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HomeHealthWhy these businesses are betting big on SF despite 'doom loop'

Why these businesses are betting big on SF despite ‘doom loop’

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Anpoy Pawaritsirikul had spent 12 years working as a manager at James Beard-recognized Lotus of Siam in Las Vegas before deciding that the time was right to open her own restaurant. Last year, she packed her bags for foggy San Francisco, and in January, she officially opened Sisterita, a breakfast and brunch spot. 

“My wife brought me here,” Pawaritsirikul said. “We got married last year, and then we opened the restaurant right after. Because we’ve been … working in this industry for a while, we wanted to do something for ourselves.” 

Sisterita, a Thai, French and American fusion restaurant, opened in January 2023. (Courtesy of Anpoy Pawaritsirikul)

Sisterita, a Thai, French and American fusion restaurant, opened in January 2023. (Courtesy of Anpoy Pawaritsirikul)

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Rodney Fong, president and CEO of San Francisco’s Chamber of Commerce, reasons that while the city hasn’t made a full recovery since the pandemic, he’s observed the potential for a faster bounce back. He said that the Financial District, which was among the hardest-hit neighborhoods, has gained newer businesses in the past couple of years that present opportunities for growth. 

“We’re starting to see some upswings in downtown,” Fong told SFGATE. “Nightlife, food and entertainment are thriving.”

International restaurant chain Chotto Matte is slated for San Francisco's Union Square in the fall of 2023. The swanky rooftop restaurant hopes to dazzle guests with Peruvian and Japanese fare, as well as sweeping views of San Francisco. 

International restaurant chain Chotto Matte is slated for San Francisco’s Union Square in the fall of 2023. The swanky rooftop restaurant hopes to dazzle guests with Peruvian and Japanese fare, as well as sweeping views of San Francisco. 

Courtesy of Chotto Matte

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Pawaritsirikul has adjusted as a first-time restaurant owner, despite the overarching hurdles of office vacancies, crime and large retail closures throughout the city. Sisterita is at 669 Commercial St. in Chinatown, which borders the Financial District. The restaurant is on a narrow corridor that’s directly across the street from the former City View restaurant space, which lies empty following an unlawful detainer lawsuit earlier this year. The unoccupied storefront hasn’t been discouraging for Pawaritsirikul, who said that she loves her restaurant location. She’s banking on nearby hotels, like Omni San Francisco and the Hilton, to draw in tourists and locals alike.  

“[People] can just walk here in a couple of minutes,” Pawaritsirikul said. “I feel like if you are great, people will find you no matter what.”

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His latest bar is at 10 Annie St., just a few blocks from Union Square. The project, which pays homage to the historic 1930s jazz club, has been in the works since before 2020 and was completed during the pandemic years. Opening now had everything to do with timing.  

Dawn Club opened at 10 Annie St. in San Francisco. The jazz bar is part of the Future Bars Group brand and debuted in May 2023. 

Dawn Club opened at 10 Annie St. in San Francisco. The jazz bar is part of the Future Bars Group brand and debuted in May 2023. 

Bill Adams

“While San Francisco definitely has had its trials and tribulations recovering from COVID, we feel like this is the ideal time,” Dalton said. “San Francisco has a very vibrant nightlife that is very excited to be back and is looking for this kind of entertainment — especially live entertainment. I think people are ready for that kind of Roaring ’20s revitalization, which we’ve noticed is happening in San Francisco.” 

Santino DeRose, principal and managing broker at commercial real estate firm Maven, similarly believes that San Francisco is recovering. He’s seen three downturns in San Francisco throughout his career, and with each one, he noticed the creativity it sparks within business owners. He points to the splashy new restaurants that have recently opened across the city.

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North Beach, for instance, gained Flour + Water Pizzeria at the former Rose Pistola space in June. Cassava relocated from the Outer Richmond to North Beach last fall, and specialty grocery store Luke’s Local took up shop in the neighborhood this March. DeRose said that many of his clients have gravitated toward North Beach but have likewise been drawn to the Financial District.  

“The Financial District is central and easy access from other parts of the Bay Area. There are some interesting spaces architecturally,” he said.

Architecture was a key consideration for Kurt Zdesar, Chotto Matte’s founder, who plans to create an energetic space with sweeping views right in Union Square. The area was his focus all along for the first San Francisco location, which is expected to open this September at the former Macy’s department store at 100 Stockton St. The lively rooftop restaurant will include a robata grill, sushi counter and elevated DJ booth, contributing to both San Francisco’s renowned food scene and downtown’s nightlife resurgence.

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International restaurant chain Chotto Matte is slated for San Francisco’s Union Square in the fall of 2023. (Courtesy of Chotto Matte)

International restaurant chain Chotto Matte is slated for San Francisco’s Union Square in the fall of 2023. (Courtesy of Chotto Matte)

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“Despite the challenges that have recently shrouded the city, we view this as an era of reinvention and revitalization, a time to create a unique dining experience that can stand the test of time,” Zdesar told SFGATE via email.

A number of factors are leading prospective business owners to open in downtown San Francisco now, according to DeRose. He points to landlords offering rent markdowns to lessees as a means to improve the appearance of a space. Vacant spaces have likewise offered opportunities for new eateries and bars to open, like the forthcoming Pacific Heights restaurant 7 Adams by former Marlena chefs David Fisher and Serena Chow Fisher, as well as SoMa hi-fi bar Yokai by chef Marc Zimmerman. Sisterita, which took up the former space of Shilling & Co. Cafe, is no exception. 

Since opening her Thai, French and American fusion restaurant seven months ago, Pawaritsirikul said that the business has so far attracted a mixed crowd who stop by for the signature French toast. Whether the restaurant will be successful is unknown, but Pawaritsirikul is up for the challenge and expects to expand the food menu to include dinner options soon. 

“I feel like San Francisco needs something like [Sisterita],” Pawaritsirikul said. “I’m pretty confident that we can make it.”

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