Notable restaurateur Stratis Morfogen has decided to walk away from plans for a new venture due to drastic policy shifts proposed by New York City’s Mayor-elect Zoran Mamdani.
In an interview with Side Dish, Morfogen mentioned he’s stepping back from three upcoming properties, including one in Midtown West.
“I was holding off until after the election, but now I’ve changed my mind about signing any leases,” he expressed.
Just last week, Morfogen debuted his first restaurant in Miami, called Brooklyn Chop House Miami, which accommodates 400 guests and features a rooftop bar with skyline views at Wynwood’s Moxy Hotel.
“I won’t be entering into any new contracts in New York,” he affirmed. “I’m going to focus on what I already have. We’re not growing in New York, but we’re exploring options in Miami and other locations.”
“We don’t believe this mayor is capable of supporting small businesses,” he continued.
Richie Romero, a seasoned restaurateur, echoed those feelings regarding Mamdani’s unexpected victory over former Governor Andrew Cuomo and Republican Curtis Sliwa earlier this month.
Romero has paused new store openings except for an East Village location called Sushi by Bow, which was already in progress before the election.
“We’re going to hold off and see how things unfold,” Romero said, adding that Mamdani’s swift policy changes are unsettling to small business owners.
Romero further expressed concerns over rising anti-Semitism, socialism, and economic challenges under Mamdani’s leadership. “I felt compelled to voice my concerns, even if it invites backlash,” he remarked.
Having previously supported Cuomo, Romero mentioned he’s initiating a coalition aimed at “fighting socialism” and is still weighing his options.
Instead of investing in New York, Romero has launched 12 to 15 businesses in secondary markets like Atlanta, Dallas, and West Palm Beach.
Morfogen said he was close to finalizing a deal for a new restaurant on West 32nd Street and 10th Avenue but opted against signing. He’s also holding off on leases for new dining spots on the Upper East Side and the Upper West Side.
“No contracts for me at this moment,” Morfogen stated. “Let’s see what unfolds.” His concerns extend to Mamdani’s proposals, which he predicts could devastate fast-casual restaurants.
“If a $12 hamburger spikes to $22, charging $25 for a meal just won’t be feasible,” he argued. “We still face rent obligations, and a profit margin of just 10% is not sustainable.”
Morfogen is also apprehensive about public safety under Mamdani, who has criticized the NYPD.
He shared a personal anecdote, stating that illegal immigrants have attacked his family, with one incident leading to a hospitalization.
“Enough is enough. I cherish New York City, and even after the struggles during the pandemic, I felt I had no choice but to support him, as he’s a lesser evil compared to those who are against small businesses,” said Morfogen.
“I’m shocked that the city I love and grew up in would elect him. This isn’t the same place anymore,” he lamented, recalling his father’s Democratic values.
“This isn’t the New York my father adored. [Former Gov.] Mario Cuomo would be heartbroken to see the direction of the Democratic Party,” he added.
Morfogen also mentioned that the streets near a popular diner in Gramercy Park feel unsafe.
“Luckily, there’s a police station nearby. But can you believe this? [Mamdani’s] push to defund the police? That’s insanity. The signals being sent right now give criminals unwarranted confidence,” he said.
Romero also expressed frustration over Mamdani’s anti-business measures, which include taxing the wealthy and suggesting public grocery stores.
“There’s a high percentage of vacant storefronts right now,” he noted. “If you’re not a business expert, what advice do you have to improve the situation?”
Not everyone holds the same view. Restaurateur Mark Butcher, who co-owns medium-rare restaurants across nine cities, including New York, expressed optimism. He plans to open a new location in Manhattan next year.
Romero, however, sees his interest in the city as primarily for advertising rather than profit.
“New York serves as a major showcase, similar to Fifth Avenue,” he stated. “Opening in places like West Palm, Dallas, or Nashville feels far more viable financially. It’s tough to turn a profit here.”
