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South Swell, the waterfront sister concept to Swell Taco, will not reopen for the 2026 summer season after a licensing dispute with the Town of Babylon — with ownership blaming an “unexpected” permit issue.
For their part, town officials are pointing to broader safety and zoning conflicts and concerns.
In a message posted this week, the team behind the Bergen Point spot said an “unexpected licensing issue” involving a cabaret permit made it “impossible” to operate this summer, calling the situation “heartbreaking” for a business they described as a community gathering place. (Scroll down for the full post.)
The restaurant, which debuted in summer 2023 and returned in 2024 and 2025 to stronger and stronger crowds, had built a following for its waterfront views, live music and casual food-and-drink atmosphere.
“South Swell has clearly built a loyal following, and the town is sorry to see them decide not to reopen this season,” said the town supervisor’s deputy chief of staff, Kevin Bonner.
“That said, the framing in their [Instagram] post leaves out the central issue.”
Town officials say the issue goes beyond a single permit — and centers on how the property is legally allowed to operate.
According to Bonner, the Bergen Avenue site holds a certificate of occupancy for a deli-style use, which permits alcohol sales only in sealed containers for off-premises consumption.
South Swell, however, operated with a New York State Liquor Authority license allowing full on-premises service, including mixed drinks — a mismatch the town says raised larger concerns.
“This isn’t a paperwork technicality,” Bonner said.
He noted the C of O process is designed to ensure a site is properly equipped for its intended use, particularly at a waterfront location with limited parking and the potential for open-container alcohol leaving the premises.
Town officials also confirmed that noise complaints from neighbors prompted a review of the site, bringing the lesser-used cabaret licensing requirement into play for establishments offering live music.
While acknowledging the term may sound outdated, the town said the underlying rules — including keeping noise within property lines — remain part of the code.
Officials say they worked with ownership over an extended period to try to bring the business into compliance, but that effort ultimately fell short.
“We understand their frustration and wish them continued success,” Bonner said, referencing the owners’ ongoing operations in Babylon Village.
Looking ahead, the town said there are tentative plans for a local coffee shop operator to take over the space with a concept aligned with the site’s existing deli-style zoning.
“The town is genuinely supportive of small businesses, and our goal is always to help match the right use to the right location so that operators can succeed and neighbors aren’t bearing the cost,” Bonner added. “That balance is what the licensing and zoning process is there to strike.”
In their message, South Swell’s owners thanked customers for “every sunset shared, every laugh, every celebration,” saying the support turned the space into something far more meaningful than a typical seasonal business.
Farewell, from South Swell:
Top: Tacos and margaritas at South Swell in 2025 at Bergen Point in West Babylon. (Credit: GLI/Nick Esposito, file)
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