Central Park Smackdown Over Tavern On The Green

It is a fate that has befallen so many businesses in these hard times that it is not even news anymore: Another restaurant is closing its doors on December 31. But this isn't just any restaurant, it is New York City's revered Tavern on the Green, a Central Park landmark since 1934.

The restaurant declared bankruptcy in September and its one-of-a-kind furnishings and collectibles -- chandeliers, murals, weathervanes, and more --  will be auctioned off in mid-January. But here's the interesting part of the story: the brand could live on if the family of owner Warner LeRoy, who died in 2001, wins a trademark fight with the city of New York.

Both the LeRoy family and New York recognize the brand value of the name "Tavern on the Green," which is already in use on cooking oils, gift items, and restaurant memorabilia. That's why the LeRoy family has engaged Streambank LLC, an advisory firm that deals in intellectual property.

Granted, Tavern on the Green is associated with its single Central Park location, but "similar spaces in beautiful settings in a convenient location exist in most cities," says Gabe Fried, Streambank's chief executive. "One of the hardest things in launching new restaurant concepts is building brand awareness, and it takes an enormous amount of advertising to put your brand at the top of mind," Fried says. "Given the wide recognition of the name there is opportunity for some kind of franchise model."

These lofty goals may go nowhere unless the LeRoy family prevails in federal court. It's an intriguing battle: New York says it has the right to use the trademark because of the name given to the restaurant back in 1934.The LeRoy family argues, however, that it filed an original trademark as recently as 1981, and that the family has had to legally defend that trademark against other restaurants that attempted to use it.

The stakes are considerable. The name "Tavern on the Green" has already been valued at $19 million by an outside firm. That value could be dwarfed, of course, by any naming rights deals negotiated by Streambank. New York City, meanwhile, has engaged a new licensee for the restaurant, which would re-open as a completely new establishment. If the city loses the trademark fight, it may try to rechristen the place "Tavern in the Park."

Just doesn't have the same ring as "Tavern on the Green," does it? Nor will it have the same brand equity and earning potential.