And the first drink ordered: a cactus-pear margarita on the rocks ...
• It's official: San Loco is returning to the East Village
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We are heartbroken to announce that we are closing our 2nd Ave location due to a rent increase that is unsustainable. Tomorrow, June 20th will be our last day of business. Our other #sanloco locations will remain open so please come visit us. Thank you 2nd avenue for 30+ years, we will surely miss you.
There are many factors that contribute to our struggle to survive — and the noose definitely keeps tightening. Our customer base has been mostly squeezed out of this neighborhood as a consequence of hyper-gentrification. Rent is a constant source of stress. In our case, as with many long-standing businesses, we are at the mercy of the landlord and live in fear of our next rent renewal.
They can raise your rent exponentially to just force you out, or they can charge you above market because they know moving is not a viable option. For example, one of our location's lease is up in the spring, we have been tenants there for 20 years, but still they are asking about 15-20% above the comps around us because they know moving is expensive, disruptive, and can cost us our liquor license (although San Loco obtained the liquor license it stays with the address). And regardless of our good standing with the community board, we could be denied a new license, or most likely, be given one with limitations. There are moratoriums on most blocks now because of the over saturation of restaurants/bars in the neighborhood.
We love the East Village and specifically Avenue A. But if we aren't wanted there, we get it. Unfortunately for those who think they've done a great thing by preventing another restaurant or bar from opening there, they will discover that the rent is too high for a barber shop or frozen yogurt store, so a bar or another taco shop will most likely take this space.
It's also worth noting that in the past, they have gone through the process of applying for liquor licenses many times without actually committing to the spaces they were eyeing.