<\/p>\n
In my neighborhood, a successful restaurant that did a massive weekend brunch business closed over a lease dispute with the owner of its building. The restaurant was willing to pay an increase, but not as much as the landlord wanted.<\/p>\n
That happened right before the Covid pandemic, and the location still sits empty. The restaurant, whose owners had promised it would reopen elsewhere, still has not made a comeback.<\/p>\n
It’s a familiar story in cities around the country, where restaurant operators can find themselves competing against landlords seeking higher rents when leases expire.<\/p>\n
In hot markets such as Miami, restaurant operators are even putting their leases up for sale.<\/p>\n
\u201cThere are a lot of people looking for second-generation restaurants,\u201d Fabio Faerman, a listing agent for real estate, told The Real Deal. \u201cThe tenant or the landlord of a restaurant that is closing can ask for key money. And [a new operator] is willing to pay for it.\u201d\u00a0<\/p>\n
That’s a positive development where both parties win, and consumers benefit from a new restaurant opening. <\/p>\n
Not all lease transfers happen that smoothly, and an ugly battle has been going on in New York over the fate of three high-profile restaurants operated by Ark Restaurants.<\/p>\n
Bryant Park brands face eviction<\/p>\n
Ark Restaurants operates three separate brands in New York City’s Bryant Park \u2014 Bryant Park Grill, Bryant Park Caf\u00e9, and The Porch at Bryant Park. All three currently face eviction, with Ark’s stay expected to expire in October.<\/p>\n
“In 2025, the private nonprofit that oversees Bryant Park attempted to evict Ark Restaurants from the park-adjacent restaurant locations, announcing at the time that Jean-Georges Restaurants and Seaport Entertainment Group had won a bid to operate the venues. But required approvals from the city\u2019s Parks & Recreation and the New York Public Library were never obtained,” Nation’s Restaurant News reported. <\/p>\n
More Restaurants:<\/p>\n
52-year-old international restaurant chain closing all locations46-year-old casual dining chain closes underperforming locationsClassic burger chain has closed down all its restaurants<\/p>\n
The restaurants remain open, as both sides have filed legal action.<\/p>\n
In July, however, the court sided with the landlord to evict the Ark concepts, though a stay was granted pending an appeal.<\/p>\n
“As it stands, Ark is continuing to operate the restaurants on that stay, and the company is seeking an extension, a reversal of the eviction decision or further relief. But, without those options, Ark said ‘the company will be required to vacate these premises and cease operations at these locations upon the expiration of the stay, currently expected to occur on or about October 16, 2026,'” NRN reported.<\/p>\n
Ark has continued to operate its Bryant Park restaurants.<\/p>\n
Shutterstock<\/p>\n
Ark comments on Bryant Park restaurants<\/p>\n
Ark Restaurants CEO Michael Weinstein commented on the situation during the company’s third-quarter earnings call. <\/p>\n
“The situation in Bryant Park, we think the litigation is going kind of well for us. There’s not necessarily certainty about us renegotiating a new lease, but the judge in the last hearing did award us the right to monetary damages on a breach of lease by Bryant Park Corporation,” he said.<\/p>\n
Weinstein also noted that there is a hearing to set a trial date in September. “Monetary damages on that could be significant,” he added.<\/p>\n
A financial victory, however, does not mean the restaurants will stay open. <\/p>\n
“That does not mean that we’re necessarily going to get a new lease. That’s going to be a negotiation at some point. We hope with the Parks Department and the proper people at Bryant Park Corporation, but those monetary damages could be significant and hopefully give us an opening for a negotiation,” he said.<\/p>\n
The most recent legal decision can be found here on the New York Courts website.<\/p>\n
Bryant Park is big business<\/p>\n
The Bryant Park Company (originally the Bryant Park Restoration Corporation) was founded in 1980 and by 1983 had proposed an $18 million redevelopment of the park that included a security force and \u201chuge glass restaurant,\u201d according to New York Magazine’s Grub Street.<\/p>\n
The restaurant has proven to be big business.<\/p>\n
“Ark has been involved since 1995 when it opened the Bryant Park Grill. It\u2019s one of the country\u2019s top-grossing restaurants, and combined revenues for its three park businesses \u2014 which also include the Porch and Bryant Park Caf\u00e9 \u2014 amount to $28 million a year,” the website shared. <\/p>\n
Weinstein alleges that the deal to lease the properties to Jean-Georges Restaurants and Seaport Entertainment Group will be for less money. <\/p>\n
\u201cYou\u2019re doing a deal with Seaport, you\u2019re throwing out 250 employees, and you\u2019re accepting at least $1.2 million, $1.4 million less in rent. Who does that?\u201d Weinstein told Grub Street. \u201cIt\u2019s a disaster for the park.\u201d<\/p>\n
BPC’s attorney shared a brief statement after the court decision to allow the eviction.<\/p>\n
\u201cWe are very happy with the decision,\u201d Corporation lawyer Gil Feder told The New York Post.<\/p>\n
Related: Costco’s new service beats Amazon at its own game<\/p>\n
#31yearold #restaurant #brand #faces #shutdown<\/p>\n","protected":false},"excerpt":{"rendered":"
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