Rumblings from community members hint that Another Planet Entertainment may be behind the move to evict a coffee shop and nail salon that rent space in a building owned by the family that owns the Castro Theatre, of which they are a part. The long-standing businesses are in ongoing negotiations with the owners of the theater to stay in their spaces past June.
Castro Coffee Company, at 427 Castro Street, and Castro Nail Salon, at 431 Castro Street, flank the theater, which is currently closed due to ongoing renovations. The theater has been owned by the Nasser family for generations but, since 2022, it has been managed by Bay Area concert promoter Another Planet Entertainment, which is spearheading a massive renovation and restoration project.
Now, as the renovations are ongoing, the two storefront businesses may have to leave by June, the Bay Area Reporter has learned. The coffee company's owner, Ken Khoury, declined to comment for this report, citing the ongoing negotiations over his lease.
Khoury explained a little more about his situation at the Castro Merchants Association's meeting March 6.
"Typically, the landlord would renew my lease for three years," he said, adding his shop was "very vital" to the Castro community.
"My roots are really deep in the neighborhood and I'm not about to give it up," he added. "We need support from the neighborhood – not yet, we're negotiating, I don't have anything definitive to tell you at this point – but I want to make everyone aware of what's happening."
He has owned the business since 1987, according to his LinkedIn profile. It previously had been known as the Castro Cheesery and has been a staple in the neighborhood for close to 40 years.
Nail salon owner Riyad Khoury told the B.A.R. March 5, "We are negotiating to figure out the situation and we hope they can give us something we can accept, that we can live with."
According to 2021 data published by the San Francisco Chronicle, the parcel containing the coffee company, the nail salon, and the theater is owned by Bay Properties Inc. and Steven R. Nasser. The three-unit property was assessed at a value of $4.9 million.
The Nasser family could not be reached by press time.
APE stated it has "nothing to do" with the leases of the respective businesses.
"Another Planet Entertainment is not the owner of the Castro Theatre," APE spokesperson David Perry, a gay man, stated. "The two businesses in question are not our tenants or subtenants, and we have nothing to do with their leases."
Perry disavowed what he phrased as a "rumor" that APE wanted to acquire the spaces.
"We're not going to comment on a hypothetical," he stated. "At the moment we're focused on getting the theater open for the community."
As the B.A.R. reported last month, APE had initially announced a summer 2025 date for the opening of the theater but pushed it back due to ongoing electric connectivity issues with which APE has a disagreement with the Pacific Gas & Electric Co.
APE's changes to the interior of the building had elicited opposition from community members, who contended the plans amounted to a wreck-o-vation. Groups like the Castro Theatre Conservancy and the Castro LGBTQ Cultural District lobbied to landmark the fixed, orchestra-style seating inside the theater in an attempt to prevent APE from replacing them with seating that can be retracted so that the venue could be used for concerts as well as for cinema.
These efforts failed, and the theater's interior was landmarked by the San Francisco Board of Supervisors, though not the seating.
Board of Supervisors President Rafael Mandelman, a gay man who as District 8 supervisor represents the Castro neighborhood on the board, stated to the B.A.R., "From my perspective it's pretty unfortunate."
"These are beloved businesses and active street-facing uses that help activate that block every day," Mandelman stated. "We have reached out to the Office of Economic and Workforce Development to try to find alternative storefronts if the businesses are interested."
A spokesperson for the city's Office of Small Business, which is hosted by OEWD, stated to the B.A.R., "Our team has been in touch with both the coffee shop and nail salon."
Asked how the search is going, a spokesperson for the city's Office of Small Business stated to the B.A.R. that the office "has offered our services to both the Castro Coffee Company and Castro Nail Salon. This includes help in lease negotiations. We can also support with relocation help from our leasing advisers, as well as permitting, if they end up relocating. We defer to the businesses themselves for an update on how it's going for them."
Nate Bourg, a gay man who is treasurer of the Castro Merchants Association and in line to be its next president, issued a statement on behalf of the group to the B.A.R.
"Negotiations between landlords and tenants are a private matter, however, these businesses are important fixtures on the upper end of the 400 block of Castro Street that help drive footsteps in the daytime and keep the block thriving and vibrant," he stated. "We hope that some resolution can be found to ensure the continued vibrancy."
Tina Aguirre, a genderqueer Latinx person who is the director of the cultural district, stated to the B.A.R. March 5, "I've been getting my coffee beans from the Castro Coffee for decades and I love the nail salon."
"I would be very sad if they have to move because the owners of the Castro Theatre have displaced them," Aguirre continued. "While the businesses could thrive in other spaces, the question remains that if the Nassers decide to annex the spaces for usage by the theater, what will bring people into the neighborhood when the theater is primarily (and sporadically) used in the evenings and if self-contained in terms of selling food, alcohol, and sodas? It will not serve as a draw for other neighborhood restaurants and cafes. I want the Castro Theatre to thrive and this does not have to be at the expense of longtime businesses like Castro Coffee and Castro Nail Salon. I urge the Nassers to reconsider their plans to annex these spaces."
Gerard Koskovich, a queer public historian who is a founding member of the GLBT Historical Society, was outspoken in his opposition to APE's theater plans. He stated there may be precedent for APE taking over the storefronts.
"There was speculation about this during the Save the Castro campaign based on APE's repurposing of the Fox Theatre in Oakland, which likewise swallowed up the street-level storefronts," Koskovich stated, though he had not heard of the negotiations between the coffee company, the nail salon, and the theater.
Updated, 3/5/25: This article has been updated with a comment from the nail salon owned.
Updated, 3/6/25: This article has been updated with information from the small business office, from the director of the Castro LGBTQ Cultural District, and the coffee shop owner.
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