The landscape of downtown Sacramento is experiencing a significant shuffle as newer storefronts emerge while established dining venues dim their kitchen lights for the last time. Hope Menefee, owner of Ecojoyous, celebrates the opening of her upcycled goods and craft store in Old Sacramento, even as nearby Rio City Cafe closes down after three decades, due to unresolved structural issues with the city-owned building it occupied.
The closures are not occurring in isolation. Sacramento has seen the end of several other popular establishments in recent times, including Zest Kitchen and J. Wild's. These shutters balance against the openings of businesses like the Cabana Club and Lucky Gold Jewelry in DOCO, and the sustainable transportation option of Capital Tuk-Tuk. These expansions and contractions exemplify the city's marketplace's natural ebb and flow, but also signify deeper issues that these businesses face. "It's the latest ebb and flow of downtown's business economy," said Andrew LaFrance on CBS News from the Downtown Sacramento Partnership, echoing the sentiments of small business owners hoping for a downtown renaissance.
Maintaining the equilibrium between new and old businesses appears to be a tricky act. A backdrop of restaurant closures across Sacramento adds context to these local business dynamics, as reported by The Sacramento Bee, where a myriad of factors are squeezing the restaurant industry. According to Yelp's study in 2024, restaurant openings saw a 4% decline over the past year, as the sector was hit with labor shortages, inflated costs, and shifting consumer expectations. "It definitely impacts the community as a whole," noted LaFrance on CBS News, acknowledging the community's current state.
With the Calling All Dreamers contest spearheaded by the Downtown Sacramento Partnership, entrepreneurs like Menefee were able to bring their business concepts to life. LaFrance detailed on CBS News how Menefee managed to "sit down, think through financial projections, marketing, staffing, hr, all of that and kind of round out her business concept." However, this aid stands in contrast to the struggles faced by historic spots such as Rio City Cafe. According to a statement obtained by The Sacramento Bee, General Manager Jimmy Gayaldo lamented that promises from the city had gone unfulfilled, leading to a sharp decline in revenue and eventual closure.
Amidst this turnover, there's a palpable sense of promise for what lies ahead. Menefee's optimism for her own venture reflects a broader hope for downtown's revitalization. "It is very promising," she admitted on CBS News. Meanwhile, Sacramento Mayor Darrell Steinberg is reportedly working to resurrect a $40 million project to refurbish the Old Sacramento waterfront, previously shelved during the pandemic, which could serve as a crucial injection of vitality for the area's commerce and conviviality.
