The Cliff House

Our 20-year concession contract expired on June 30, 2018; by that time, the National Park Service (NPS) should have selected an operator on a long-term basis to ensure the continued operation of this national treasure. Since then, the NPS has issued us one six-month and then two consecutive one-year concession contract extensions rather than proceed in a timely fashion with their responsibility to execute a new long-term contract or lease. The first step in this process was to issue a Request for Qualifications (RFQ) which they did not do until August 13, 2019 – more than a year and half after this process should have begun. Since 2018 we have negotiated in good faith with the NPS to continue our long stewardship of this iconic San Francisco Landmark including our teaming with another operator which submitted a response to the requested RFQ. Our last extension was executed on January 1, 2020 and expires on December 31, 2020. As we all know the unprecedented situation brought on by the Covid-19 Pandemic has decimated the restaurant industry. We have continued to uphold our responsibility throughout 2020 even though we have been unable to operate since March 17th. We did attempt to institute takeout service in early June but after 10 weeks could not continue to sustain the unbearable losses associated with takeout. It costs tens of thousands of dollars every month to maintain and guard the massive Cliff House building. There really is no excuse to be in this situation. There was no COVID-19 in 2018; one or more upper echelon leaders within the NPS obviously did not do their jobs, resulting in this sad situation. The NPS offered us a fourth one-year extension to continue guarding and maintaining their building with all costs to be paid for by us without any compensation whatsoever from the NPS. Unlike the government which is not held accountable for profits and losses we could not accept the additional extension as there is no possibility of doing a sustainable level o