The Halal Guys will no longer open in the Ice Blocks in midtown Sacramento in light of an ongoing legal spat, developer Mike Heller said Tuesday.
“We have lost confidence in them,” Heller wrote in an email to The Sacramento Bee. “They simply have not performed. The lease was signed over 15 months ago and they have not lived up to their obligations in the lease ... eventually we came to the conclusion that the relationship wasn’t working and it was time to move on.”
The Halal Guys’ franchise group sued Ice Shop LP in October, alleging that Heller had demanded they start paying rent despite not yet establishing the building’s square footage or giving them the keys to the building. The Halal Guys had been expected to open at 1610 R St. next to Mendocino Farms as early as summer 2018.
The story was originally reported by the Sacramento Business Journal.
The Ice Blocks space was estimated at about 1,454 square feet when The Halal Guys franchisees Jason Wu and Patrick Mock signed their lease in October 2017, according to their lawsuit filed in March 2018.
Wu and Mock opened another The Halal Guys location near UC Davis’ campus in May, and one in San Mateo in December. The chain began as a New York City street cart in 1990 before spreading to more than 350 fast-casual locations open or under construction worldwide, including ones in Indonesia, Malaysia and the Philippines.
Heller plans to bring in another restaurant tenant to fill the void, he said.