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2nd Avenue Deli Heartbreak

2006_01_2ndavedeli.jpg

A shuttered 2nd Avenue Deli was an unfamiliar site on an otherwise regular Thursday - except that people knew that owner Jack Lebewohl was engaged in a kind of protest against his new owners, Jonis Realty, over a $9,000 increase in rent to $33,000 per month. The NY Times sets up the situation as an inevitable turn of the real estate market, with some interesting details: Some sort of rent increase was part of a deal with the previous owners 15 years ago (!) - and Jonis apparenlty agreed to knock off $3,000 of the rent. Huh - if someone generates a model that can project, hmm, let's see, what an acceptable margin of profit would be, over 15 years, and see how that might offset a 25% increase in rent, with considerable new capital investments to make, taking into account inflation, wage issues, and price elasticity (or inelasticity), please tell us!

And the Daily News says Jonis bought many properties in the neighborhood for a total of $93 million and gives an example:

Across the street from the deli, Abitinos Pizzeria, which has the same landlord, celebrated its grand opening early last month. It closed three weeks later because its owners realized the foot traffic couldn't support the $14,000 a month rent.
This is a very complicated equation, the cost of doing business (rent, staff, supplies) and the cost of staying open, with lots of questions - should owners operate knowing they'll have to survive 25-40% rent hikes, being one. Will New York City be like some other cities, such as Tokyo and Hong Kong, where restaurants can no longer afford street level property and will move upstairs? Well, that might be unlikely given the city's strict zoning laws, but what else is there?

Lebewohl still hopes to work with Jonis, though he has been saying ominious things like, "If I don't get this resolved in x number of days, I'll vacate," as quoted in the Times (which added it was unclear what "x" was) and other papers. When Gothamist stopped by yesterday, we noticed with fresh eyes that there's a Dunkin' Donuts up the street, a gleaming North Fork bank directly across Second Avenue, and a Starbucks down the street. East Village, indeed.

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  • Charles and Kathleen

    What's most sad, the way our culture continually

    consigns to obscurity whatever is beautiful,

    rare, redolent of ritual. It appears homogeneity

    and earth-movers shall reign, barring a miracle

    of some sort.

  • Dale

    I for one will miss the Pastrami Sandwiches... and Jews already control the world, haven't you been to Hollywood?

    (where to these wackos come from?)

  • Who cares about some stupid Jew deli?

    Lets be honest: Jew food is horrible.

    If you visit my Wikipedia user site you will see my controbutions to posting the truth about Zionism and its plot to dominate the world.



  • Corned Beef Guy

    It seems from an article I just read online that 2nd Avenue Deli was already owing back-rent in excess of $100K. The new landlord had already filed an eviction proceeding. When a building owner buys and finances a property, they need to rely on the current leases in place (if for nothing else than to pay their mortgage). Why shouldn't they? That's what real estate companies do. The only check and balance against this type of situation is community support. But I believe that there is good reason for the total lack of public outcry and support...

    If Jack Lebewohl knew that he was in dire financial trouble, why didn't he try to seek help from the community, government, media, etc? There are certainly enough powerful and passionate people in the city who would have rallied and helped to support the deli in some way. The rich and famous eat there all the time. With adequate warning, there could have been a huge PR blitz that could have helped.

    Jack's brother Abe had a reputation for loving the community. The business was more than a balance sheet to him. The manner in which Jack L. simply closed the restaurant without notice to his staff or customers shows the kind of guy he is. Why not give people a chance to say "good-bye"? His sudden closing of the deli has a punitive feel to it. But who is he punishing? At a minimum, where was the press release thanking customers that were loyal to his restaurant for decades (and agreed to pay $7 for a knish)?

    This place was literally a second dining room to many people in the city (including my wife and me). We LOVED the place. We had our favorite waitress and would only sit in the back room. When I first heard about the closing, I was devastated and sure that it was a negotiating tactic. But now that the true story is out, it seems more a case of, at best, an incompetant owner with a poor understanding of PR and, at worst, a greedy business owner. Maybe living in the shadow of a legendary, loved and martyred older brother was the culprit. Maybe the thought of destroying Abe's legacy is somehow consciously or subconsciously behind this (the images I've seen online of the workers taking down the 2nd Avenue Deli sign with Abe's name signify this perfectly) . In any event, Abe will always be remembered by those of us who ate his wonderful food. Abe Lebewohl Park (across the street) will exist for a long time. Sitting in that park and remembering the corned beef will have to be enough.

  • Peter Buchin

    He has made his bed, let him lie in it...

    "For a few years, Lebewohl worked as a waiter at a twelve-seat coffee shop on Second Avenue and E. 10th Street. In 1954 the family purchased the property, and gradually expanded it into a 250-seat restaurant, the Second Avenue Deli."

    When did the family SELL the property? Why? and for how much?

    Why does this business owner think that he shouldn't upgrade his leasehold to meet health department mandated requirements? Was he actually surprised when he went to the restaurant supply company or got a quote from the contractor?

    There ARE no coincidences... priced out of the market? How SAD! How many families have been priced out of the market by "greedy landlords" and now commute to their jobs?

    If you long for a Jewish spiritual experience from the old country then you should go to shul!

    While having to travel to another borough for food under supervision may be anathema for some, just try living in a place where there are NO suitable restaurants, much less markets that have pas- or cholev-Yisroel foods.

    I ate at the 2nd Avenue Deli a few times... B&M Dairy and the little Ukrainian places had FAR superior food. As for the "experience..." Rude waiters and cutsie food names... who cares about some greedy restaurant owner?

  • Gary Barnartt

    A reply to the few comments above re: 2nd Ave Deli's prices: Like it or not, obtaining (and retaining) a recognized kashrut (kosher) certification is a VERY expensive proposition which is inexorably reflected in menu prices. So, yes, 2nd Ave's prices were high(er), but that becomes a non-factor for those who follow kashrut.

  • If it's just the pastrami you are after, the 2nd Avenue Deli has only always served Hebrew National. You can get that at C-Town. For the experience or the Yiddish Walk of Fame, well...

  • Renie

    Mr. Lebewohl may indeed be playing for media attention, but that does not mean the landlord is not greedy, impolitic, and heartless, and the tremendous contribution of the Lebewohl family to the community has to be taken into account. For people of Jewish heritage, and those who value Jewish heritage, in NYC, the deli is a great source of culinary/spiritual sustenance. Even if the pastrami sandwich goes as high as $25, it's worth it!

  • Renie

    Mr. Lebewohl may indeed be playing for media attention, but that does not mean the landlord is not greedy, impolitic, and heartless, and the tremendous contribution of the Lebewohl family to the community has to be taken into account. For people of Jewish heritage, and those who value Jewish heritage, in NYC, the deli is a great source of culinary/spiritual sustenance. Even if the pastrami sandwich goes as high as $25, it's worth it!

  • Putney

    Let's also mourn Ratner's and Rappaport's while we're at it too.

    The closing of the Orchidia, a Ukrainian-Italian restaurant on the NW corner of Second Avenue and 9th Street, more than 18 years ago, was another beginnings of the demise of the East Village.

  • Davastav

    Naturally I feel saddened by the potential loss of the landmark - not only do I love the food even though kosher deli is overpriced to begin with but eating there has an emotional comfort level for myself as well as many others. I used to go there with my mom who is now passed and despite rising rent and operating costs that no business is immune to it will be a loss to the city in general.

    My take on this whole situation is that Lebewohl is playing hardball in negotiating his lease - trying to get public opinion for him and against those "greedy and pesky" landlords who for some reason should not be allowed to make a profit on renting to tenants while taxes and fuel costs etc continue to rise. Its Ok for landlords to absorb 100% and let tenants (even long-term popular tenants with the public) exist paying 1990 rent prices..

    I just hope the two parties can meet in the middle somewhere..

    Plan on paying $15 bucks for cholent very soon if the deli renews.

  • y

    You might want to also recall that the price on the 2nd avenue deli food is also higher because it is kosher. Katz's (surprisingly) is not. Anyone who has looked at the price difference at the supermarket knows that kosher meat is excessively more expensive. And, moreover, those of us who do keep kosher don't have too many (meat) options aside from the 2nd avenue deli (short of making trips to Kings Highway, Midtown, or Flushing).

  • mr. coffee

    starbucks is really just a replacement of now gone places like the woolworths lunch counter and chock full o nuts where you could sit around for an hour and drink coffee - although cheaper. yay, a new quiznos.

  • alex

    "quizno's closed on st. mark's months ago. "rugged sole," the shoe store on west 8th by fifth ave is opening a new spot there."

    Isn't another Quizno also opening up right across the street from the "Strand" on 12th and B'way, too?

  • LivedTooLong

    sorry this has moved away from the 2nd ave deli, but:

    dude, I only point out your corporate mismemory to show how fleeting these things are - a point also proven by the fact that the quizno's I mentioned is already off st. marks. bitching about all the companies in the city that employ New Yorkers is a waste of time and shows an inability to look at the bigger picture. New York City is not a static place. It is instead an incredibly fluid place that is constantly overcompensating and self-correcting itself. That is why many of us love it.

    Would I prefer it if there were no Starbucks in New York? Yes, I would. Personally I think their coffee is awful. So I don't drink it. I drink coffee I get for $.50 from my corner bodega. But do I complain about all of the Starbucks in the city? No, not unless they fuck with me personally (happened once, a story for another time). In the meantime I appreciate the fact that many New Yorkers do like the place, and that many New Yorkers are able to pay their rent thanks to them. if I thought that Starbucks were really taking away any alternatives then my opinion might change, but I'm not seeing much evidence of that (a caveat: the lack of coffee alternatives outside of the City, from what I've been led to believe, is a different story).

    As for your comments about Pottery Barn and Crate and Barrel on the BroHo corner... Whatever. Move to san fransisco.

  • The Big Lebewohl

    Jack

    Bloomberg isn't working on saving 2nd Ave Deli because the OWNER negotiated the rent hike into the contract!!

    READ THE DAMN ARTICLE

    This is a gimmick and you have fallen for it.

  • Just dawned on me: How come Michael Bloomberg is working with Hilly Kristal to save his CBGB's t-shirt franchise empire, but is not doing anything about this?

    If Junior's in Brookly were to close, I'm sure that there would be a big stink. Why the silence on this?

  • Ethan

    Daniel,

    While I agree that the pastrami was overpriced, there is a vast difference between that deli's pastrami and the homemade stuff at 2nd ave. If you can't admit that, you know nothing of pastrami. That said, it has often been the consensus that the pastrami at Katz's was superior to 2nd Ave's version, although 2nd ave's corned beef was the better of the two. For the record, a pastrami sandwich at Katz's is about 12 bucks, which seems about 6 dollars more reasonable than 18.

  • I'm changing my stance on this after being a staunch supporter of LES history, but fuck the 2nd Avenue Deli. They've become an exploitative gimmick; their prices are the same as Planet Hollywood. You can't justify that kind of money for a deli sandwich unless they're trying to take advantage of people who want the Jewish Deli (or Times Square) experience. Let 'em rot, the deli on 9th at 4th Ave serves pastrami sandwiches for $3.50.

  • "Everyone seems to complain about them yet they must keep going, because they keep popping up."

    Actually, the problem with chain stores is that they do not necessarily rely on the revenue of one specific location to help them stay alive.

    Profit in chains is based on the average of sales across the chain and the specific outlets stay open unless they become a drain on resources.

    Starbucks is much more nefarious as they happily open multiple locations in one area to elbow out the competition. Sometimes these clustered outlets loose money. But that's okay. After 2-3 years of having sales squeezed away the competition folds and Starbucks is the only game in the neighborhood.

    And more to the point, there is no chain of Kosher delis out there so the argument is ridiculous.

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