restaurant, which includes an expansion of the kitchen and private dining spaces, while the ownership group plans on refreshing the 23 hotel rooms with new paint, carpet, and furniture, but no new construction. Tahoe Sunnyside Partners, which also owns Sunnyside Watersports & Marina, will manage the lodge going forward.

T S’s presence in Tahoe City began in 1978 with Jake’s on the Lake, then Sunnyside nine years later. Jake’s sold to a T S founder’s brother, Chris Thibaut, in 2005. Despite T S leaving Tahoe in the fall, Sunnyside will retain its storied name.

“It’s an emotional and bittersweet time for us,” said Reed, who noted T S is focusing on the Summer Send-Off celebration, with plans still in the works. “Not a lot of restaurants can say they operated for 39 years.”