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Al Pastor Papi Will Close Union Square Spot in December

The taqueria at 232 O'Farrell St. will shutter on December 31 following a rent increase.

Updated on Sept. 30, 2026 in Openings & Closings

A weathered brick storefront with a fabric awning sits empty on a foggy San Francisco street.
Al Pastor Papi will vacate its Union Square taqueria location on December 31 following a rent increase to $25,000 monthly. AI Illustration. Upload story photo >

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Diners at Al Pastor Papi in Union Square will lose their go-to spot for tacos when the restaurant closes its doors on December 31. The closure follows the property owner's request for a $25,000 monthly rent for the lease renewal.

Why it matters

The closure highlights the ongoing challenge for downtown small businesses operating under the city's Vacant to Vibrant program as their initial subsidized leases expire. The owner is currently searching for a new location in San Francisco to continue operations.

The taqueria currently sees 150 sales on a typical weekday. The renewal demand for $25,000 per month stands against the program's initial rate of 10% of sales.

The players

Al Pastor Papi

A local taqueria that transitioned from a food truck to a brick-and-mortar storefront through a city-sponsored program.

EOS Investors

The property management firm that purchased the building at 232 O'Farrell St. in early 2026.

The details

Al Pastor Papi originally occupied the space at 232 O'Farrell St. as part of the Vacant to Vibrant initiative, which launched in 2023 with a $500,000 donation from JPMorganChase to fill empty storefronts. After EOS Investors purchased the building in March 2026, the new owners proposed a $25,000 monthly rent that the operator deemed unsustainable. The business will vacate the premises when its current agreement ends on December 31, 2026.

Timeline

  1. 2018: Al Pastor Papi launches its food truck business.

  2. January 2025: Owner closes his mobile food truck operation.

  3. March 2026: The property at 232 O'Farrell St. is sold to EOS Investors.

  4. December 31, 2026: The lease expires and the restaurant closes.

Across the Bay

This move marks a departure from the initial success of the Vacant to Vibrant program, which aimed to revitalize downtown with low-barrier leases. It mirrors broader challenges in downtown commercial real estate as property owners adjust rents to market levels.

If you are a regular at the O'Farrell Street location, you have until December 31 to visit before the storefront closes. Following that date, customers will need to monitor the business's social channels for updates on where they may reopen elsewhere in the city.

The takeaway

For small business operators using city-subsidized programs, the end of an initial agreement is a critical moment to audit local real estate costs. Follow the business's online updates in the new year to see if they secure a new space in another neighborhood.

Further reading

You can track other shifts in the local retail landscape on our Openings & Closings page.

Source note: This article includes information reported by San Francisco Chronicle.

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