Red O, the upscale Mexican restaurant across from Westfield UTC in La Jolla, is shutting down its La Jolla location and laying off all 91 employees on April 20. The closure follows the property owner’s decision not to renew the lease as part of a planned redevelopment of The Plaza campus.
A Worker Adjustment and Retraining Notification filed earlier this month lists Red O La Jolla, LCC as initiating a permanent closure that will affect 91 employees, with an expected shutdown date of April 20, according to a WARN filing tracked by WARNwise. Despite the filing, the company’s corporate site still lists the San Diego restaurant alongside locations in Newport Beach, Santa Monica and Westlake Village, per Red O.
Landlord moves ahead with housing plan
The Irvine Company, owner of The Plaza at UTC, told The San Diego Union-Tribune it declined to renew Red O’s lease because it plans to tear down two 1980s office buildings and build hundreds of apartments as part of a broader campus master plan. A company spokesperson told the Union-Tribune that demolition is expected to begin in spring 2026 and that construction could take roughly three years.
A flagship that never quite fit
Red O opened in UTC in 2017 as a large, resort-style Mexican dining room, with chef Rick Bayless serving as culinary director at the launch, according to Eater San Diego. The concept leaned into big parties and office-crowd lunches, a format that has gotten tougher to sustain as consumer habits and office commuting patterns have shifted for mall-adjacent, high-capacity restaurants.
What management and staff say
Manager Kathryn Johnson told The San Diego Union-Tribune that the La Jolla location will stop service on April 20 and that there are no plans at this time to bring another Red O restaurant to San Diego. The WARN filing lists 91 affected workers. Under California’s WARN law, employers must provide at least 60 days’ notice and other required information, according to the California Employment Development Department.
What’s next for the UTC space
With the lease off the table, Red O’s sizable dining room becomes one of the first large-format retail spaces at UTC to be cleared for the Irvine Company’s housing push, a shift that is likely to redraw how the plaza serves both office tenants and shoppers. For now, the developer has framed the project as part of a broader effort to knit housing, transit and office uses together across the campus. No replacement tenants or short-term use for the Red O site have been announced.
Legal note
The WARN filing is intended to give workers time to plan their next move. California’s WARN guidance notes that employers who fail to meet notice requirements may face liability for back pay and benefits covering the notice period. Workers with questions about the process or about eligibility for unemployment and re-employment services can find resources and FAQs at the California Employment Development Department website.
