Legendary New Orleans Restaurant Palace Café Closes After 34 Years

NEW ORLEANS, La. (KPEL-FM) - The culinary scene in New Orleans took a hit today as longtime favorite Palace Café has closed its doors after 34 years.

A Sudden Goodbye After 34 Years on Canal Street

The restaurant, located at 605 Canal Street since 1991, abruptly closed its doors after serving the last customers on Sunday, July 7.

This came as a shock to most as the restaurant staff learned of the news on Monday. According to NOLA.com, about half of the restaurants' 60-person staff are being offered positions at other restaurants within the Dickie Brennan & Co. restaurant group (which owns Palace Café).

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Lease Dispute at the Heart of the Shutdown

The reason for the closure has to do with the fact that Palace Café is nearing the end of its 35-year lease. A purchase agreement was included in that lease, and the operators of the restaurant were working towards purchasing the property from its owners, Philip Werlein, Ltd., a company involving members of the Werlein family.

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Court Ruling Sides with Property Owner

There was a dispute about the fair market value of the property after the restaurant group made improvements to the property, and whether or not those should be included in the purchase price. The issue was brought in front of a District Court, and that judge ruled in favor of the Werlein family.

In the meantime, the ruling is being appealed. However, a representative from Dickie Brennan & Co. said it was no longer "fiscally responsible" to continue to operate the restaurant. They said the difference between the assessed values for the property is too great to purchase it, and terms of a new lease to continue operating were five times higher than the previous lease.

Possible Return or Relocation on the Table

Steve Pettus, managing partner of Dickie Brennan & Co., said reopening Palace Café at the original location is still a possibility, depending on the appeal. He also said the company is "interested in reimagining and reopening Palace Café" elsewhere should the right location arise.

“There’s a sense of loss, but things do happen for a reason, and we’re challenged to make the best of the situation we’re in,” Pettus said.

A Little History About Palace Café

As noted, the restaurant is owned by Dickie Brennan & Co. restaurant group, which at the time Palace Café was opened consisted of famed chef Dickie Brennan, his sister Lauren Brower and Steve Pettus.

The restaurant is known for its signature dishes such as crabmeat cheesecake, catfish pecan meuniere, white chocolate bread pudding, and the famed tableside-made bananas foster.

Palace Café was an early adopter of outdoor dining in the downtown area when it added a sidewalk café.

In 2015, the restaurant underwent a major overhaul, marking its 25th anniversary. Part of that makeover included a new lounge and its Black Duck Bar on the second floor.