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This study examines the spatial dimensions of restaurant closings in New York City across the COVID-19 era, with a focus on how restaurant’s ethnic identity interacts with neighborhood’s ethnoracial composition. Using a combination of restaurant inspections, open restaurant applications and American Community Survey, this study employs multilevel logistic models and spatial analysis for autocorrelation and spillover effects. Findings show that anti-Asian sentiments disproportionately affected Asian restaurant closings in predominantly minority neighborhoods during the pandemic, and a residual effect in Asian neighborhoods in post-COVID era. On the other hand, affluence and residential stability of a neighborhood mitigated restaurant closings. Despite shifts in pandemic-related racial discourse, enduring ethnic effect in space and socioeconomic inequalities continued to shape the urban foodscape.