Pull to refresh
Logo
What Changed
Following Why Sign Up
Chip City closes all locations

Chip City closes all locations

Money Moves Boston, MA local

NYC cookie chain shuts down after 10 years, citing economic headwinds

October 23rd, 2026: Licence missing from 3 consecutive readings; Google marks it permanently closed

Overview

Updated Oct 25

Chip City closed its last stores on Oct. 1, telling employees by email that they were not needed the next morning. The chain, which opened its first shop in Astoria, Queens, in 2017, blamed "significant macro-economic headwinds" and said it had run out of funding.

All four Boston-area shops are shut, including 316 Newbury St. in the Back Bay, whose food licence has been off the city's active list since Oct. 20. Co-founder Peter Phillips, who left the CEO job in March, sued the company and its controlling investor, Enlightened Hospitality Investments, in September over unpaid severance. No bankruptcy filing has been reported.

Why it matters

Four Boston cookie shops are gone, the local end of a chain that raised $17.5 million and still ran out of money.

Last Monday's email for Boston, MA

Sent Nov 9. It carried:

Get next Monday's: one short email a week. Free. Unsubscribe in one click.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

24
Stores shut at the end
QNS reported the chain closed all 24 remaining locations on Oct. 1, 2026; other outlets put the number in the low 20s.
4
Boston-area locations
Back Bay, West End, Harvard Square and Arsenal Yards. All are now closed.
45
Locations a year before the collapse
Franchise Times reported the chain had 45 stores in nine states a year before it shut down.
$17.5M
Raised from Danny Meyer's fund
Enlightened Hospitality Investments put in $10 million in 2022 and $7.5 million in May 2024.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

TT
Teddy Tsim
Co-founder of Chip City
Co-founded the chain, which closed all of its stores in October 2026
PP
Peter Phillips
Co-founder and former CEO of Chip City
Left the CEO role on March 2, 2026; sued Chip City and Enlightened Hospitality Investments on Sept. 28, 2026

Organizations Involved

Chip City
Chip City
Cookie chain
Closed all locations on Oct. 1, 2026

New York cookie chain that grew from an Astoria shop to dozens of stores before closing every location in October 2026.

Timeline

March 2023 October 2026

10 events Latest: October 23rd, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Licence missing from 3 consecutive readings; Google marks it permanently closed

    Latest Closure

    The licence for 316 Newbury, dated Aug. 15, 2023 in city records, has been absent from three straight readings, and Google's listing for the address says permanently closed.

  2. Back Bay location last appears on Boston's active licence list

    Licensing

    The food establishment licence for 316 Newbury was last present on the city's active list on this date.

  3. Upper West Side shop closes as police collect evidence in reported burglary

    Closure

    The store at 370 Columbus Ave shut for good, and the NYPD evidence team arrived later that morning. Police said two people were seen on camera taking cash shortly after 2:30 a.m.; no arrests have been reported.

  4. Chip City tells staff all remaining stores will close

    Closure

    The company emailed employees that stores in New York, New Jersey and Texas would shut at the end of business Thursday, and that they were not needed Friday. QNS put the remaining count at 24.

  5. Chip City website announces closure of all locations

    Closure

    The company said it made the decision to close all stores, citing significant macro-economic headwinds.

  6. Co-founder sues Chip City over unpaid severance

    Legal

    Peter Phillips sued Chip City, Enlightened Hospitality Investments and others, saying the company stopped his transition pay and benefits in mid-September, three months before the nine-month deal ended. The suit also alleges wage theft and retaliation.

  7. Peter Phillips steps down as CEO

    Leadership

    Phillips agreed to leave the CEO role under a nine-month transition that covered salary and health benefits, according to his later lawsuit.

  8. Back Bay shop opens at 316 Newbury Street

    Expansion

    The location debuted at the corner of Newbury and Hereford Streets, joining the West End, Harvard Square, and Arsenal Yards.

  9. Enlightened Hospitality Investments adds $7.5 million

    Funding

    Danny Meyer's fund put in a $7.5 million Series B round, on top of a $10 million investment in 2022 when the chain had 14 stores.

  10. Chip City announces plans for a Back Bay Boston location

    Expansion

    The chain said it would open a shop at 316 Newbury Street, along with West End and Arsenal Yards outlets.

Scenarios

1

Chip City completes full wind-down

Likely Resolves by End of 2026

Discussed by: Company's own announcement; local food media

Chip City's website says all locations are closing. If the wind-down proceeds, every store, including the four Boston-area shops, closes by the end of 2026. The company may file for bankruptcy or simply terminate leases as they expire.

2

Chip City brand or assets sold

Possible Resolves by Q2 2027

Discussed by: Trade publications covering restaurant bankruptcies

A buyer could acquire the Chip City brand, recipes, or leases. This happened with other chains that closed, where the brand name and some locations were sold to a new operator. If a sale happens, some stores might reopen under new ownership.

3

Chip City reverses course, keeps some stores open

Unlikely Resolves by End of 2026

Discussed by: Speculation in local food media

Some chains walk back closure announcements when a location performs well or a landlord offers better terms. Chip City could keep a few profitable stores open, particularly in New York where it started. The website's current statement suggests this is unlikely.

4

Phillips's severance lawsuit ends in a settlement or judgment

Uncertain Resolves by Q2 2027

Discussed by: QNS and Franchise Times reporting on the Sept. 28 filing

Phillips says Chip City stopped paying his transition salary and health benefits in mid-September, three months before his nine-month agreement ended. The case could settle quietly or go to court; the company's closure and lack of funding complicate any payout.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

July 2024

Boston Market bankruptcy (2024)

Boston Market, the rotisserie chicken chain that once had over 1,000 locations, filed for Chapter 11 bankruptcy in July 2024. It had closed hundreds of stores in the preceding years as debt mounted and foot traffic fell.

Then

The chain closed most remaining locations and sold off assets.

Now

It became a cautionary example of a food chain that expanded too fast and couldn't sustain the economics.

Why this matters now

Like Chip City, Boston Market grew quickly then collapsed when costs rose and customers pulled back.

November 2024

TGI Fridays bankruptcy (2024)

TGI Fridays filed for Chapter 11 bankruptcy in November 2024, closing dozens of locations. The casual dining chain had struggled with debt from a leveraged buyout and changing consumer habits.

Then

The chain closed underperforming stores and restructured.

Now

It showed how a well-known brand can shrink rapidly when its business model breaks.

Why this matters now

Another example of a food brand that expanded widely then contracted sharply under financial pressure.

Sources

(6)
Chip City Boston Restaurant Talk City of Boston QNS Franchise Times West Side Rag