New Haven Independent

Credit Crunch Clips Ambassador

by Leonard J. Honeyman | February 9, 2009 2:30 PM | Permalink | Comments (11)

Downtown is back down to nine Indian restaurants.

Two weeks after it opened, the Ambassador of India restaurant on Temple Street in New Haven has closed, a victim of the economy, bad luck and some miscalculation by its owner.

“I miscalculated how much credit I could handle,” owner Shekhar Naik said Sunday.

Along with his New Haven location, Naik has closed two other Ambassador of India restaurants, one in Hartford this past week and his West Hartford location late last year.

Naik said he opened his New Haven location last month despite his problems because he had paid rent on the location for two years while he prepared to open. It took longer than he had planned for the previous tenant to vacate and his renovations and other preparatory work to be accomplished, he said.

Since he had so much time and money invested in the location, he opened, hoping that the business at the New Haven location would take off immediately.

It didn’t.

“I was hoping to open earlier last year, but that did not happen,” he said. He said he hopes to sell the New Haven restaurant and already has a potential buyer. He hopes that sale will bring him enough working capital to keep his Glastonbury restaurant going.

“I am trying very hard to keep this open,” he said of his Glastonbury restaurant, which he has owned since 1995. “I hope to be able to come back” to New Haven once his economic situation improves.

Naik said the recession hit his business particularly hard since he positioned his restaurants as upscale venues for an American clientele. As the economy tanked, his clients sought out less expensive alternatives, he said.

“With job losses, people are eating more pizza and sandwiches than going out and dining,” he said.

As the business diminished, he began borrowing on his credit cards to keep his business afloat. The credit crisis made it impossible for the business such as his to get credit, he said. He fell behind on his rents as his financial situation spiraled downward, forcing him to consolidate, he said.

Naik said he has been able to get jobs for his former employees, so most of them are working in other establishments.

Susan R. A. Honeyman contributed reporting for this article.

Share this story

Share |

Comments

Posted by: nfjanette | February 9, 2009 3:13 PM

The West Hartford location of Ambassador of India opened as a kosher-certified, vegetarian establishment. The building was charming but small and it was located facing a parking lot and hidden from the main street. The prices were a bit high, but the quality of the food was exceptional. It was, to my knowledge, the only kosher-certified dairy Indian restaurant in the state. When the owners decided to add meat dishes to the menu, they made a calculated risk by alienating the kosher and vegetarian patrons who will not eat in establishments that use meat. It seems that risk did not work.

In New Haven, there is one kosher-certified vegan Indian restaurant, Ahimsa, and one not kosher-certified but completely vegetarian restaurant, Thali Too.

Posted by: jeffreykerekes | February 9, 2009 3:19 PM

My favorite indian restaurant is Swagat in West Haven. They were just reviewed in the New York Times.

Posted by: TrueBlueCT | February 9, 2009 3:35 PM

Well, Len, that was quick!

I enjoyed my one lunch at the Ambassador, and I look forward to whatever comes next...

Posted by: hdavid | February 9, 2009 3:37 PM

I have been going to Swagat every Monday since a friend told me about it 3 months ago. REcently they catered a party for 40 people.

With very moderate prices and excellent food, including Masale Dosai for as little as $6 it is understandable why a restaurant pitched to a higher end clientele would have difficulties.

I hope Ambasaddor survives in Glastonbury, but I shall continue to encouage everone to try Swagat.

harry

Posted by: jackie | February 9, 2009 4:50 PM

to be honest, they didn't do a great job advertising that they were open---they were clearly working on the place for such a long tie that it was easy to ignore them. hopefully they'll have luck in the future!

Posted by: Ben Berkowitz | February 9, 2009 5:06 PM

I love Swagat as well. I have been asking John to move it to State Street for years. Sorry Westville, I know that's selfish of me but he would be a great fit for this neighborhood.

Posted by: DingDong | February 9, 2009 8:20 PM

Too bad! I hadn't even got the chance to try it out.

Posted by: East Rockette | February 9, 2009 11:08 PM

We went there on Sunday Feb 1 for a birthday lunch, only to find it closed - although it wasn't clear whether temporarily, or for good. Now we know.

Ben, having Swagat on State St would be fantastic! In the old Cafe Espresso spot, or even the Polish deli... We can dream, right?

Posted by: Alphonse Credenza | February 10, 2009 12:27 PM

I'll miss the the corned beef and curry.

Posted by: Douglas | March 5, 2009 4:43 PM

As of March 4 (probably sooner), the Glastonbury restaurant is also closed. How sad! Many of my group of friends loved that place, its wonderful food and its top-notch friendly wait staff. The Ambassador website states that all locations are now closed and thanks customers for their patronage ver the years.

Posted by: G | April 17, 2009 12:46 PM

People pls wakeup and save the economy..Small restarunts like AOI needs to be saved...Ha..I like Hawali in middletown.

Credit Crunch Clips Ambassador

Comments

Special Sections

Legal Notices

Some Favorite Sites

Government/ Community Links

Flyerboard

Sponsors

N.H.I. Site Design & Development

NHI Store

News Feed