Lines stretched around the block Sunday at the Original Saugus Cafe in Santa Clarita. It was supposed to be the restaurant's last day before closing after 139 years — making it the oldest continually operated restaurant in Los Angeles County.
But earlier this week, a sign was posted on the door saying, "Reopening under new ownership soon," although there were few details about who would be running it.
The sign was a surprise to the Mercado family, who have operated the restaurant for nearly 30 years. The family now is in a legal dispute with the Arklin family, who owns the property, about the potential re-opening and who owns the historic name.
The background
Alfredo Mercado worked his way up from bartender to restaurateur, purchasing the business in 1998. Since then Mercado and his daughters have operated the restaurant, leasing from the Arklin family. For most of that time, according to the Mercado side, the two families maintained good terms. Property owner Hank Arklin Sr., a former state assemblyman who owned other properties in the area, kept a verbal month-to-month agreement with the Mercados — no written lease required.
That changed when Arklin died in August at age 97.
New terms, failed negotiations
Larry Goodman, who manages multiple properties for the Arklin family's company, North Valley Construction, took over the landlord relationship. In September, the Mercado family say they were presented with a new written month-to-month lease.
Yecenia Ponce, Alfredo's daughter, said the new terms included various changes to the existing agreement, including a rent increase and charges for equipment.
Months of back and forth negotiations about different options, including selling the business, ultimately fell apart. Their attorney, Steffanie Stelnick, says they are being forced out, without proper legal notice, and has sent a cease-and-desist letter to Goodman saying the family has plans to continue running the business.
LAist reached out to Goodman for comment repeatedly Wednesday and Thursday by phone but did not hear back.
Goodman told The Signal, a Santa Clarita valley news outlet, that Alfredo Mercado had changed his mind several times in recent weeks about keeping the business.
“I said, ‘Fine,’ then I got out and got someone to take it over,” Goodman said.
He said he'd been in contact with Eduardo Reyna, the CEO of Dario's, a local Santa Clarita restaurant, and that the cafe could re-open as soon as Jan. 16.
Who owns what?
The dispute also focuses on who owns the rights to the Original Saugus Cafe name.
Ponce said when her father purchased the restaurant in 1998, it was called The Olde Saugus Cafe, but the name was then changed to The Original Saugus Cafe. State records show that name registered as an LLC under Alfredo Mercado.
After Arklin’s death, however, the Arklin family filed a pending trademark application to lay its own claim to the name.
The Mercado family is resisting.
"As long as they don't buy the name from us, we're not handing it over," Ponce said.
Ponce said the family had no idea the landlord planned to continue operations.
"We truly did think we were closing," she said. "We were not aware that they had plans to continue."
She apologized to customers for the confusion.
Whether the decades-old restaurant name survives — and under whose control — may ultimately be decided in court.
