Tag: Leaves

Aya Pastry was a rare pandemic success story. While Chicagoans anxiously navigated the early days of COVID, the desire for comfort foods increased, and baker Aya Fukai — who rose through Chicago’s culinary ranks using her imagination and creativity as pastry chef at highly profitable Gold Coast hot spot Maple & Ash — was there with her baked goods: Fukai took inspiration from a variety of sources, including Girl Scout Cookies, which pushed her to create a supercharged doughnut, a decadent treat that looks like a Samoa cookie. Coffeehouses around town turned to Aya to supply pastries, and the bakery’s wholesale operation boomed, counting more than 50 clients including large grocery stores like Dom’s Kitchen & Market and independent coffee shops like Gaslight Coffee Roasters.

But behind the scenes, Fukai wasn’t exactly enjoying her tremendous success. She quietly left the bakery in October. Fukai’s exit came just 10 months after her backers at What If Syndicate dissolved the company. What If co-founder David Pisor brought Aya Pastry under his newly formed entity, Etta Collective.

Few knew about Fukai’s exit, as her name remained on the signs. She says that her deal to sell her 51 percent stake in the bakery for $700,000 closed on October 3. Meanwhile, Pisor told Eater on January 17 that she was still with the bakery.

Aya Pastry is just one of the dominoes to fall in Pisor’s restaurant empire, an empire that at one point consisted of five restaurants in three states. In the past month, Pisor closed the River North location of Etta and filed Chapter 11 bankruptcy papers for Etta Collective and Etta River North. On the same day, Thursday, February 1, his attorney made two more bankruptcy filings — one for Etta Bucktown and another for Aya Pastry. The Aya filing revealed Pisor owed $500,000 to Fukai (she received $200,000 upon closing, it went mostly to attorneys fees, she says). A fifth filing had been made on January 18 involving Etta in Scottsdale, Arizona. There are also reports of a $2.5 million loan defaulting and eviction orders, according to Crain’s. The Chapter 11 filings would allow the businesses to continue, and although messaging directed to customers indicate that things are business as usual, questions remain about Etta’s future. Also, plans for a suburban Etta location in Evanston are on hold, Pisor confirms.

Barry Brecheisen/Eater Chicago

“Our aim is to best position the Etta brand for future success,” a statement provided to Eater from Pisor and his reps reads. “By filing for protection under Chapter 11, we will be able to restructure our financial position while continuing our daily operations and keeping our locations open. As has already happened in our Scottsdale location, we predict that we will emerge stronger both operationally and financially.”

Former workers have been calling out Etta Collective for months, alleging that the company left them without health care. Their final paychecks also arrived two days late. Fukai, along with 11 former Etta employees — servers, bartenders, and operations staff — from River North and Bucktown provide an inside look into the seeming slow-rolling collapse of a national restaurant group. Etta’s Chicago workers saw warning signs of the downfall in August when Etta Collective narrowly dodged eviction at its Culver City location and laid off 10 workers including a handful at the corporate level. The cost-cutting continued as nine Etta River North workers claimed that they saw lapses in their health care coverage despite having premiums deducted from their paychecks. They accuse Pisor and management of allegedly misleading customers about the distribution of a 3.5 percent staff benefits fee added to customer checks. Most have requested their names be kept out of the story for fear of being labeled as outspoken as they search for new hospitality jobs. Some say they are worried about becoming a target of what they describe as Pisor’s litigious temperament.

After the settlement, Pisor quickly touted the arrivals of three forthcoming restaurants in an afternoon interview with Eater on January 22 — Etta Evanston, Etta Dallas, and a yet-to-be-announced Downtown Chicago steakhouse. Yet the bankruptcy filings include a list of unpaid vendors across sectors — restaurant, health care, and construction — that may put the three projects in jeopardy. Familiar names like Slagel Family Farm, Sysco, Kilgus Farmstead, and Supreme Lobster are owed thousands of dollars, according to these filings.

“He’s got open tabs all around the city,” alleges a source who works in construction and design.

In a written response about money owed to vendors, Pisor writes that Etta filed for Chapter 11 in part to ensure day-to-day operations to restructure and “work to resolve those payments.”

Etta Collective’s decline comes in the aftermath of a split between Pisor and former business partner Jim Lasky following a legal battle that started in March 2022. The two opened Maple & Ash, in 2015 in Chicago’s Gold Coast. They went on to form What If Syndicate and opened a Maple & Ash in Scottsdale. However, along the way, Lasky and Pisor’s relationship became strained, according to court documents. In January 2023, the pair agreed to split What If into two companies. Pisor formed Etta Collective, taking Etta restaurants in River North and Bucktown, Aya Pastry, and Cafe Sophie in Gold Coast. Lasky formed Maple Hospitality Group, taking Maple & Ash, one of the highest-grossing restaurants in the country, according to Restaurant Business Online.

Pisor’s employees in this new company, Etta Collective, say the split was an unwelcome change. Fukai alleges it was made without her knowledge or input, despite her being the majority owner of Aya Pastry. Though she’s come to terms with leaving the business that bears her name, she is considering pursuing legal action against Pisor after seeing the bankruptcy filing.

Many other former employees believe they would still be employed under different leadership.

“Pisor was the only thing wrong with that company,” former Etta River North server Drew Riebhoff alleges of Etta Collective.

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Pisor earned a reputation as a developer with big ideas. As a restaurateur, he relished creating lavish dining rooms. Before Maple & Ash, he served as the chief executive officer of Elysian Hotels and was a prolific real estate developer. In 2015, Lasky and Pisor founded Maple & Ash. Building on the success of that first steakhouse, the partners, along with executive chef and Elysian alum Danny Grant, opened a second location four years later in Scottsdale, Arizona.

Maple & Ash brought a brasher attitude compared to traditional steakhouses. It had to, as it takes guts to open a steakhouse on the perimeter of what Chicagoans have nicknamed “the Viagra Triangle,” with Morton’s and Gibsons already surrounding Mariano Park. Pisor and Lasky debuted a new brand centered on one of the trends of the moment: kitchens with wood-fired hearths.

An approach that mixed fine dining with approachable irreverence earned Maple & Ash national attention; then-Eater critic Bill Addison hailed the team for its embrace of​​ “the steakhouse motif with unfettered playfulness.” Addison continued, “[Grant] oversees a 12-foot hearth that breathes fire over rows of steaks, as well as a coal-burning oven that produces the kitchen’s greatest stroke of genius: a seafood tower of roasted shrimp, oysters, lobster, Alaskan King Crab legs, and other oceanic treasures, kissing the shellfish with smoke and concentrating their flavors.”

When Etta Bucktown, a more casual restaurant than Maple & Ash, opened in 2018, customers soon made it one of the hottest tables in town, too. A prototypical neighborhood restaurant and easily scaled, a second Etta soon opened in River North with a third following in Culver City, California.

But the partnership reached a breaking point during the pandemic. Maple & Ash became caught up in a scandal over vaccinations earmarked for a safety net hospital on Chicago’s West Side. A Maple & Ash regular, the former chief operating officer of Loretto Hospital, broke protocol and secured a supply of COVID vaccines for the steakhouse’s staff. While all of this was going on, restaurants across the country fought for every dollar and applied for PPP funds, and staff donned masks to keep safe. Pisor and Lasky’s relationship continued to erode.

Barry Brecheisen/Eater Chicago

A lawsuit filed by Pisor in April 2022 alleged that Lasky and Grant were freezing him out of the company. A counter-lawsuit accused Pisor of allegedly showing up to a female employee’s house late at night unannounced. Rumors began to circulate on both sides, but before the powder keg could explode, Pisor and Lasky agreed to a settlement in January 2023, splitting the company and keeping any other stories away from the public eye.

Today, Pisor’s empire appears in shambles, and his former business partner at Maple & Ash, Lasky, is defending allegations of PPP fraud levied by restaurant investors. The claims of PPP abuse were used as punchlines during the 2024 Jean Banchet Awards, which recognizes local chefs and restaurants. On stage in January, host Michael Muser, a co-owner of two-Michelin-starred Ever, joked about the alleged purchase of a private jet using taxpayer funds that were supposed to benefit employees. But Maple & Ash’s reputation and brand, at least in the eyes of customers, remains strong. The steakhouse continues to attract crowds in Gold Coast and Scottsdale.

Maple & Ash’s owners declined to comment for this story.

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Pisor had big plans in 2023 after breaking away from Lasky. In March, he hired a pair of big names with Michelin-star resumes. Alinea Group alum Dan Perretta served as a partner and executive chef. He brought over Micah Melton, the former beverage director of the Aviary — the upscale cocktail lounge operated by Alinea. Buoyed by a fresh start and new personnel, Pisor teased expansion through a series of media announcements in the spring and early summer. But by August, Melton was laid off and Perretta had quit, allegedly in protest of the layoffs.

For service staff, Etta looked like a great place to work from the outside. The company’s promise to pay 70 percent of medical expenses for employees was particularly attractive. But after those August layoffs — which included firing managers who handled payroll — Etta workers allege that they received mixed messages from management regarding their paychecks and benefits. One ex-employee claims he was told by a manager that Etta had underpaid him in August and that he would receive the missing amount in the next week’s paycheck. When the following payday arrived, he claims he was told he owed money to the restaurant because he was overpaid. Complicating matters, according to workers, was an alleged lapse in dental and vision coverage between July 31 and December 5. Eater reviewed emails from insurance provider Guardian and Etta that backed the claim.

As River North workers questioned Pisor, Etta’s Culver City location closed at the end of December.

“It was just becoming this big, big process of confusion and lies,” a former River North worker alleges.

In an interview from January and a written statement, Pisor denies any lapses, claiming Etta provided “same-day reimbursement checks” and payments before appointments.

Eater has reviewed worker pay stubs from January 2024 showing the deductions (around $15.56 bimonthly for dental and $67.14 for health insurance for employees without dependents). Another worker tells Eater that their dentist told them their “insurance was no longer active.” They claim management never bothered to tell workers.

“I got a call from my dentist for like $500 because they said that they canceled our insurance in August, but we had still been paying premiums since then,” that same worker says. “And that has been taken out of our checks.”

Similarly, Etta server Riebhoff received a letter dated December 12 from Guardian stating dental coverage had been terminated on July 31 before coverage was reinstated. Workers pushed back during a December pre-shift meeting and benefits were restored retroactively to August. Management allegedly told workers they would be reimbursed for any out-of-pocket health care expenses incurred during the lapse in coverage.

“All employees who attended their appointments and submitted a claim to us received a manual check reimbursement from us directly out of pocket, as we did not want any employee to have to fund their own vision and dental appointments while the billing dispute was still being resolved,” Pisor responded.

In January, Pisor told Eater that the health care concerns were not as widespread as alleged by employees, attributing the claim to just one outspoken worker complaining. However, Eater spoke with eight other employees who shared similar concerns about dental and vision coverage. Pisor added that Etta was in a dispute with Guardian, saying the insurance company overcharged Etta following its August layoffs.

Guardian does not appear on the restaurant’s bankruptcy filing as one of the vendors to whom Etta River North owes money. In a statement, Pisor writes that Etta and Guardian agreed to a payment plan in mid-December after receiving a notice on December 7 from Guardian, giving Etta its 30-day notice that it would discontinue coverage due to nonpayment. However, a $10,042.39 debt to United Healthcare appears on the Etta Collective filing.

Workers want to know what their deductions were spent on. They also received notice of open enrollment going from December 20 to December 29, 2023. An email sent to workers dated December 29, 2023, announced that the dispute with Guardian had been settled. A representative from Etta’s dental and vision provider, Guardian, declined most questions but did say that Etta is no longer a client.

Etta also tacked on a 3.5 percent fee for customers, presenting it as a payment for “staff benefits.” Workers claim that’s not the case and allege the money goes toward credit card processing fees.

“We were required through management to tell people that that was to go toward our health care,” a former Etta worker alleges.

Pisor’s statement denies this claim, saying the charge is meant to cover health care: “We do not offer discounts for cash, nor do we communicate with customers in that manner.”

Multiple former workers, including Riebhoff, allege that they were told by managers that “if [customers are] paying with cash, we take that service charge off.”

Riebhoff continues, “Yep, I guess if you pay cash, you don’t have to help people with insurance.”

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Former Etta workers claim pettiness played a role in the company’s fall, citing numerous instances of Pisor’s hubris. A former employee says they believe “it would be thriving” and alleges that Pisor “completely gutted the restaurant of all of its heart and soul.”

The menu changed so much that regular customers couldn’t recognize the restaurant they once enjoyed; management removed popular items like oysters, ricotta pillows, and fire pie. “They just didn’t want anything that Danny [Grant] created on our menu,” Riebhoff says.

A manager allegedly told Riebhoff that the decision to remove specific dishes was a reaction to the loss of chef Grant after What If’s split. Pisor dismissed that conclusion as untrue speculation, saying while dishes change due to seasonality, the classics remain. In addition, three workers and a source familiar with operations say that to underscore that feeling, someone had defaced a photo of Grant at Etta Bucktown, drawing a penis on the picture.

“That’s how petty that they were about the Danny Grant situation,” a former worker says. “And that’s up at the restaurant for employees to see and walk past every day.”

Barry Brecheisen/Eater Chicago

Pisor writes, “to the best of my knowledge, there’s no photo of Danny Grant in the restaurant with graffiti on it” and that “if I had been aware of any such photo, I would have had it removed and made sure we addressed that issue with staff immediately.”

Grant declined a request for comment.

A source familiar with Etta’s operations says they were stunned by how quickly the chain’s financials soured right after the split with Lasky in January 2023. That source claims Pisor didn’t realize that restaurants in Chicago slow down in the winter months and make the majority of money after March. Part of the reason, the source alleges, was that Pisor didn’t make any adjustments to his lifestyle, thinking he could live his life as if he was still a co-owner of Maple & Ash, which reported $32 million in sales in 2023. He wanted badly to see Etta succeed on the national level but Etta wasn’t ready to expand that quickly at that scale, the source says.

Pride also seems to have fueled Pisor’s desire to open another steakhouse — showing Grant and Lasky that he could exceed the success of Maple & Ash without them. Pisor had an opportunity to partner on a new restaurant at One Illinois Center. Maple & Ash’s reputation impressed the project’s owner who sought to replicate that success. But in the wake of the bankruptcy filings and eviction notes, the project owner confirms they have severed ties with Pisor. They declined further comment, stating they didn’t want their name in the story and didn’t want anything to do with Pisor. Two other sources allege that the owner was continually embarrassed by Pisor’s recent headlines.

Engineers, architects, and management companies haven’t been paid for a $5 million project that includes a new Etta in Evanston. Construction was supposed to start there in mid-February, but parties are pulling out of the project: “As far as right now, that project is dead,” a construction source says.

Pisor described Evanston as “on hold” and that Etta Collective’s focus is on restructuring.

Pisor’s attitude toward flipping the page in teasing new projects without facing accountability irked his former employees. The day he closed Etta River North, Pisor told Eater Chicago he had worked out a deal with his landlord to open a new restaurant in the space.

“When he said he was going to open a new restaurant in that space, that was a bit infuriating for me,” a former worker says. “Because if that is the case, why were we not informed about this and given the option to maybe pursue a future with the company?”

As the bankruptcies get sorted, there are parties interested in buying Etta from Pisor. Court documents identified John Leahy, who owns Lulu’s in Waikiki, Hawai’i, as a stalking horse investor. “He is a long-time colleague who is interested in helping us restructure and emerge stronger from this bankruptcy,” according to Pisor. “Each entity is being restructured so that we can emerge stronger from the filing. We’re excited to start growing again once we come out the other side of this.”

While Pisor talks expansion, grassroots campaigns from restaurant workers, including the activists at the CHAAD Project, have mounted with a goal of alerting members of the hospitality industry of Pisor and Etta Collective’s reputation.

Pisor writes that he’s unaware of such campaigns and feels Etta treats workers well: “​​We take very good care of them, and we have employees who have been with us for five years. We’re very proud of the team we’ve built.”

That’s contrary to Riebhoff’s frustrations which have built for months.

“In the court documents for the Scottsdale bankruptcy, there is a quote from him saying, ‘I want to keep this place open so I don’t negatively impact my employees there,’” Riebhoff says. “Meanwhile, he closes Etta River North two hours before our shift with no communication whatsoever. I fucking worked for Lettuce [Entertain You Enterprises] during COVID, and R.J. Melman called us to tell us about it — everyone. So for him to just like not acknowledge it at all, to have zero sympathy or empathy, is fucking disgusting.”

Etta River North remains closed even though lights are turned on and tables set as though the restaurant is ready to serve customers. On the morning of Wednesday, February 7, Rieboff was greeted by the sound of 30 or so text messages. He wasn’t surprised with what he read. He and his former coworkers were supposed to receive their last paycheck from Etta, but the payments didn’t come through. So he and four former workers gathered that afternoon outside Etta Bucktown with signs to protest.

“A lot of industry people live check by check, where’s their money?” they yelled. “They have new concepts even though they’re broke!”

Eater reviewed a text from Rieboff to Etta Bucktown manager Max Ostrowski asking about the status of the paychecks. Ostrowski replied that payment should pop up in 24 to 48 hours, “but if Bucktown gets shut down [because] of protest, then the courts could shut us down and we can’t pay anyone and it would be tied up in courts for months.”

That night, Pisor sent out an email to those former workers, writing that “this payment delay was not expected, the court has approved payment, and we anticipate that the funding process will only take a few days.”

On the afternoon of Friday, February 9, Rieboff told Eater that he received his payment and that he was shocked that no insurance premiums were deducted from his paycheck.

As news spread about Aya Pastry’s bankruptcy on Tuesday, February 13, Pisor’s teams sent out an email newsletter to the bakery’s customers: “Aya continues to operate and add new clients to our roster. What does this mean for you, our valued patrons? Operations as usual. We remain dedicated to producing great breads, cakes and pastries that you’ve come to expect, and our day-to-day operations will continue without interruption.”

A similar email was also sent to Etta Bucktown’s customers, a message that addressed the protest earlier in the week, reassuring potential diners that payments were “sent less than 36 hours after they were due” and that management was “filled with optimism about the future.”

Neither message included any mention of Fukai’s departure. When reached, Fukai, who had already seen the Aya Pastry email, said she felt the message “seemed misleading.” Pisor, in a statement, writes that Etta Collective promoted a worker who had been with the bakery for four and a half years to lead Aya Pastry.

Fukai, who already received $200,000 of Aya’s $700,000 sale price from Pisor, wonders if she’ll see the remainder after five years of building the bakery. She empathizes with Rieboff and Etta’s other workers. Though she’s had since October to extricate herself from the bakery, she needs a reset.

“I’ve been working so hard, and I had so many responsibilities, so I’m taking a little break,” Fukai says.