By Chloe founder Chloe Coscarelli opens a new restaurant years after forced exit from her companyBy Chloe founder Chloe Coscarelli opens a new restaurant years after forced exit from her company

Joanna Fantozzi

Chloe Coscarelli — the chef and founder of By Chloe, the vegan New York City chain that now operates under new ownership with the name Beatnic — is back. 

Six years after a legal battle between Coscarelli and her former parent company, ESquared Hospitality LLC, in which she blamed her forced exit on her rejection of advances from CEO James Haber, Coscarelli is opening a new vegan restaurant in New York City.

News of the grand opening of Coscarelli’s new vegan restaurant, CHLOE, was announced on her Instagram page this week. CHLOE is located at 185 Bleecker St. in Greenwich Village, the same corner where the By Chloe brand was started in 2014.

“As many of you know, my former restaurant By Chloe was co-opted by a deceitful partner in 2017,” Coscarelli begins her Instagram announcement. “It was an abrupt halt to what had otherwise been a magical experience. I still remember leaving our flagship store for the last time and feeling an overwhelming sense of unease. It didn’t seem right to mourn the end when I knew, deep down, that I had only just begun. Standing on the corner of Bleecker and MacDougal, I promised myself that someday, somehow, I would return. And when I did, it would be on my own terms.”

By Chloe was founded in 2014 by Coscarelli and ESquared Hospitality — which includes CEO James Haber and his daughter Samantha Wasser. The popular vegan fast-casual chain was quickly expanded to other locations in New York City, as well as Boston and Los Angeles. In 2016, ESquared entered arbitration with the goal of cutting all ties with Coscarelli, with Haber claiming she “did not negotiate in good faith” when they were looking to expand the concept. Then, ESquared acquired Coscarelli’s 50% stake in the company and the name of the company was changed to BC Hospitality Group LLC.

Related:By Chloe announces new name: Beatnic

In 2017, an arbitrator ruled in favor of ESquared Hospitality, and Coscarelli left the business. The following year, Coscarelli filed a trademark infringement lawsuit against ESquared Hospitalityand, in the complaint, claimed that she was pushed out after she rejected advances by Haber, though the complaint did not include sexual harassment charges.

In December 2020, amid years of legal challenges between both parties, By Chloe filed for Chapter 11 bankruptcy protection, and Haber stepped down as CEO. At the time, Coscarelli still had an ongoing lawsuit against the company with intent to continue “vigorously pursuing [her] claims.” In early 2021, a group of investors acquired By Chloe out of bankruptcy, although the court ruled that the By Chloe name was not allowed to be included in the sale, bringing the years-long trademark battle to an end.

Related:Investors agree to acquire By Chloe vegan restaurant chain from bankruptcy

A few months later, the brand — which had shrunk from 14 locations to five — was renamed Beatnic as a nod to the “beatnik” cultural movement of the mid-20^th century that had a major hub in Greenwich Village. In December 2023, the brand was sold again—this time to fast-casual chain Inday – with plans to convert all remaining Beatnic locations to Indays by this summer.

Although full details are not yet available about the new restaurant, Coscarelli described the vegan spot as an “an all-day café serving classic eats with thoughtfully sourced ingredients,” and, according to the website, Chloe on Bleecker is open Tuesday through Sunday, from noon to 9 p.m. Website photos showcase vegan sweets like cakes, cookies, and cupcakes, while reviews of the spot mention “vegan burgers, nachos, salads, coffees, meatball subs, and mac & cheese,” alongside “cinnamon rolls that will change your life.”

“There are no words to express how grateful I am for this incredible opportunity and the amazing team who has helped turn this dream into a reality,” Coscarelli continued in her Instagram post. “We’ve been working around the clock to create a truly special place that I hope will become one of your favorite neighborhood spots.”

Contact Joanna at [email protected]