Some workers stay, commuting into San Francisco from cheaper cities like Concord or Hercules, falling asleep in their chef’s whites on the two-hour, late-night bus ride back. Some defect to startups looking for people to make their catered lunches, and who could blame them: a steady, 9-5 food service position (with benefits!) that pays twice as much as their last restaurant job? Restaurants have always had to grapple with razor-thin profit margins. But now, they’re having to think like labor activists: how do you create conditions that allow your employees to survive? (Lazy Bear even flirted with the idea of subsidized employee housing). Many think that the city should do more, anything, to make things easier--to ease up on permit fees (a SF liquor license costs around $300,000) or increase affordable housing--but progress is slow. Chris Pastena, who owns Chop Bar, Lungomare and Calavera, is Oakland’s largest private restaurant employer. But he recently told Hoodline that he’s not going to open any new restaurants until the city does more to encourage small businesses.

Daniel Patterson in the kitchen of Oakland’s first LocoL. (Audrey Ma)

The rise of fast casual

As restaurant owners see their friends and colleagues fail, they’re less likely to take risks. That’s especially true if there are investors involved, people used to quick returns on their investment. That leads to an emphasis on the familiar, the proven success: another Burmese restaurant, another ramen joint, another Tony Gemignani pizza place. Sure, there have been plenty of new, innovative 2016 openings, places like LocoL or The Perennial. And there will be plenty of those next year, too. But you’ll also see things like an outpost of pricey sushi spot Nobu and an extension of salad chain Tender Greens. The corporations behind these chains know that the Bay Area is a market full of newly wealthy food obsessives, and unlike local restaurants, they can afford the city’s litany of expensive fees and permits.

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Here's Why 2016 Was Rough For Bay Area Restaurants