Stratis Morfogen said he’s pulling the plug on three new establishments, including one in NYC's Midtown West. (Matthew McDermott)
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(by Jennifer Gould, NY Post) — New York City Mayor-elect Zohran Mamdani’s radical policy proposals have prompted high-profile restaurateur Stratis Morfogen to cancel plans to open new businesses.
He told the Post he’s pulling the plug on three new establishments, including one in Midtown [NYC].
“I waited for the election before signing and now I’m not signing,” he said.
Just last week, Morfogen opened his first restaurant in Miami. The eatery, called Brooklyn Chop House Miami, boasts 400 seats and has a rooftop bar overlooking the skyline in the Moxy Hotel in Wynwood.
“I’m not signing any more leases in New York,” Morfogen vowed. “I’ll keep what I have. We’re not expanding in New York but we are pursuing further opportunities in Miami and other cities. We just don’t feel that this mayor is suitable to supporting small businesses.”
Veteran restaurateur and nightlife guru Richie Romero had the same response to [socialist] Mamdani’s stunning defeat of former Gov. Andrew Cuomo, [a Democrat] who ran as an independent, and Republican Curtis Sliwa earlier this month.
Restaurateur Richie Romero has put a halt on new openings except for a new East Village outpost of Sushi By Bou, for which construction began months before the election. (Stephen Yang)
Romero has put a halt on new openings except for a new East Village outpost of Sushi By Bou, for which construction began months before the election.
“The hatred of Jews, socialism, the economics – it’s too much,” he said of Mamdani. “I had to be vocal. I get attacked, but it is what it is.”
Romero, who hosted fundraising events for Cuomo, said he is launching a coalition “to fight socialism” that is still in the works.
Instead of betting on New York, the lifelong New Yorker is opening 12 to 15 concepts outside the city in secondary markets — from Atlanta and Dallas to West Palm, Fla.
Morfogen said he opted not to sign a lease for an all-but-completed deal for a new restaurant at West 32nd Street and 10th Avenue. He also put the brakes on signing leases for new diners on the Upper East Side, at East 62nd Street and First Avenue, and on the edge of the Upper West Side.
“I am not signing any leases now,” Morfogen declared. “We want to wait and see what [Mamdani] does. His radical changes scare the s–t out of small business owners.”
“We want to wait and see what (Mamdani, above) does,” Morfogen said. (Getty Images)
The mayor-elect’s proposal to raise the city’s minimum wage to $30 by 2030 will “put fast-casual out of business,” Morfogen predicted.
“There won’t be any more diners for $25 a person if a $12 burger goes up to $22,” he said. “We will still have to pay our rent and our profit margin — at 10% — is too thin to survive.”
He is also worried about public safety under Mamdani, an ardent critic of the NYPD.
It’s personal for Morfogen, who said illegal immigrants have assaulted members of his family in recent years, leading one of the victims to be hospitalized.
“I have had enough. I love New York City and even after all the destruction with Cuomo during COVID, I was forced to vote for him because anything is better than a socialist communist with insane, anti-small business policies,” Morfogen said.
“I can’t believe that New York City, a city I love and where I grew up, voted him in. I’m not sure I recognize this city anymore,” said the restaurateur, whose dad was a Democrat.
“This is not the Democratic city that my father loved. [Former Gov.] Mario Cuomo (father of former Gov. Andrew Cuomo) is turning in his grave seeing what the Democratic Party has become.”
He said the streets don’t feel safe near his 24-hour Gramercy Park diner, called Diner24.
“Thank God we have a police station a block away. Can you imagine if [Mamdani] defunds the police? It’s insanity, and the message that is even being considered gives criminals a lot of confidence that they can get away with things,” Morfogen said.
Mamdani’s anti-business proposals like taxing the rich and opening publicly-run grocery stores angered Romero, too.
“You see 30 to 40% of vacant storefronts now,” he said. “How do you suggest that someone who is not pro business will make it get better?”
Romero’s Sushi By Bou in Chelsea, above. Romero said he is launching a coalition “to fight socialism.” (Hassan Mokaddam)
Not everyone agrees. Restaurateur Mark Bucher, who co-owns Medium Rare restaurants in nine cities including the Big Apple, said he’s “always bullish on New York City” and plans to open a new outpost in Manhattan next year.
But Romero said his main interest in the city is for promotional purposes, not making money.
“New York is a showcase — like Fifth Avenue,” he said. “It’s better to open in West Palm, Dallas and Nashville, where they are more business friendly. It’s impossible to make money here.”
Published at NY Post on Oct. 15, 2025. Reprinted here for educational purposes only. May not be reproduced on other websites without permission.
Questions
1. What actions is New York City restauranteur Stratus Morfogen taking in response to the election of socialist Zoran Mamdani as mayor of the financial and free market capital of the world?
2. Why is Morfogen opposed to investing more money in NYC with Mamdani as mayor?
3. What action has entrepreneur Richie Romero taken regarding new openings he was planning? — Why is he going forward with one opening?
4. For what reasons does Romero oppose Mamdani?
5. a) What are fast-casual restaurants?
b) What effect will Mamdani’s proposal to raise the minimum wage to $30/hour have on fast casual, according to Mr. Morfogen?
c) Read the “Background” below. How much will full-time hourly workers make if the government forces businesses to raise the minimum wage from $16.50 to $30/hour?
6. Why did Morfogen support former Gov. Andrew Cuomo for mayor over Mamdani, despite saying Cuomo did a bad job as governor?
7. Why is Mr. Morfogen concerned about public safety under soon-to-be Mayor Mamdani?
8. Stratis Morfogen and Richie Romero were willing to publicly oppose Zohran Mamdani. There are most likely many other business owners/entrepreneurs, as well as corporations in NYC who are concerned about the socialist economic and safety policies Mamdani wants to implement. Why do you think many have not publicly criticized Mamdani?
CHALLENGE: Read the two commentaries by economist Thomas Sowell under “Resources” below and answers the questions at the bottom of each article.
Background
Why a $30 Minimum Wage Could Threaten Fast-Casual Restaurants in NYC (question to Grok, Nov 13)
Explosive Rise in Labor Costs
- Fast-casual spots often have labor costs accounting for 30–35% of total expenses, including food (around 30%), rent (10–15%), and other overhead. Exceeding 30% labor typically erodes profits, as restaurants aim for 5–10% net margins.
- At $16.50/hour, a full-time worker (2,080 hours/year) costs about $34,320 annually in wages alone (before taxes, benefits, or overtime). At $30/hour, this jumps to $62,400—a 82% increase per worker.
- For a typical 20-employee fast-casual location open 12 hours/day, total annual labor could surge from ~$700,000 to ~$1.27 million. Morfogen has called this “unsustainable,” predicting it would “put fast-casual out of business” by overwhelming small operators without deep corporate pockets.
- Historical precedent: When NYC’s wage rose to $15 in 2018–2019, labor costs for many eateries climbed 10%, prompting 77% of owners to report profit hits. A $30 hike would amplify this 2–3x.
Limited Ability to Pass Costs to Customers
- Restaurants often raise menu prices to offset wage hikes, but fast-casual thrives on affordability and impulse buys. A $12 burger jumping to $18–$22 (to maintain margins) could slash demand by 10–20%, as low- and middle-income customers (who make up 60%+ of eaters) cut back.
- Morfogen warns: “There won’t be any more diners for $25 a person if a $12 burger goes up to $22.” Studies show a 10% wage increase leads to 0.36% higher prices in low-wage sectors like fast food, but [an almost 50% increase to] $30, pass-through could hit 20–30% on menus, pricing out core patrons.
Job and Hour Reductions to Cut Headcount
To cope, owners may reduce staff or hours, especially for entry-level roles like cashiers or prep cooks. Economic models suggest a $30 wage (near NYC’s $40 median) could compress wages across half the workforce, leading to 5–15% employment drops in retail/hospitality.
Young and low-skill workers—disproportionately in fast-casual—face the brunt: Teens might see hours cut from 20/week to 12, limiting experience and future earnings.
Acceleration of Automation and Model Shifts
- Higher wages make tech investments more viable. Self-order kiosks, AI-driven inventory, or delivery apps could replace 20–30% of frontline jobs, as seen in California after its [government mandated raise to] $20 fast-food wage. This shifts fast-casual toward “ghost kitchens” or automated chains, but small independents like Morfogen’s can’t afford the $50,000+ upfront costs.
- …Critics predict an exodus of entrepreneurs to lower-wage cities like Miami, where Morfogen is expanding instead.
Resources
Read two commentaries by economist Thomas Sowell:
Watch a November 9, 2025 segment from Sky News Australia:
Daily “Answers” emails are provided for Daily News Articles, Tuesday’s World Events and Friday’s News Quiz.
