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Andy Wright

Cafe Gratitude's Legal Woes 'Resolved'


Cafe Gratitude
Cafe Gratitude's San Francisco outpost.

Café Gratitude’s legal woes stemming from lawsuits brought by former employees have been resolved—what exactly that means for any of the parties involved, they aren’t saying.

In November, Matthew and Terces Engelhart, owners of the chain of raw, vegan restaurants announced that they would shutter restaurants due to the financial strain of defending two lawsuits brought by restaurant employees that alleged illegal tip pooling and inappropriate pay designations, among other things. There are seven Café Gratitude locations in the Bay Area, including vegan Mexican restaurant Gracias Madre, and an eighth location in Los Angeles that is popular with the Hollywood set.

According to Stephen Sommers, the lawyer for former employees Sarah Stevens and Ravi Shankar, the “matter has been settled” and he is not allowed to discuss the terms.

Matthew Engelhart echoed Sommers' statement.

So, will the restaurants remain open?

“Some will close and some will stay open,” Engelhart said.

Engelhart said that he was feeling relieved following the resolution, and that looking forward, he would be focusing on business in Southern California, “where the real action is.”

Part of the contention between the two parties has always been how much money the Engelhart's and the Café Gratitude empire have at their disposal. Sommers told the Bay Citizen in November that “these are two very rich people who have a hobby”.

A statement posted on Café Gratitude’s website December 16th solicted donations for a “legal defense fund” and stated that “the plaintiff’s attorney is incredulous that there is not a pile of money somewhere to extract”. Engelhart said that even though the legal issues had been resolved, they are still accepting donations.

“Just because it’s resolved doesn’t mean we haven’t spent a whole lot of money,” he said.

Andy Wright
Andy Wright runs The Bay Citizen's Pulse of the Bay blog. Previously, Andy worked as the web editor at the SF Weekly and as the assistant culture and community editor for The Bay Citizen. A ... View Profile
Jenny Jones
Jenny Jones
wrote on 01/09/2012 at 6:24 p.m. PST

I'm happy to hear that all the cafes are not closing and I hope this is true for Gracias Madre too. But it all still seems a little shady to me. Guess they couldn't afford to defend their rightousness, but they could afford to pay off the plaintiffs. Personally, I'm not down for all the hippy dippy Landmark crap they have to offer, but I do like the food. I don't know why it's so expensive since they grow it themselves, but that's another story. It kind of creeps me out that even places that claim "Sacred Commerce" can get away with violating employment laws and it just gets resolved with "hush" money. What pisses me off is the owner saying they're going to expand in LA, "cause that's where all the action is." In other words, that's where all the profits are! I have a friend that works down their and they don't share their tips. Maybe they learned from their experience up North how not to do things down South. I kind of want to order an I Am Not in Your Cult, but have it taste like an yummy vegan chocolate milkshake.

Free Bean
Free Bean
wrote on 01/09/2012 at 8:29 p.m. PST

Jenny Jones it sounds like your swimming in all the negative gossip out there, yuck! must not feel good ;( Anyhoo, i'm glad you eat at Cafe Gratitude, I recommend going in with an open mind sometime, it may help you get beyond all your negative stories...IT worked for me.
I'm not hippy dippy, I just Love my life too much too waste it putting people down.

peewee herman
peewee herman
wrote on 01/10/2012 at 12:35 p.m. PST

LOL, you are SOOOOO hippy dippy just based on this comment. Namaste <-- sarcastic

St Apple
St Apple
wrote on 01/09/2012 at 8:38 p.m. PST

I never really understood what all the fuss was about CG. As a home cook and someone who buys organic produce from farmers markets and prepares my own food on a regular basis I consistently found the food & drinks at Mission CG lacking in flavor, inventiveness and originality.

I did find the hippy-dippy new age daily question nonsense a tad grating, most times I responded with "I'd be grateful if you'd take my order now" - well played CG staff for smiling through your annoyance but seriously it's a game we don't all chose to play and you'd have been well within your rights to 86 me or my ilk if you don't want the "general public" coming in.

For people getting their panties in a bunch over Landmark, it is what it is. I don't think CG were forcing anyone anymore any more than any organized religion / cult / group asks for donations or tithes etc on a regular basis.

If someone was actually fired for refusing to go to Landmark or felt they were in a hostile work environment as a result of their rejection of that philosophy - then - that would have some merit. I've only read one account of that to date Ash Ritter's in the East Bay Express August 2009.

LA & Hollywood will undoubtedly provide CG with the emotionally needy narcissists with that quick-fix instant-oatmeal self-help mentality willing to shell out 100's of dollars on mediocre organic food that comes with a smile. I hope that "clears" things up! yuck yuck!

Gimme Greens
Gimme Greens
wrote on 01/09/2012 at 9:09 p.m. PST

Dear owners, pleaaaase keep Gracias Madre open!

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