Laurel Street Lost Six Longtime Businesses in a Year. What Replaced Them Tells You Something.

Laurel Street Lost Six Longtime Businesses in a Year. What Replaced Them Tells You Something.

  • August 20, 2026

Dave spent 33 years fixing shoes on Laurel Street. Next door, Guy ran a barbershop for about as long. Both retired within months of each other. The UPS Store a few doors down closed too, along with Blind Tasting and Paxti's Pizza. For a stretch in 2024, it looked like San Carlos's main commercial strip was losing its anchors one by one, the kind of quiet erosion that makes longtime residents start asking what's happening to their downtown.

Two years later, the answer is in front of anyone who walks the block on a Friday night. The businesses that filled those spaces did not arrive as an accident of cheap rent or a developer's plan. They arrived because people who already had a stake in this street, or in the Peninsula more broadly, decided to bet on it again.

The Pattern Nobody Predicted

Christian Conte already owned Drakes, one of Laurel Street's most established bars, when the former Sneakers American Grill space went dark. He didn't sell his existing lease and cash out. He took the empty storefront and opened Highlands Sports Bar & Grill, named after one of San Carlos's own parks, with 36 craft beers on tap and a large-screen TV in every booth. An operator who could have opened anywhere in the Bay Area chose to put more chips on the same block where he already ran a business.

The same logic shows up in the other new arrivals. Andy Gambardella, who previously ran Gambardella's, opened Pazzo at 1179 Laurel Street, at the south end near Brittan Avenue, a stretch that hadn't historically pulled much foot traffic. The format is narrow on purpose: Neapolitan-style wood-fired pizza and housemade pasta, dinner service, built for takeout as much as dine-in. Elia Restaurant took over the former Taurus space with a fine-dining Greek menu, run by an owner who already had Elia locations in Pleasanton and Walnut Creek before opening this one, with a fourth location in Campbell following. Esnaf brought Turkish food into the former Cuisinett storefront, a cuisine the street hadn't seen before on a stretch that leans heavily Italian and Greek. Bistro Mitte arrived with a German menu, and Impasto Pizzeria launched over the summer.

None of these are first-time restaurateurs testing a concept on borrowed money. They're operators who already had a track record somewhere close by and chose to extend it here. That distinction matters more than it sounds. When an anchor business closes and a chain or an inexperienced startup fills the gap, a street tends to lose character. When it's filled instead by people who already know how to run a kitchen on the Peninsula, the street gains range instead of losing depth.

What the New Mix Actually Adds Up To

Laurel Street's existing lineup was never thin. Pranzi has held down 777 Laurel with Italian pasta and steak for years. TOWN, set in the historic Tivoli building, runs wood-fired rotisserie chicken and hand-cut steaks under its own beverage program. 888 Ristorante Italiano, opened by Vince Maddalena after his father closed the family's longtime Palo Alto restaurant, keeps that lineage going a few blocks up. New Canton has served Chinese food and dim sum at 1160 Laurel for years without needing to reinvent itself.

What changed is the range sitting next to that established core. A German bistro. A Turkish kitchen. A Greek fine-dining room backed by real scale elsewhere. A Neapolitan pizzeria from a chef with 30 years of Peninsula history behind him. A sports bar with a name that only means something if you already know the parks in this town. None of these concepts overlap with each other, and none of them existed on this block three years ago. The churn that looked like decline in 2024 was closer to a sorting process, and the street that came out the other side covers more culinary ground than it did before.

Two Directions for a Drink

The drink side of Laurel Street splits into two distinct scenes, and knowing which one you're walking into changes the evening. Domenico Winery has been producing Cal-Italia varietals under family ownership for more than 20 years, and its calendar runs on ticketed events built around the wine itself, including an Annual Orphan Barrel Tasting each spring and a monthly comedy night called Grapes & Giggles.

A few blocks over, in the Industrial Arts District along Washington Street, Devil's Canyon Brewing Company runs a different kind of room entirely. Its covered back patio hosts breadmaking classes, comedy nights, and rotating programming that has nothing to do with a tasting menu. Hapa's Brewing has built its own following with Brainstormer Trivia nights, and Blue Oak Brewing adds occasional comedy into the mix. If Domenico is the place you go to sit still and taste something, the brewery cluster is where you go to make noise with a group.

What's Actually Happening on the Calendar Right Now

If you're reading this in the second half of August, Music in the Park is down to its final two Fridays. The city's 2026 series ran eight consecutive Friday evenings at Burton Park from June 26 through August 28, six to eight p.m., free to the public, with a different band each week: Mercy & The Heartbeats opened the series, followed by San Benito County Line, Grrlz Talk, Freestone Peaches, Misspent Youth, and Burnin' Vernon Davis on August 14. Two dates remain on the city's events calendar: E-Ticket Band on August 21 and Heartless closing things out on August 28. Beer and wine are sold onsite, and the crowd brings blankets rather than reservations.

The Sunday Farmers Market keeps running underneath all of this without needing a season or a promotional push. Every Sunday from 9 a.m. to 1 p.m., Laurel Street between San Carlos Avenue and Cherry Street fills with produce stands, bread, flowers, and the kind of vendors who show up whether or not there's a festival happening around them.

Looking ahead, the Art and Wine Faire returns October 10 and 11, spreading more than 200 artists across three entertainment stages along Laurel Street and San Carlos Avenue, with the event drawing over 40,000 people in a typical year. It's the one weekend where the street stops being a place you pass through on your way to dinner and becomes the destination itself.

The Street Is Worth More Weekday Attention Than It's Gotten

None of this reads like a neighborhood in transition toward something uncertain. It reads like a neighborhood that already knows what it wants to be and has been quietly assembling the pieces. The businesses that filled the empty storefronts didn't need to be coaxed in with incentives. They walked in because the people running them already believed in this particular block of this particular town.

If you've been meaning to try Pazzo, or you haven't wandered past the Industrial Arts District breweries in a while, or you've skipped the last few Friday concerts because the calendar felt like it would always circle back around, this is the point in the year where that assumption stops holding. Two Fridays are left. The farmers market runs every week regardless. And the street that came through 2024's closures looking uncertain has turned out to be more interesting than the one that went into them.

For residents who've watched this stretch of Laurel Street for years, the shift has probably already registered without needing a name for it. For anyone who wrote the block off after the wave of closures, it's worth a second look this month, before the summer concert series wraps and the block moves into its quieter fall rhythm ahead of October's Faire.

If you're weighing what any of this means for property values along Laurel Street or elsewhere in San Carlos, that's a separate conversation, and one the Watson Marshall Group is glad to have when you're ready for it.

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