After previous denials to the Bay Area Reporter, Another Planet Entertainment has confirmed that it does have plans for the nail salon and coffee shop spaces that may be vacant when the businesses leases expire at the end of June.
As the B.A.R previously reported, the 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.
“These businesses are essential,” Ken Khoury previously told the B.A.R. “You take these businesses out, this part of the 400 block would be totally dead. Is this what the city wants? You’re taking a thriving business that serves the community for so long and just basically throwing it out. … I have five employees with dependents. How can I turn my back on them, and tell them to go away?”
APE still disavows involvement, and a spokesperson told the B.A.R. for a May 7 story that it has no plans to use the spaces if they become vacant.
Until, that is, APE’s CEO told the San Francisco Chronicle exactly that over the weekend, saying it needs the spaces to expand the box office.
The spokesperson had stated that the plans may change going forward.
“We always said that might change,” APE spokesperson David Perry stated May 17. “Right now, the plan is to hopefully use those spaces for expanded box office facilities and possibly expanded restroom facilities. We hope the building’s owner and the tenants in question come to an equitable solution.”
Brothers Ken Khoury who owns the Castro Coffee Co., and Riyad Khoury, who owns the Castro Nail Salon, had alleged APE had plans for the theater and was involved in negotiations.
Perry also stated the theater is slated to be open in early 2026. As the B.A.R. previously reported, the timetable had been pushed back from a June 2025 opening due to PG&E issues which have now been resolved.
“APE is now spending over $40 million on the project (up from $15). They will likely never recoup their investment. Literally this is a labor of love,” Perry stated.
Ken Khoury and Riyad Khoury, both straight allies, gave a statement through a spokesperson.
“There is nothing true about APE public statements, that’s their modus operandi, twist facts and coverup their intentions,” they stated. “Back in 2022 when they signed the lease they had extensive conversations with leading community leaders and they confirmed to them that they need the 2 spaces to create lounges for drinks and so on.”
APE took over management of the theater three years ago.
The brothers have gotten hundreds of signatures on petitions to Mayor Daniel Lurie and Board of Supervisors President Rafael Mandelman, a straight ally and gay man, respectively.
Mandelman represents the Castro on the Board of Supervisors. Mandelman has also been involved in negotiations, and the office of small business confirmed it has worked with the brothers.
Relatives of the Khourys own the building next door, which has a vacancy in the former Double Rainbow space at 415 Castro Street. Asked why they can’t put one of the businesses there, Ken said it is too small for his espresso machine.
Never miss a story! Keep up to date on the latest news, arts, politics, entertainment, and nightlife.
Sign up for the Bay Area Reporter's free weekday email newsletter. You'll receive our newsletters and special offers from our community partners.
Support California's largest LGBTQ newsroom. Your one-time, monthly, or annual contribution advocates for LGBTQ communities. Amplify a trusted voice providing news, information, and cultural coverage to all members of our community, regardless of their ability to pay. Donate today!
