(Bloomberg) -- The Loeb Boathouse restaurant and event space in Central Park, a New York City landmark and tourist favorite featured in films and TV shows from “When Harry Met Sally” to “Sex in the City,” is closing its doors after almost four decades. 

In a filing with the state Department of Labor last week, the restaurant said it plans to permanently close effective Oct. 16, citing “rising labor and costs of goods.” A total of 163 union workers will face layoffs as a result.

The restaurant, established in 1983, marks the third chapter in the building’s history. The boathouse was first built in 1872 as a wooden Victorian structure, and in 1954, philanthropist and investment banker Carl Loeb and his wife donated $305,000 (equivalent to $3.4 million in 2022) to renovate it to its current look.

“It’s definitely a big loss to the city and the restaurant landscape,” said Andrew Rigie, executive director of the New York City Hospitality Alliance. “The Loeb Boathouse is an iconic New York City restaurant and the exact type of attraction that people from around the world come to see when they visit.”

Still, the restaurant is likely to reopen in the near future. Crystal Howard, a spokesperson for the Department of Parks and Recreation, said the city is working to find a new operator “as soon as possible” and emphasized that this isn’t a permanent closure. Howard said the department hopes to accommodate patrons who have reserved the venue for large events after Oct. 16.

Across the board, the cost of goods have skyrocketed amid the highest inflation rates in four decades. The restaurant industry, which was among the hardest hit during the pandemic, was at 89% of its pre-pandemic job levels as of May, according to data from the state comptroller’s office.

‘Difficult’ Location

Dean J. Poll, the restaurant’s current operator, told The New York Times that its location and seasonality were part of what made the venue, favored for high-end weddings and corporate events, “a very difficult place to run.” Positioned on the eastern shore of Central Park Lake, the boathouse isn’t easily accessed by car.

The restaurant had previously closed for a year from March 2020 to March 2021 during the height of the pandemic, and workers faced furloughs. The latest decision to close permanently, a union spokesperson representing the boathouse’s workers said, came as a deep disappointment.

As New Yorkers wait for news of new management at the boathouse, some are lamenting the loss of a New York City institution.

“Another iconic NYC spot is closing,” Jessica Derschowitz, an NYC-based entertainment writer, wrote on Twitter. “I can’t walk past the Boathouse without immediately thinking of When Harry Met Sally.”

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