KELLY PRESNELL / arizona daily star

Greek Taverna, the eastside sister restaurant of the UA area’s Fat Greek, will close at the end of business Friday.

It is the latest blow for owner George Markou, who has been working since last summer to reopen Fat Greek after flooding shuttered the restaurant and caused more than $300,000 in damage.

“When you lose one and you don’t have income coming in ... then you put the other one in jeopardy,” Markou said.

The three-year-old Greek Taverna on North Swan Road has been hampered by the economy, Markou said, but he said he was able to balance it out when Fat Greek was doing well during the school year.

He said he decided to close the restaurant after his lease went up beginning this month.

Meanwhile, Markou had hoped to reopen Fat Greek, 994 E. University Blvd., as Pelio Grill Greek Taverna & Catering as early as last month. The opening is now on hold as he negotiates a settlement with his insurance company for the flood damage. Markou said he is seeking $350,000 from the insurance company and already has spent $35,000 on contractors and architects.

Pelio Grill will offer a number of seafood and sausage dishes native to Pelio, Greece, with most prices remaining under $10; only three dishes will top $10, Markou said.

Greek Taverna, 3225 North Swan Road, will be open from 11 a.m. to 9 p.m. Friday.