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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Brennan restaurant Palace Café abruptly closes in New Orleans after 34 years. Here’s why. https://t.co/4kaYS8MBKn
— Where NOLA Eats (@WhereNOLAEats) July 7, 2025
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.
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…