Saturday, December 1, 2012

Bernanke Forces Closing of NYC's Famous Stage Deli

FOX News NY reports:
The famous Stage Deli in Manhattan has closed. Visitors on Friday were greeted with a hand-written sign on the door that said "Thanks for 75 years!"

The deli, on Seventh Avenue near 54th Street, got its start 75 years ago. It was known for overstuffed sandwiches named for celebrities.

It was popular with Broadway audiences.

Co-owner Paul Zolenge says the dining landmark had been struggling for some time.

He told The New York Times that yet another rent increase was expected when the lease ended in a few months.

According to Zolenge, “Ben Benson’s closed, and Gallagher’s is closing, too.” What's with all these closing of traditional American spots?

Note that Zolenge said the rent is going up. Who is paying a rent that a famous deli can't afford? If you take a look at stores in  the vicinity of where the deli operated, it's all tourist traps catering to foreign tourists. Stage Deli didn't have a chance, since it mostly catered to Americans.

A lot of the money that Fed chairman Ben Bernanke has been printing up has ended up overseas. Now, it's the revenge of the foreigners. They are visiting NYC and spending those dollars. Down go shops and restaurants in the Tines Square area that cater to American tastes, up go shops that foreigners will spend their money in.

Thanks Bernanke.

1 comment:

  1. But Carnegie Deli, Katz's, Junior's, Patsy's, The Four Seasons, Keens, Peter Luger, Smith and Wollensky, etc., are all still open and, yes, rents are indeed going up, but these old time(isn) spots can make their payments. Plus, the West Village, Chelsea, NoLITa, Union Square, and LES restaurants scenes are absolutely thriving.

    Just because Stage Deli was famous and a landmark doesn't mean it was immune to market forces as you're implying, Bob. That being said, Mad Ben's money printing may have exacerbated an existing condition as opposed to causing the business failure.

    What was the quality of Stage Deli's food? How was the service? How long since they've changed the menu? Was the space clean? How were the prices in comparison to what you're getting and what their competitors were charging? How consistent was the food, service, quality, cleanliness, etc.?

    I used to love the Brooklyn Diner and went there a lot when I first started working in New York after high school. At the time, it was a cool place, with lots of cred from famous clients and they had a killer meatloaf special. Then they took it off the menu. Then the chicken livers. Then the Roumanian Steak. I've been back a few times but really, the nostalgia wasn't enough to keep me coming back when there were better places downtown.

    As for Ben Benson's and Gallagher's closing, I can't say I'm surprised. At each, the service was spotty, the food inconsistent, and the prices climbing with decreasing quality of product.

    There's definitely a market for Americans, but you have to meet their demands. Isn't that always the way, though?