Two pillars of Lynwood’s nightlife looked like they were thriving. On Friday nights, the businesses were packed, cocktails flowed and wine poured, kids romped and events brought good vibes to the community.

But as of Oct. 13, Pleasant Beach Village’s Marketplace has cut back its hours to exclude evening service, Joe’s Restaurant is temporarily closed and the adjoining wine bar Earth & Wine has shut its doors for the season.

In a flyer posted in the restaurant’s window, Marketplace management stated that ongoing inflation, increased operational costs and staffing challenges made evening service untenable. Its new hours will be 8 a.m. to 3 p.m. Earth & Wine and Joe’s did not provide a public explanation for their changes.

“This decision was not made lightly,” Marketplace management wrote. “Thank you for your continued support and understanding during this transition. We are hoping more favorable times are ahead.”

The news shocked Kevin Lynch, general manager of the Lynwood Theater across the street. This past summer was “absolutely amazing,” he said, with hundreds of people “constantly here, almost around the clock.”

Lynch said those changes were a surprise. “Even right now, as I’m sitting in my office at two o’clock on a dark and dreary October afternoon, I can look down at Treehouse, and they’re doing business,” Lynch said. “I can walk outside and look to my left at Miguelito’s, and still see all these people sitting out on the deck. And they just introduced a bunch of new burgers at Hammy’s,” he said. “So people are sponsoring all of the eateries — that’s what makes this so perplexing.”

Lynch’s business had a synergy with Marketplace. The restaurant drew foot traffic, which spilled into theater seats, and Lynch rented out part of the marquee to Pleasant Beach Village’s event space. They shared a music director, award-winning composer Andrew Joslyn, and partnered to host live music almost every month.

Going forward, Lynwood Theater and the Treehouse Cafe will absorb some of the scheduled events, Lynch said. The theater is diversifying its entertainment to include concerts, comedy and forums, and the cafe will host more live music and trivia.

Community members lamented the loss.

”I loved the view on the patio at Joe’s in the summer and the cozy vibe indoors in the winter. I heard complaints about the food and the service, but I was too busy enjoying the ambiance to notice such things,” Susan Peterson of Bainbridge Island said.

Deborah Bach, also of BI, agreed. “I hoped the new hours didn’t impact the wine bar, but I later ran into someone who worked at Joe’s and he said Earth and Vine is now closed, which is really sad. We loved going there and having a glass of wine outside in the summer,” Bach said.

Pleasant Beach Village opened in 2012 after construction lapsed on the previous project, Blossom Hill, in 2009. Developer and founder of Windemere Real Estate John Jacobi purchased the half-completed structures for less than $10 million and began to convert the spaces into a high-end business and hospitality hub.

What began as a plan for about 15 apartments, 80 or so single-family homes and some upscale retail became an inn, a fireside lounge in the historic Manor House, storefronts, an event space in the former location of Edna’s Beach Cafe and 22 housing units. The Marketplace became the anchor tenant.

“We’re still open to what the community wants, and we feel this will complement what is already there,” he said in a 2011 interview with the Review. “My vision of this is as a service center that fits in with what exists.”

Completion of the Village dramatically shifted the economic vitality of Lynwood. It now rivals the Winslow corridor as a center for tourism, housing and shopping. During the public comment period for the recent Islandwide Comprehensive Plan Update, some BI residents cited the changes as a model for growth in the rest of BI’s neighborhood centers.

It’s unlikely that the loss of Marketplace’s hours is a bellwether of economic downturn, Lynch said, but it’s certainly not helpful. “Will this be a ripple effect? No, no way,” he said. “But if people don’t show up here and watch our films and have a cold beer and a glass of wine and a bag of popcorn while they’re doing so, it’s difficult for us.”

Some residents speculated the loss could be the fault of the business model. Some said it could have been that the restaurant and wine bar had become a toxic work environment.

Torin Larsen, another BI resident, blamed mismanagement. “And that’s been the story for over a decade — it’s been a revolving door of great day-to-day talent.”

Talina Wood, a 4th-generation BI resident, agreed. She said she was not surprised by the reduction in hours as recent changes to the tip-sharing process was the last straw.

As of Oct. 21, Joe’s Restaurant had listed at least 12 full-time positions on its employment website, including all front-of-house positions and multiple evening-shift line cook roles. Marketplace is hiring a barista.

Larsen pointed out that Marketplace could improve its bottom line by switching to beer and wine instead of a full bar, eliminating the need for a liquor license, which stipulates that the business must also serve food. “Most people who go there are there for the location, and they barely sell any cocktails,” Larsen said. “It really says something about the ownership that they can’t seem to make money when they have a great location, serve booze, have great staff, own the location and have plenty of customers.”

Pleasant Beach Village management could not be reached for comment despite numerous attempts.