A popular family-owned restaurant in the Bay Area is shutting its doors after facing a costly lawsuit related to its “Ladies Night” promotion. Lima Restaurant, a well-loved Peruvian eatery in Concord, California, will serve its final meal on New Year’s Eve, marking the end of nearly a decade of service. The closure comes after the restaurant was hit with a gender discrimination lawsuit, which Chef and owner John Marquez says has drained his business of tens of thousands of dollars, leaving it unable to recover.
Lima Restaurant, which has been a staple in the community for years, offered a weekly “Ladies Night” promotion where women could enjoy discounted drinks and wine at half price for three hours. While many patrons enjoyed the event, a lawsuit filed last year over the promotion claimed it violated California’s gender discrimination laws. Marquez described the lawsuit as a frivolous attack by “ambulance-chasing lawyers” who, he believes, weren’t even local residents but instead capitalized on the state’s laws targeting such promotions.
“We haven’t fully recovered from the recent discrimination lawsuit related to our ladies’ night discount,” Marquez told KRON-TV. He added that the increasing operating costs were also contributing to the restaurant’s financial struggles.
The news of Lima’s closure struck a chord with many regular customers, who defended the promotion as harmless and inclusive. “Promoting one gender does not discriminate against one gender,” said John Dias, a frequent patron of the restaurant. “Hello, I’m a lady. If I want to go out with the girls, it doesn’t seem like a rude thing to do,” added Mel Ludehese, another patron enjoying her last drink at Lima.
Despite public support, the lawsuit is part of a larger trend in California, where gender-based promotions are being increasingly scrutinized under state law. In fact, the issue has been settled in courts across the country. The Unruh Civil Rights Act of 1959, which prohibits discrimination based on sex, race, color, religion, ancestry, national origin, sexual orientation, and immigration status, has been used to target businesses offering discounts or promotions specifically aimed at one gender. A landmark California Supreme Court ruling in 1985 deemed “ladies’ day” promotions, such as those at car washes and nightclubs, illegal under this law.
Lima Restaurant’s troubles echo a similar case earlier this year with the Fresno Grizzlies, a minor league baseball team. The Grizzlies were sued for $5 million after offering free admission for women on “Ladies Night.” This was just the latest in a series of legal challenges faced by businesses across the country who have run similar gender-based promotions. Even Major League Baseball has been involved in such lawsuits, with the Oakland Athletics settling for $500,000 after a 2016 lawsuit related to a Mother’s Day giveaway.
As the restaurant prepares to close, Marquez and his family reflect on the toll the legal battle has taken on their once-thriving business. “It’s a shame,” he said, adding that the lawsuit, combined with the rising cost of doing business, made it impossible to continue. The closure of Lima Restaurant serves as a stark reminder of the shifting landscape of business operations in states like California, where laws intended to prevent discrimination are increasingly used to target time-honored traditions and promotions that many consider innocuous.
For many, the closure of Lima Restaurant represents more than just the loss of a local eatery—it’s a sign of the times, where even well-intentioned promotions can be torn apart by litigation in a climate that seems to favor lawsuits over common sense.
