Sarabeth's, a long-standing fixture in New York City's brunch scene, has closed two of its Manhattan locations. The Park Avenue South and Greenwich Village restaurants served their final meals on Sunday, August 16. The company cited unsustainable economics as the reason for the closures of these two specific outposts. "Despite everything that was working well, the economics of running these two locations are no longer sustainable," Sarabeth's stated in an Instagram post.
The brand, founded by Sarabeth Levine in 1981, began as a small jam-making operation and expanded over 45 years to include multiple restaurants. Sarabeth's plans to continue operating its remaining locations at Central Park South and on the Upper West Side.
Legal Troubles for Upper West Side Location
Meanwhile, the Sarabeth's restaurant at 423 Amsterdam Ave. on the Upper West Side is facing legal action from its landlord, 423 AMCO. According to a lawsuit filed in Manhattan Supreme Court in late July, the restaurant's operator, BSWR Inc., allegedly owes $43,432.16 in back rent, additional rent, and percentage rent for May, June, and July. The landlord also claims the restaurant failed to report its monthly gross sales as required by its lease.
The lease modification from 2020 established a hybrid rent structure tied to sales performance, along with an additional percentage of sales to repay previously abated rent. The landlord asserts that Sarabeth's defaulted on this agreement after failing to pay base rent of $10,000 per month or 8% of monthly sales, and by not submitting sales figures within 30 days of the month's end.
After issuing a default notice on June 11 and a formal notice of lease cancellation on July 1, the landlord claims the lease was terminated effective July 13, though the restaurant remained in occupancy. The landlord is seeking a money judgment for the unpaid rent, an order for Sarabeth's to resume reporting sales, and the right to evict the tenant if necessary.
In August, a court order directed Sarabeth's to pay $17,810.72 for August's use and occupancy and to continue making monthly payments while the case proceeds. The order also prohibits the restaurant from destroying sales records and requires it to provide monthly gross sales figures dating back to March. A hearing on the landlord's full request, including the recovery of arrears, is scheduled for September 8.