Beloved coffee shop in SF's Castro District faces eviction amid neighborhood's revitalization era

Sunday, May 18, 2025
Beloved SF Castro coffee shop faces eviction amid revitalization era
A coffee shop in San Francisco's Castro District faces eviction, as its lease owners want to make room for a new ticket office for the Castro Theater.

SAN FRANCISCO (KGO) -- What can anyone say about the predominately gay Castro District that hasn't already been documented through photos and experiences?

As you approached the old Bank of America Building and the Castro Theater and -- later in the 1990s --the rainbow flag, you knew you had arrived at a place like no other.

Today, the landmarks are still here, and so are the memories.

"This place used to be party central," said Elise Fried, a longtime resident of the Castro. She also reminded us that AIDS cast a shadow over this community, which brought people together.

"There is a lot of community. How do I put it? Invisible threads here, like spider webs holding this community together, still from that time," Fried said.

MORE: San Francisco's GLBT Historical Society to have new home in heart of Castro District

Perhaps that kind of camaraderie is why many here are signing a petition in support of a beloved coffee shop, which faces eviction. It is located in the Castro Theater.

"OK, we advocated for them, but I did not know I was going to be the victim of this," said Ken Khoury, who owns Castro Coffee Company, which has been in this neighborhood since 1987.

His brother owns the nail salon on the other end of the Castro Theater building.

Both leases have not been renewed. They say Another Planet Entertainment, which now holds the lease to the theater, wants to make room for a new ticket office.

"This was a coat room for the Castro Theater and that was a soda fountain in the old days," said Khoury as he showed us the small space, which the coffee shop now occupies.

MORE: A look inside SF's historic Castro Theatre before $15M 'face-lift'

Many residents here agree the Castro's energy has been stagnant for awhile. So, when Another Planet Entertainment announced it was renovating this iconic building, most saw it as a sign of revitalization.

In fact, you could say, the Castro is having a kind of Renaissance moment. Harvey Milk Plaza outside the Muni station is undergoing a $35 million remodel, giving the former civil rights leader a proper recognition. The GLBT Historical Society Museum is moving to a new two-story building, funded, in part, by the city. An eight story residential building in the Castro will also soon start construction.

"Any time you can make changes in a neighborhood that is bringing more vitality, more revenue and hopefully more vitality, more revenue and hopefully more people coming to visit and feeling like they are welcome here, it's an overall positive thing for San Francisco and for the Castro," said Nate Bourg of the Castro Merchants Association.

And just last month, the Castro was designated as an entertainment zone, which means alcoholic beverages can be taken to-go and consumed during certain events, like the monthly night market.

"If anything, it's going to change the way that small businesses are supported, additional sales and revenue for the bars and restaurants that really need that help right now," Bourg said.

MORE: Rainbow Pride flag in SF's Castro District officially becomes a city landmark

Here's a last look inside San Francisco's historic Castro Theatre before its $15 million renovation that is slated to take more than a year.

Sure, there is persistent homelessness and empty store fronts, but the Castro seems to be doing better than other neighborhoods.

Still, there are those who believe a resurgence is not always beneficial to a community.

"It's sad to see that some of the businesses are closing down because of the fact that it's all about money, money, money," said one neighbor.

City officials have promised to help Khoury find Castro Coffee Company a new location, but at 76, he says it's a thought hard to accept.

"There is nothing on this block, nothing available. Where am I going to go? If I go two blocks away, it's like starting a whole new business," Khoury said.

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