Famed NYC Restaurateur Stratis Morfogen Cancels Three New Restaurant Openings After Mayor-Elect Zohran Mamdani’s Progressive Victory — “I’m Not Signing”
A prominent New York City restaurateur has announced that he is pulling the plug on three major restaurant projects, citing fears over the city’s economic future following the election of Mayor-elect Zohran Mamdani. The decision by Stratis Morfogen — a well-known figure in the city’s dining scene — has sent ripples through the hospitality industry, underscoring a deepening divide between business owners and the city’s incoming progressive leadership.
In an interview with The New York Post, Morfogen said he waited until after the election before making his final decision on several new leases. “I waited for the election before signing,” he said. “And now I’m not signing.” The restaurateur, known for his outspoken views and successful dining ventures across Manhattan, said he had been preparing to open three new restaurants — including one in Midtown West and another on the Upper East Side. But after Mamdani’s victory, he decided to halt expansion altogether.
The timing of his decision speaks volumes about the growing anxiety among small-business owners in the city. Mamdani, a Democratic Socialist who ran on a platform of economic reform, rent control expansion, and a $30 minimum wage by 2030, swept into office with strong support from working-class voters and progressive activists. His victory marked one of the most dramatic shifts in the city’s political landscape in decades — and for some in the private sector, it was a signal of tougher times ahead.
Morfogen didn’t mince words when explaining his reasoning. “I love New York City. I’ve built my whole life here,” he said. “But this is not the New York my father knew. You can’t open new businesses in a city that’s going to punish the people who actually employ others.” He went on to describe the decision as painful but necessary, arguing that the new administration’s policies would make restaurant ownership “financially impossible” for small operators.
The restaurateur has long been a vocal critic of policies he says favor political optics over economic reality. In his statement, he warned that new wage mandates and labor regulations could push costs so high that dining out would become unaffordable for average New Yorkers. “When a burger goes from $12 to $22, that’s not luxury dining — that’s just survival,” he said.
Morfogen, who owns several established eateries in Manhattan, including his 24-hour Gramercy Park diner, said he has no plans to sell or close existing restaurants. However, he confirmed that all future expansion projects in New York are now on indefinite hold. Instead, he plans to redirect his business investments to other states — particularly Florida, where he’s already exploring opportunities in Miami’s fast-growing dining market. “They’re open for business there,” he noted. “New York isn’t.”
The announcement comes at a time when the city’s restaurant industry is already facing immense pressure from inflation, rising rents, and labor shortages. Many small-business owners say the added uncertainty of new government regulation could be a breaking point. “We’ve barely recovered from the pandemic,” one Manhattan restaurateur told Side Dish. “Now we’re staring down another wave of policy experiments.”
Mayor-elect Zohran Mamdani, 32, has yet to respond directly to Morfogen’s comments. His campaign, however, was built around a vision of reducing inequality, expanding tenant protections, and reshaping New York into what he called a “people-first city.” A longtime community organizer and state assemblyman before his mayoral victory, Mamdani promised sweeping changes to policing, public housing, and workers’ rights. To his supporters, the backlash from wealthy business owners is proof that real change is finally on the horizon.
“Zohran represents a new kind of New York,” one of his campaign staffers said on election night. “If powerful people are uncomfortable, that’s a sign we’re doing something right.”
Yet Morfogen insists this isn’t about politics — it’s about survival. “I’m not anti-worker,” he said. “I’m pro-worker. But when you create an environment that destroys small businesses, you’re destroying jobs. It’s that simple.” His remarks echoed the concerns of several industry groups, including the New York Hospitality Alliance, which has warned that a $30 minimum wage could trigger a wave of closures across the five boroughs.
Mamdani’s supporters counter that such claims are exaggerated, arguing that fair wages and safer workplaces will strengthen the city’s economy in the long run. But for entrepreneurs like Morfogen, the uncertainty is enough to freeze future investments. “You can’t build in a city where you don’t know what the rules will be next year,” he said.
His frustration extends beyond wages. He cited crime, taxes, and what he described as “a breakdown in public safety” as additional reasons for withdrawing. “I’ve had employees assaulted outside their jobs,” he claimed. “And when the mayor-elect talks about reducing police presence, that’s a problem.”
Morfogen’s comments quickly drew both criticism and support online. Some hailed him as a truth-teller standing up for small businesses, while others accused him of fear-mongering and overreaction. On social media, progressive activists mocked his decision, suggesting that “billionaires throwing tantrums” would not sway the city’s direction. Others, including several restaurant owners, privately admitted they shared his concerns but lacked the financial flexibility to walk away.
Industry experts note that while Morfogen’s move may not start a mass exodus, it could influence investor sentiment. “When someone like Stratis pulls out, it sends a message to developers and financiers,” one hospitality consultant told The Post. “It doesn’t take hundreds of exits to change the tone — just a few visible ones.”
Meanwhile, others in the restaurant business are doubling down. Mark Bucher, owner of the Medium Rare restaurant chain, said he remains “bullish on New York City” and is proceeding with plans to open new locations next year. “This city has weathered every kind of storm,” Bucher said. “People will still go out to eat. They always have.”
That resilience, however, may depend on how quickly the city can balance Mamdani’s social agenda with the economic realities of running small businesses. Economists warn that sudden cost increases could create pressure on both prices and employment — especially in industries like hospitality that rely on low margins and high volume.
Mamdani’s rise represents a political generational shift as much as an ideological one. The son of Ugandan-Indian immigrants and a former housing advocate, he ran on an unapologetically progressive message — one that framed New York’s billionaires and developers as the root of systemic inequality. His victory speech invoked solidarity with “the city’s forgotten working class,” promising policies that would make New York “livable for everyone, not just the wealthy few.”
For Morfogen, those words may sound inspiring in theory, but in practice, he fears they spell economic disaster. “You can’t fix inequality by killing opportunity,” he said. “If small businesses leave, who’s left to employ people?”
As the city braces for a new political era, the restaurant world stands divided between hope and apprehension. For every operator ready to embrace change, there’s another preparing to cut losses or look elsewhere. Morfogen’s decision may prove symbolic — a test case for how far the city’s business leaders are willing to go to protect their interests under a progressive government.
Whether his warning becomes prophecy or cautionary tale will depend on what happens next. For now, one of New York’s loudest culinary voices has gone silent — his pen uncapped, his leases unsigned, and his future investments heading south.
