Ahmed Labbate, a partner of Broadway in Laguna Beach, said Friday the restaurant was "calling it quits" and would no longer serve foie gras free with a $55 glass of wine, the Los Angeles Times reported.
"I wish I had the money to fight PETA [People for the Ethical Treatment of Animals], but we don't," Labbate said. "We're a small restaurant and we don't have the means."
Foie gras is made from the liver of ducks or geese that have been fattened, often through force feeding.
PETA sent chefs at Broadway and Arc in Costa Mesa a letter in April threatening legal action if the restaurants didn't stop serving foie gras after a statewide ban went into effect in July, the Times said.
"We're glad these chefs will discontinue illegally giving foie gras away," said Lisa Lange, PETA's senior vice president of communications in Los Angeles.
Arc chef Noah Blom said he was using it in a sauce for a steak dish not on the menu that known customers can request, the Times said.