Rising Costs Hit California Eateries: Which Spots Are Temporarily Closing

Many beloved California restaurants have recently hit pause, closing their doors while owners regroup, renovate, or search for new locations. These temporary closures show both the challenges of the industry and the determination of chefs and restaurateurs to return stronger. Here’s a look at ten notable spots currently on hold, and what diners can expect when they reopen.

1. Wah Jee Wah (Hayward)

Wah Jee Wah (Hayward)
© KQED

If you ever found comfort in the smoky aroma of Wah Jee Wah’s Indian barbecue, you’re not alone. This Hayward favorite shut its doors after a steep rent increase, leaving regulars searching for that unmistakable tandoori flavor. I spoke to nearby residents who still recall family meals and festive gatherings here, which goes to show how deeply a local eatery can root itself in a community’s routines.

The owners haven’t called it quits for good. They quickly set up a presence in Milpitas and even test out new ideas as a pop-up in Fremont, showing real grit. Their eyes remain set on a San Francisco relaunch, so while this chapter has closed, the story is clearly not over.

Not every temporary closure feels this hopeful. Wah Jee Wah’s flexibility is rare, but it shows how some restaurateurs tackle uncertainty by staying nimble. For fans, following their journey has become part of the fun, hinting that sometimes, a setback simply opens the door for reinvention. The scent of barbecue just might return sooner than expected.

2. Teta Nahla (Oakland)

Teta Nahla (Oakland)
© San Francisco Chronicle

When Teta Nahla opened in Oakland, it became a quiet gathering place for families seeking the flavors of home. Owner Mohammad Abutaha managed multiple ventures at once, but in early May, the strain became too much, prompting him to pause this beloved kitchen’s operations. Locals recall the restaurant’s soft, spiced bread and fragrant stews, which brought generations together over simple plates.

The closure isn’t a definitive farewell. Abutaha spoke candidly about his team being stretched thin, and there’s talk of a possible return. I’m reminded that sometimes, it’s not failure but fatigue that forces a break, especially when passion outpaces capacity.

Until then, Teta Nahla’s story lingers in the memories of regulars who crave both the food and the warmth of its welcome. Few restaurants manage to weave themselves so tightly into the local fabric. This pause feels more like saving a seat at the table than packing up for good, and that’s a rare kind of optimism you don’t often see in tough times.

3. City Tacos (San Diego, East Village)

City Tacos (San Diego, East Village)
© San Diego Union-Tribune

A lively bite at City Tacos once meant game-day buzz and late-night cravings in San Diego’s East Village. That changed on June 30, when the familiar storefront closed, its lease picked up by the Padres for office space. Regulars miss the sizzle of carne asada and the hum of fans spilling out after a win.

Instead of disappearing fully, though, City Tacos has its eye on a possible home inside Petco Park. Relocation isn’t the same as closure, but it does mean a break in routine for hungry fans. For owner Gerry Torres, the move represents both a loss and a chance to adapt.

This sort of temporary closure, driven by the city’s shifting priorities, is one you see more often as neighborhoods change. Whether City Tacos returns to the public or stays behind the stadium gates, it’s proof that even a staple spot must keep moving to survive. Fans just hope their favorite al pastor gets a second inning soon.

4. Khan Toke Thai House (San Francisco)

Khan Toke Thai House (San Francisco)
© Thrillist

Khan Toke Thai House was more than a restaurant, it was a passage into another world, with its intricate decor and fragrant dishes welcoming guests for decades. After its lease expired in 2025, the doors closed quietly, leaving longtime patrons nostalgic for evenings spent over shared plates of larb and curries. Generations marked special occasions here, and many regulars recall being greeted by staff who remembered their favorite dish.

The closure marks the end of an era, made more poignant by the graceful way ownership handled the transition. Rising rents in San Francisco have claimed many restaurants, but Khan Toke leaves behind a sense of heritage and warmth that’s not easily replaced. I’ve heard wistful stories from families who celebrated milestones within those four walls.

While the building may soon house something new, the spirit of Khan Toke, its hospitality, recipes, and memories, remains. This kind of closure leaves a lasting impression, inviting us to honor what came before as the city’s dining scene evolves.

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