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The fitness studio plans a soft opening by the end of the month.
The bubble tea shop offers specialty drinks like the Dirty Panda.
"Times have changed and the Castro just isn't what it was," said the owner.
"Since taking over, the numbers have just not made sense," said new co-owner Ryan Scott.
The restaurant is hiring bartenders, barbacks, line cooks, hosts and servers.
In two years, the city has twice accused the eatery of violating rules for chain retailers.
Owner Mike Holland cited declining sales and high rent as contributing factors.
“We’re trying to go for another 50 years," said new owner Mario Azzolino.
After closing last June, the location operated briefly as a pop-up during the holidays.
The tea shop will be the third business to occupy the space since Philz Coffee left in 2015.
Anticipating bigger crowds, the dispensary has hired new employees.
Next month, it'll be easier to buy marijuana in the Castro than do your laundry.
The shared commercial space opened in March 2016.
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