Former “Iron Chef” Cat Cora Sues Fatbird

The operator of Manhattan's Meatpacking District restaurant "Fatbird" was sued by Chef Cora over alleged breach of contract for failing to pay her for the use of her name, likeness and recipes.

Cora, the first female Iron Chef on the Food Network’s “Iron Chef America,” said she had contracted in February with Fatbird Restaurant Group LLC and Fatbird I LLC for a 10 percent equity stake plus $400,000, but has not received her first four installment payments of $25,000 each.

Attaching a celebrity chef to a restaurant can provide notoriety and credibility, but is also expensive. New restaurants (even ones that are ultimately successful) often struggle at the beginning to turn a profit. When an establishment is working out the kinks and getting is sea legs, unless ample funds are set aside, it's a difficult time to be making these payments. Restaurateurs (and hotel owners/landlords) need to be careful in how they strucure celebrity chef deals, and the chefs need to understand the risks involved.

Celebrity chef Cat Cora sues NYC restaurant she had backed. By Jonathan Stempel. See Reuters: https://www.reuters.com/article/us-people-catcora-lawsuit/celebrity-chef-cat-cora-sues-nyc-restaurant-she-had-backed-idUSKBN1CS2QD

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