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	<title>Rudofsky Associates &#187; Dean Poll</title>
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		<title>Why Businesses go Bankrupt: Tavern on the Green</title>
		<link>http://www.rudofskyassociates.com/news/2009/09/23/why-businesses-fail-tavern-on-the-green/</link>
		<comments>http://www.rudofskyassociates.com/news/2009/09/23/why-businesses-fail-tavern-on-the-green/#comments</comments>
		<pubDate>Thu, 24 Sep 2009 00:49:51 +0000</pubDate>
		<dc:creator>David</dc:creator>
				<category><![CDATA[Case Studies]]></category>
		<category><![CDATA[Commentary / Opinion]]></category>
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		<category><![CDATA[bankruptcy]]></category>
		<category><![CDATA[Dean Poll]]></category>
		<category><![CDATA[Jennifer Oz LeRoy]]></category>
		<category><![CDATA[Tavern on the Green]]></category>

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		<description><![CDATA[Manhattan icon Tavern on the Green filed for bankruptcy under chapter 11 earlier this month, with chief executive Jennifer Oz LeRoy citing &#8220;extreme financial distress brought on by the current financial crisis and the City of New York&#8217;s decision not to renew our lease, as the dual factors behind the decision.&#8221; Described as &#8220;more spectacle [...]]]></description>
			<content:encoded><![CDATA[<p>Manhattan icon <a href="http://www.crainsnewyork.com/article/20090910/FREE/909109997" target="_blank">Tavern on the Green filed for bankruptcy</a> under chapter 11 earlier this month, with chief executive Jennifer Oz LeRoy citing &#8220;extreme financial distress brought on by the current financial crisis and the City of New York&#8217;s decision not to renew our lease, as the dual factors behind the decision.&#8221; Described as &#8220;more spectacle than restaurant&#8221; in the 2008 <a href="http://www.zagat.com/Verticals/PropertyDetails.aspx?VID=8&amp;R=51916" target="_blank">Zagat guide</a>, Tavern was informed by New York City&#8217;s Department of Parks and Recreation on August 28th that its lease would not be renewed, with the new 20-year lease for the space instead going to Dean Poll, who runs the Boathouse restaurant in Central Park.</p>
<p>A visitor to Tavern from Cave Creek, Arizona told Zagat in May of 2009: &#8220;The only thing worse than the food was the service!!! Absolutely a waste of time, after such a big build up. Food was bland, served lukewarm, like a low budget cruise ship or Las Vegas hotel. When I asked the waiter about a wine pairing, he pointed at the menu with his pen and rolled his eyes. Absolutely no substitutions or accommodations from the kitchen, [the] waiter explained that the kitchen staff is miserable.&#8221;</p>
<p>The kitchen staff probably became even more miserable to hear about the bankruptcy, especially given that Tavern owed $1.7 million to the pension and health benefits funds managed by the New York Hotel &amp; Motel Trades Council, the union that represents Tavern&#8217;s 400-plus employees.Â  Ms. LeRoy, who is hoping for a busy final four months until Tavern&#8217;s lease expires at year end, said in a statement that the restaurant plans to honor all of its obligations to its loyal employees.</p>
<p><em>Lesson Learned:</em> <em>In today&#8217;s recessionary environment, customers are looking for tasty food at prices that represent a good value, as opposed to glitzy decor.  As &#8220;Entrepreneur&#8221; explained in their November 2009 article about new trends in the restaurant trade: &#8220;Plush dining rooms, star chefs and menus built around foie gras and truffles feel outdated &#8211; while rooms that are simple, with a personal touch, feel right.&#8221;<br />
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