Famous NYC restaurant that’s attracted Hollywood stars for decades is latest to close in struggling industry

Manhattan is officially saying goodbye to an iconic French restaurant in Midtown that is closing its doors for good as rising costs and inflation continue to plague the hospitality industry.

Located on East 52nd Street, La Grenouille has attracted a host of Hollywood A-listers since it opened in December 1962.

But Wednesday marked the end of an era.

Owner Philippe Masson announced on Instagram that he was closing the business, saying he wanted to “explore new paths and pursue other dreams,” and that “a lot of love and dedication has gone into making La Grenouille such an iconic destination.”

The luxury restaurant was born 62 years ago in the middle of winter – during a snowstorm and a newspaper strike. From that day on, it has developed a loyal following.

La Grenouille, an iconic restaurant on 52nd Street in Midtown Manhattan, is known for its old-school New York dishes and celebrity following, but it’s officially closing its doors

The restaurant was the sole survivor of a number of French restaurants that opened in New York City in the 1960s and quickly became household names in the city.

The restaurant was the sole survivor of a number of French restaurants that opened in New York City in the 1960s and quickly became household names in the city.

Since its opening in 1962, Hollywood superstars have dined at the establishment regularly. In March 2011, Blake Lively held a dinner in her honor there, hosted by Chanel

Since its opening in 1962, Hollywood superstars have dined at the establishment regularly. In March 2011, Blake Lively held a dinner in her honor there, hosted by Chanel

Frank Sinatra, Elizabeth Taylor, Mick Jagger, David Bowie, Rod Stewart, Prince, Madonna and Elton John are just a handful of stars who have added their glitz and glamour to the long-standing institution.

The red-gold ambiance, magical floral decorations and timeless dishes made the restaurant a permanent fixture in New York.

It remains the sole survivor of the many elegant French restaurants that entered the heart of Manhattan in the 1960s, cementing the city’s reputation for fine dining and luxury.

But now, all that remains of the once fantastic eatery with its mirrored walls and oil paintings is a dilapidated shed, a sad reminder of New York’s faddish food scene that is slowly dying.

Daniel Boulud, a famous Michelin-starred chef, told the New York Post: ‘La Grenouille was the benchmark of French dining with its old-world elegance, charm, cuisine and service that no other restaurant could imitate. It is so sad to see it close.’

The dining experience was one of refinement - mirrored walls, a red-gold ambiance and handmade floral arrangements added to the old-world atmosphere

The dining experience was one of refinement – mirrored walls, a red-gold ambiance and handmade floral arrangements added to the old-world atmosphere

Actress Anjelica Huston (pictured here with Wes Anderson) visits La Grenouille for a Louis Vuitton party in 2007

Actress Anjelica Huston (pictured here with Wes Anderson) visits La Grenouille for a Louis Vuitton party in 2007

Elsa Pataky and Adrien Brody also attended the Louis Vuitton celebration in 2007

Elsa Pataky and Adrien Brody also attended the Louis Vuitton celebration in 2007

Jason Schwartzman and Brady Cunningham at La Grenouille in 2007

Jason Schwartzman and Brady Cunningham at La Grenouille in 2007

Family problems, building maintenance issues and a five-month closure last year made for tough times.

But the city’s decline highlights not only the city’s highly competitive restaurant industry and the changing trends of the 21st century, but also the struggling industry nationally.

The aftermath of the pandemic, inflation and rising costs is the perfect storm for a restaurant disaster.

More than 40 bars and restaurants will close in New York City between December 2023 and January 2024, according to a New York City government report. Eater NY.

‘Something has happened to the casual, unusual restaurant,’ Grub Street reported. ‘It’s always been possible to eat out expensively in New York, and it’s always been possible, with a little ingenuity, to eat out cheaply.’

The restaurant seemed immune to the changing trends of the 21st century, retaining classic French dishes throughout the restaurant's long existence

The restaurant seemed immune to the changing trends of the 21st century, retaining classic French dishes throughout the restaurant’s long existence

Actress Kim Cattrall at a luncheon at La Grenouille in 2011

Actress Kim Cattrall at a luncheon at La Grenouille in 2011

Events and private dinners were common ā€“ including a celebration of the women's brain health initiative in 2019

Events and private dinners were common ā€“ including a celebration of the women’s brain health initiative in 2019

ā€œIt is now difficult, if not impossible, to make it on less than $100 per person.ā€

People who go out to eat on occasions like anniversaries and birthdays need to rethink their decisions. The obvious culprit is inflation.

Insurance, rent, renovations, material costs and Covid have created a new normal for a once vibrant sector.

While restaurants were in low demand during the shutdown, menu prices rose. When it was no longer considered a national emergency, costs rose as people started eating out again.

But as time passed and other expenses decreased, menu prices did not change.

“The view from inside the industry is not that prices are too high now,” one industry veteran told Grub Street. “It’s that they were too low before.”

ā€œThe industry was really financially unhealthy, pre-COVID. Things were at a breaking point.ā€

Spanish racing driver Alfonso de Portago's daughter Andrea and famed interior designer Kitty Hawks were photographed in short skirts outside the iconic New York restaurant

Spanish racing driver Alfonso de Portago’s daughter Andrea and famed interior designer Kitty Hawks were photographed in short skirts outside the iconic New York restaurant

High prices are normal: you can expect to spend at least $180 when dining at La Grenouille

High prices are normal: you can expect to spend at least $180 when dining at La Grenouille

But in a city where it would cost someone more than one 22 years to eat in every restaurant, the dire industry is more pronounced in other parts of the country.

In the middle of America, where populations are smaller and family incomes are lower, almost all restaurants are experiencing the pressure of empty seats.

Jessica Dunker, president and CEO of the Iowa Restaurant Association, said restaurants are closing because the cost of produce has increased by 30 percent and they have to pay higher wages to retain employees.

Dunker also pointed out that many food businesses are struggling to repay loans they took out during the pandemic.

A total of 1,932 restaurants went bankrupt in 2023, an increase of 45 percent compared to the previous year, according to Restaurant Online.

And there will likely be many more closures to come.