San Diego’s Dining Scene Faces Major Restaurant Closures

News Summary

San Diego is experiencing a wave of restaurant closures affecting many iconic establishments, including the Red Fox Room, Zel’s Del Mar, and Oscar’s Mexican Seafood. These closures are due to financial struggles, rising operational costs, and labor shortages. While some venues, like the Red Fox Room and Henry’s Pub, have ceased operations, new restaurants are opening in response to changing market demands. The dynamics of San Diego’s dining landscape are evolving as businesses adapt to the current economic climate.

San Diego is witnessing a significant shift in its dining landscape as several iconic restaurants have recently closed their doors permanently. The closures are primarily attributed to financial challenges, rising operational costs, and labor shortages impacting both established venues and new businesses. Notable closures include the Red Fox Room and Steakhouse, Zel’s Del Mar, and Oscar’s Mexican Seafood, among others.

The Red Fox Room and Steakhouse ended its operations unexpectedly on May 12, stemming from ongoing financial difficulties. This establishment was known for its unique Tudor-style decor and historic fireplace, which was brought from an old inn in England by Hollywood figure Marion Davis. While owner Jim Demos expressed interest in possibly reopening the restaurant in September, it currently remains closed.

Another significant closure is that of Zel’s Del Mar, an American bistro that served the community for 15 years. The popular venue, located on Highway 101, has now been succeeded by Coral Del Mar, which has launched with an exciting menu featuring Southeast Asian, Hawaiian, and Baja-style dishes.

Oscar’s Mexican Seafood has also closed its North Pacific Beach location on Turquoise Street due to a landlord’s refusal to renew its lease. The family-owned restaurant, known for its seafood offerings since its establishment in 2011, continues to operate two other locations, including a newly remodeled shop on Emerald Street. Furthermore, the landlord has announced plans to open another taqueria in the space vacated by Oscar’s.

In the Little Italy area, Fisher’s Seafood House has ceased operations after just two years. This restaurant was notable as the first U.S. location of a seafood chain that originated in Mexico City. Meanwhile, Henry’s Pub, a staple in the Gaslamp Quarter for 25 years, also closed, coinciding with an employee-related incident on its last night, although its closure was already planned.

The overall San Diego dining scene is being significantly affected by various challenges. Rising costs, labor shortages, and evolving customer expectations have reshaped both long-standing institutions and newer establishments. This has created an environment where former popular venues struggle to remain viable.

Despite these closures, new restaurants continue to emerge in response to market demands. Recently opened venues include Flora in North Park, offering brunch and dinner menus, and Tajima, a ramen chain that has opened its eighth location in Crown Point. The Mediterranean restaurant chain Cava has also launched two new locations within San Diego County.

Additionally, several existing businesses are navigating their own challenges. Wildwood Flour Bakery in Pacific Beach has temporarily closed due to a rent increase but is making plans to reopen at a new location. Fig Tree Cafe has closed two of its locations but will retain its presence in Pacific Beach and Liberty Station. Chef Priscilla Curiel has made the decision to close her Tuetana Taqueria to focus on a new venture, Mujer Divina Brunch Cafe.

In more recent developments, Hob Nob Hill, a well-loved breakfast and lunch spot, has changed ownership but will continue to serve its traditional recipes under new management. Meanwhile, Zen Asian Bistro is set to close, with plans to transition into a new concept called Zen Skydeck by mid-June.

As San Diego’s dining scene continues to evolve, the combination of closures and openings reflects broader trends within the food industry, as businesses strive to adapt to shifting consumer preferences and economic pressures.

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Additional Resources

• San Diego Eater: Saddest Restaurant Closures May 2025
• CBS 8: Iconic San Diego Restaurant Red Fox Room Closes
• San Diego Eater: Saddest Restaurant Closures April 2025
• San Diego Union Tribune: The Dish – Roundup of New Restaurant Openings and Closures
• NBC San Diego: San Diego-Based Jack in the Box Closures
• Wikipedia: San Diego