Sticky’s Chicken Joint, a favored establishment in New York/New Jersey for 13 years, recently filed for bankruptcy in U.S. court. It stated that without court approval of its asset-sale plan, the case would shift to Chapter 7, necessitating the closure of all 12 restaurants and the sale of kitchen equipment, lease rights, and inventory, as reported by Restaurant Business Online. Sticky’s aims to sell approximately $2 million in assets to Harker Palmer, a private investment firm. If court approval is granted for this sale, the restaurants can continue operating.
Sticky’s was among the cherished restaurant chains confronted with bankruptcy in 2024, with debts between $1 million and $10 million but assets under $1 million. Currently operating under Chapter 11, the brand can keep its locations open while restructuring and selling off its assets. If the court rejects the asset sale, Sticky’s states, “…conversion to Chapter 7 will follow resulting in no recovery to any creditors,” according to Bloomberg Law. Consequently, there won’t be sufficient funds to repay most creditors.
The bizarre blame: The cold and NYC congestion pricing
Sticky’s attributes a decline in December sales to two main factors: severe cold weather and New York City’s new congestion toll. These elements together reduced customer traffic during peak hours in key Manhattan locations. According to National Weather Service data, Central Park’s average temperature dropped to 38.2 °F in December 2024 — the coldest since 2017 and more than 6 °F below December 2023’s average of 44.6 °F. This decrease in temperature led to fewer visitors to Sticky’s Finger Joint.
Additionally, New York City began charging cars to enter the area below 60th Street, effective January 5, 2025. Any passenger car driving south of 60th Street incurs a $9 fee during peak hours (5 am to 9 pm weekdays, 9 am to 9 pm weekends). Overnight trips are charged $2.25. These were the “introductory” rates approved by the Metropolitan Transportation Authority following a late-2024 vote, with planned increases to $12 in 2028 and $15 by 2031.
Sticky’s claims this new expense impacts it more than other chains as five of its ten stores are within the toll zone, meaning every customer and delivery vehicle incurs a fee just to reach the restaurant. With customers already staying home due to last winter’s severe cold and the toll, Sticky’s sales fell by over $250,000, according to its bankruptcy filing.
Pandemic, rent hikes, and legal fights
In 2024, the COVID-19 pandemic caused numerous restaurant chains to struggle. It significantly reduced Manhattan’s lunchtime crowds, forcing Sticky’s 12-unit chain to rely heavily on third-party delivery apps. CEO Jamie Greer informed the bankruptcy judge that these apps accounted for a larger share of orders, but their fees cut into already thin profits as chicken and potato costs rose. Nation’s Restaurant News reports that, even after some office workers returned to work a few days a week, foot traffic never fully recovered. Sticky’s attempted to raise menu prices to offset the losses, but higher prices deterred customers instead of increasing sales.
Moreover, the cost of doing business increased. Prior to the shift to remote work, Sticky’s had signed two costly Midtown leases. One lease for about 1,300 square feet at 1450 Broadway cost $387 per square foot annually — nearly $500,000 per year. The other lease for approximately 1,600 square feet at 237 Park Avenue was $250 per square foot, or almost $400,000 annually. These rates are at the high end for street-level space in that area. When many offices reduced to a three-day workweek, Sticky’s couldn’t attract enough weekday customers to cover these hefty rents. This financial strain became evident in early 2021 when the landlord of its corporate office at 33 East 33rd Street obtained a $576,069.05 judgment for unpaid rent, one of the largest unsecured claims in Sticky’s Chapter 11 filing.
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