It’s easy to miss the Felix, a hip speakeasy in Union Square with retro-cool decor and cocktails made with Asian spirits. But walk in through a hidden door on a Thursday or Friday at 9 p.m. and the bar is popping, even if the surrounding streets seem quiet.
“There’s generally a good crowd in here,” owner Matt Ho said. “We’re doing pretty well.”
Despite the constant news of businesses leaving downtown San Francisco and the slow return to pre-pandemic form, bars appear to be thriving in the area. Several drinking establishments have opened within the past year, from the vinyl-oriented Harlan Records to a luxurious wine bar called Mili. New venues continue to open, such as sports bar the Yerba Buena, which arrived last week. Owners say they’re optimistic business will grow, challenging the narrative of a decaying downtown.
Ho debuted his bar in April just below his Vietnamese restaurant Bodega SF, which opened last year. Once he felt the restaurant had gained its footing, he launched the bar. He notes regular movement nearby, with Thai restaurant Kin Khao drawing diners and activity at nearby bars like Bottle Club Pub and Lost Cat.
“We have to give people a reason to come down this way,” Ho said.
Ray Dobson holds up a plate of crab buns while his friends enjoy a laugh at the Felix in San Francisco. The Felix is one of downtown’s newest cocktail bars, located beneath the restaurant Bodega SF.
Felix Uribe/Special to The ChronicleAt the 1920s-inspired Harlequin on Fourth Street, business has been off to a strong start since opening in June. The new bar is seeing office workers for happy hour specials and company events, while nearby SoMa residents stop in for small bites over riffs on old-fashioneds.
When owner Phil Chen first considered opening the bar, downtown activity was lower than pre-pandemic levels, though the “doom loop” narrative hadn’t completely set in. As time went on and downtown’s forecast became bleaker, he still pressed forward with the project.
“Only people in the industry are crazy enough to look at all of this and take it head on,” he said. “We have to show our resilience and be more of a beacon to help people see the good in the city.”
Closer to the heart of the Financial District, prominent bar group Future Bars in May opened what could be its splashiest venue to date. The Dawn Club, a revived historic jazz hall, has been summoning guests with live music and an enviable collection of rare whiskeys. Future Bars CEO Brian Sheehy previously told The Chronicle that he is undeterred by talk of the self-perpetuating demise of San Francisco, referred to as a “doom loop,” although business has been uneven across his properties.
Future Bars owner Brian Sheehy at the Dawn Club in San Francisco. The new bar features live music and cocktails.
Juliana Yamada/The ChronicleFor those doing well, proximity to hotels has been key. He argues there is a direct correlation between hotel occupancy and activity at the bars. Neighbors such as the Palace Hotel, the Ritz Carlton and the Marriott San Francisco refer guests to the Dawn Club and other Future Bars spots on the same block: the sporty Lark Bar and retro newspaper-themed Local Edition.
“If somebody wants a real San Francisco experience, the concierge will send them to the Dawn Club. But, if they’re in town for a Giants game, they’ll recommend Lark Bar,” he said.
But even referrals cannot make up for the expected dips in business. Sheehy said his bars that rely on the 5 to 8 p.m. office crowd, like Rickhouse and Nightingale, are among his lowest performing. And activity is generally slower in July and August, due to locals taking vacations and a sparse convention schedule.
But there are reasons for optimism. Lori Lincoln, vice president of SF Travel, the city’s tourism board, said several conventions are coming downtown in the fall, including Salesforce’s annual Dreamforce in September, as well as other tech industry events. “These all drive spending at our downtown businesses,” she said.
International tourists are slowly returning to San Francisco, with forecasts for 2025 travel volume from countries like Mexico, South Korea and England expected to exceed 2019 figures. Tourism from China, which brought in $1.2 billion in 2019, is still far behind.
Jaden makes drinks for customers at the Felix in San Francisco. Downtown is in the middle of a bar boom.
Felix Uribe/Special to The ChronicleThe boom in downtown bars isn’t extending to restaurants, which have lower margins and higher overhead. “With a restaurant you’re really taking a greater risk to make sure people like you and they actually come back to eat,” Ho said. “At a bar you can be more creative and you have better profits.”
Some are trying to do both, adding substantial food to drinks-oriented businesses. Derrick Lee, for example, opened his SoMa bar Dragon Horse in February, betting on a combination of sake cocktails and sushi until 1 a.m.
“People are hearing about it and hopefully things will pick up,” Lee said, noting business has generally been steady from its 5 p.m. opening until closing time. Customers who come in for sushi end up ordering multiple cocktails, he said, and a karaoke room is gaining popularity for larger groups celebrating birthdays or looking for a private space.
Over at the Felix and Bodega SF, a symbiotic relationship has emerged between the businesses. Patrons often stop by for dinner before shuffling downstairs for drinks. But overall, Ho says downtown still needs more drinking options — and restaurants — open later to become a destination for nightlife.
“There aren’t too many bars that are lively until 2 a.m. like in the Mission or Dogpatch, so that’s been a challenge,” Ho said, adding that the Felix tends to clear out around midnight. “If we get more restaurants and bars in the area, it will be a really good look.”
Reach Mario Cortez: mario.cortez@sfchronicle.com
