California restaurant closes after 30-year run when landlord surprises them with bad news

A beloved San Francisco staple that has spent nearly three decades feeding downtown office workers has been forced out of its long-running location after its corporate landlord pulled the rug out from the under the owners.

Oasis Grill, a family-owned Mediterranean eatery that has dished out gyros, shawarma wraps and kebabs since 1999, served its final meal at its 1st Street location last week, after their lease was handed to another restaurant, according to the San Francisco Standard.

“We were blindsided,” co-owner Muna Azzghayer told the outlet.

While Oasis Grill survived the economic ups and downs of the city’s business district, it couldn’t survive its landlord.

Azzghayer and her husband, Mohammad Zughaiyir, told the Standard they were caught off guard when commercial real estate giant Kilroy Reality declined to renew their lease, which expired at the end of October. Instead, the landlord informed the couple that another restaurant would be taking over their longtime home.

The trouble began brewing earlier this year when building management started parading prospective tenants through the bustling storefront, according to Azzghayer.

When she pressed for answers about whether their lease was in jeopardy, management was reportedly silent.

Azzghayer believes the business fell victim to a ruthless bidding war, suspecting that the incoming tenant simply offered dollar figures the mom and mom eatery couldn’t match.

“They’re looking for more rent than what we’re paying, and they brought somebody else in and told us, basically, bye,” Azzghayer told the Standard. “We were committed to San Francisco, we believed in San Francisco, and I guess we paid the price for it.”

The eviction carries an especially brutal financial sting.

Back in 2015, the owners sank roughly $2 million and an entire year transforming the counter-service space from the ground up, including installing brand new commercial gas lines.

Shortly after completing the extensive overhaul, the business was pummeled by the COVID-19 pandemic, weathering years of cratered foot traffic and remote work policies that left the Financial District resembling a ghost town.

While the 1st Street location is gone, Oasis Grill still serves customers at three remaining San Francisco outposts on Drumm Street, 4th Street and Market Street.

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