On Thursday, new rumors surfaced around the old Coffee Shop space in Union Square, a beloved late-night hangout spot that closed its doors last year. There are three stages of grief that hit when an old New York institution disappears, and it goes pretty much as follows: Anger, Speculation, Fear (of a Bank moving in). Then the New York chorus takes over, singing of unfounded rumors until eventually one of them comes true.
Slate writer Jordan Weissmann was the latest to offer up a rumor, this week tweeting: "I am hearing that the old Coffee Shop space in Union Square is being filled by an Outback Steakhouse. It gives me no pleasure to report this." The tweet caused some panic, but the rumor isn't true.
According to Cathie Koch, a spokesperson for Outback, "We do not have plans for the location." Koch added that the chain does not have plans for any more Outbacks in Manhattan aside from the one that already exists on W 23rd Street.
So what do we know about the future of the space? In June, one dreaded rumor was solidified when Vanishing NY reported that "the Office of the Comptroller of the Currency approved Chase Bank's application to establish a branch on the southwest corner 16th Street and Union Square West. The bank is rumored to take over part of what was Coffee Shop, while the rest will go to restaurants and potentially other retail..."
The other tenant will be by CHLOE, as Eater reported in August, adding that marketing material noted the "interior will pay homage to the nostalgic diner by including 'intimate round banquette seating' and 'a nod' to the restaurant’s original neon sign." Meredith Sidman, a publicist for by CHLOE, confirmed with Gothamist this morning that, "The space is divided and the other part will be a Chase Bank." (They will be opening in December.) While Eater previously reported the space would be split between four tenants, Sidman told us: "Just by CHLOE and Chase Bank are dividing the Coffee Shop space!"
The old Coffee Shop was originally a coffee shop called Chase.
When Coffee Shop opened around 1990, they replaced another coffee shop, which happened to be called Chase. They kept their neon signage, and also left the Chase coffee shop insignia emblazoned outside one of the doors, where it remains today.
