Former President Bill Clinton sent a letter to Osso Buco proprietor Nino Selimaj, demanding that he take down the picture from the walls of his Greenwich Village restaurant.
"I was surprised to get the letter because the picture has been there a few years," Selimaj told The Associated Press on Wednesday. "She's eaten here a few times."
The Sept. 18 letter from the office of William Jefferson Clinton says Chelsea is a private citizen and that although she may have eaten at the restaurant "this does not serve as an endorsement."
The letter, signed by Clinton counselor Douglas J. Band, says Chelsea "was not consulted prior to this picture being displayed, and thus, her permission was not given for you to do so."
"We reserve the right to exercise any and all options available to us if you refuse to comply," the letter says.
Selimaj notes that celebrity photos in New York restaurants are common: He also has pictures on his walls of him posing with former mayor and GOP presidential candidate Rudy Giuliani and New York Yankees star Derek Jeter.
"A photo of a celebrity in New York is as common as a hot dog vendor," he said.
Selimaj says the letter came as quite a shock.
"I was really, really heartbroken because I have four daughters and Chelsea is like my daughter," Selimaj said. "She doesn't want to be there. If that comes from them directly, definitely, I will remove it. If she really insists to remove it," reports CBS station WCBS-TV.
Customer Iris Elkabs says she thinks Chelsea should reconsider.
"She has a right," Elkabs said, according to WCBS. "If she doesn't like it, it should come down, but I think it should stay. It's a very nice photograph."