Famiglia's Original Upper West Side Location Sued Over Unpaid Rent

UPPER WEST SIDE, NY — Famous Famiglia, one of the Upper West Side's most popular pizzerias, is being sued for over $50,000 in unpaid rent, according to court records and the pizza shop's owner.

The landlord of the original Famiglia at 200 W. 96th St. filed Wednesday a lawsuit demanding at least $51,905.51 in alleged unpaid rent and $7,500 more in legal fees, New York State Supreme Court records show and owner Paul Kolaj confirmed.

"This particular location, it’s something special, even more than business," Kolaj told Patch. "It is about the very start of an American Dream for my family and me."

The landlord's legal team did not immediately respond to Patch's request for comment.

Famiglia — which now has locations all over the world including a second Upper West Side eatery on West 111th Street — began on 96th Street in 1986, Kolaj said.

Those locations include abroad in Canada, Ecuador, Mexico, and Kosovo — as well as domestically in 13 states.

The business thrived and Kolaj signed multiple lease renewals with the landlord between 1992 and 2020, according to the lawsuit.

In the 2020 deal, Famiglia extended its lease to Aug. 31, 2028, according to the lawsuit.

The lawsuit does not specify when Famiglia allegedly stopped paying rent, but does say the minimum monthly rent is $24,039.99, or about half of what Kolaj's landlord says he is owed.

"That Tenant 96th Street Pizza Corp. (Famiglia) defaulted in their obligation as tenant," reads the lawsuit. "[It] breached the terms of the Lease and/or Lease Extension by failing to pay rent and additional rent due."

Kolaj admitted the past few years have presented a challenge for the pizzeria.

"It is certainly a difficult time for us, and many businesses in today's economic climate," Kolaj said. "We, unfortunately, are in a situation in which significantly increased labor and food and supply costs, combined with a very high rent burden for the location, are simply not sustainable."

Recent data on New York City's economy show Kolaj isn't the only New York City business owner facing a challenge.

The average asking retail rent in Manhattan was $97.53 per square foot in the second quarter of 2022 — which is actually in line with pre-pandemic rates — but still represents a hefty price, according to a retail report from Marcus & Millichap.

And New York food prices rose 9.1 percent as part of a wave of inflation that saw energy prices make the largest increase since 1980, according to recently released federal data.

A lot of these economic shifts are linked to the pandemic, which a new report from the Comptroller's office shows hit Manhattan businesses especially hard.

Manhattan lost 5,266 more businesses in fourth quarter of 2021 compared to the fourth quarter of 2019, according to the report.

"It won’t surprise you to learn that the largest net loss in the number of business establishments was in Manhattan," reads the report, "taking the borough below 50% of the city’s businesses for the first time."

But despite inflation, rent hikes and his landlord's legal action, Kolaj remains hopeful he can hold onto the 96th Street space where his business first thrived, he told Patch.

"Our desire and hope is that we could work out a reasonable understanding with our landlord," Kolaj said."We will do all we can on our end to achieve a positive outcome."