Cease-operations order issued for 1225 Raw as owner plans to sunset it

The City of Philadelphia has ordered longtime Center City sushi haunt 1225 Raw to stop operating in January after more than 20 years on Sansom Street.

1225 Raw received an order from the Department of Revenue to cease operations by Jan. 15, according the red-and-white-striped sign that has been pasted to the front door since Dec. 14.

Cease-operation orders are traditionally issued by the Department of License and Inspections for things like unsafe and unsanitary working conditions or a lack of proper permits. The Department of Revenue intervenes when the issue is tax-related.

“The City pursues license revocation when a business is either unregistered or has a delinquent tax balance and/or unfiled returns,” said department spokesperson Christian Crespo in an emailed statement. “The posting of a revocation indicates that the business is not tax compliant, and its removal generally indicates that the business has come into compliance.”

Crespo declined to comment on the specifics of 1225 Raw’s case but noted that the restaurant — like all businesses — received at least three months’ notice to come into compliance before the order to cease operations was issued.

Former owner Tony Rim opened the sleek dimly lit sushi restaurant in 2003, drawing a reputation for an expansive happy hour and being the kind of place that can serve as a catchall for date night, dinner, or a rowdy round of drinks with your college friends. GLU Hospitality group took over 1225 Raw in 2022, combining it with the now-defunct cocktail lounge Leda & The Swan as part of a bid to rapidly expand their portfolio from nightclubs and bagel shops to sit-down restaurants and a food hall.

» READ MORE: From 2022: GLU Hospitality can’t stop, won’t stop opening new restaurants

GLU operates three other Asian concepts: Chika, a basement-level Blade Runner-inspired ramen bar; Izakaya Fishtown, a similarly swank sushi restaurant; and Sushi by Bou, a disco-themed take on omakase run out of the back of 1225 Raw and Izakaya Fishtown.

GLU Hospitality co-owner Tim Lu confirmed that the order was issued in response to delinquent city taxes that accrued while 1225 Raw was closed from July to mid-September to make room for Sushi by Bou.

“We missed the notice. We weren’t operating,” said Lu. “It fell by the wayside.”

» READ MORE: Studio 54-style ‘disco omakase’ is the theme of the new Sushi by Bou location in Center City

Lu declined to say how much 1225 Raw owes in back taxes, but did say he has been working with the Department of Revenue to keep 1225 Raw open for the time being.

The hospitality group has had plans to sunset the 1225 Raw brand sometime in 2025 in favor of a full-service sushi and ramen restaurant similar to Izakaya Fishtown, said Lu.

Should 1225 Raw be forced to close on Jan. 15, Lu said he isn’t sure it would be the right time for a full rebrand. Sushi by Bou would likely be able to operate in the interim under different business licenses since they don’t share a kitchen.

“We don’t want to just change the signage, update the menu a little bit, and say, ‘Look this is like Izakaya,’” said Lu. “There are a lot of moving parts and we want to be intentional.”