By Eric Curl
May 13, 2026 – Olympia Café will not reopen in its longtime River Street location after the restaurant’s owners were unable to resolve differences following the death of co-owner Nick Pappas last year, according to a letter from the restaurant’s attorney and a city press release issued Wednesday.
The city of Savannah announced it will reopen the competitive bidding process for the ground-floor restaurant space in the Thomas Gamble Building at 5 E. River St., after receiving notice that Galaxy Café Inc., dba Olympia Café, would not move forward with the lease agreement previously approved by Savannah City Council.
In a letter dated April 21 to City Manager Jay Melder, attorney Robert McCorkle said the restaurant’s ownership group had “been unable to resolve differences related to the ownership of the restaurant and are parting ways.”
“My understanding is that Vasilis has left the business and is opening a different restaurant in a different location,” McCorkle wrote, referring to co-owner Vasilis Varlagas. “Laura Papas is unfortunately unable to operate a restaurant herself. Therefore, she will not be able to move forward with the lease of the Premises and has no objection to the City leasing to another party.”
Last fall, Olympia Café had emerged as the top-ranked proposer in the city’s legally required request for proposals process and later secured unanimous approval from the city council for a new lease at the city-owned property.
At the time, the approval was viewed as a victory for supporters of the longtime River Street institution, which had faced an uncertain future after the city announced the lease would have to go out for competitive bidding under state law. Olympia Café, which opened in 1991, had operated for decades out of the Gamble Building next to City Hall.
The uncertainty intensified following the death of longtime owner Nick Pappas in May 2025 at age 80. Pappas was widely mourned across Savannah, where customers and former employees remembered him for his hospitality and larger-than-life personality.
When the city council approved the lease renewal in October, Varlagas delivered an emotional address promising to continue the restaurant’s legacy.
“I promise to continue the best service and the best food,” Varlagas told council members at the time. “I promise to work very hard for the city of Savannah.”
Under the approved agreement, Olympia Café had planned to return following renovations to the Gamble Building with a redesigned Mediterranean restaurant featuring an ice cream shop, take-out area and private dining space. The lease was expected to begin in the third quarter of 2026.
I
n Wednesday’s press release, the city said a new request for proposals for the approximately 4,800-square-foot restaurant space will be issued in the coming weeks.
Despite the breakdown in the deal, McCorkle said the owners remained appreciative of the city and community support Olympia Café received during its more than 30 years on River Street.
“For more than 30 years Olympia Café occupied the Premises and did its best to greet and serve the many visitors to the City of Savannah,” McCorkle wrote. “The owners are grateful for the support of the City and the Community over those many years.”
On Thursday, the city council will consider a $39,465 increase to the Gamble Building design contract with Greenline Architecture for additional work tied to the former Olympia Café space after newly exposed conditions differed from original assumptions. City officials said the mechanical and electrical updates are needed to meet code requirements and align with the building renovation. The new contract will be $955,690.
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