One of San Diego's oldest restaurants will close later this month
Hob Nob Hill, a Bankers Hill icon for more than eight decades, will soon close its doors for good - a little more than a year after a new owner took over the beloved restaurant and bakery.
While no reason was given for the imminent closure, the current ownership described it on social media as a “bittersweet” decision that will no doubt sadden the “many people who hold special memories of Hob Nob Hill close to their hearts,” read the post on Instagram.
The announcement itself was vague about the future of the real estate on First Avenue and Juniper Street, referring to preparations for the “next chapter,” and stating, “This isn’t goodbye … We can’t wait to welcome you back and continue creating memories for generations to come.”
News of the closure, on June 30, comes not long after owner Douglas Hamm of Black Swan Hospitality purchased the restaurant real estate in early 2025 for $2,715,000 from previous long-time owner Tania Warchol, who bought the restaurant in 1993 with her then-husband, Jeff Kacha. At the time of last year’s sale, she noted that she had made no demand that the restaurant remain the same, but said that the new ownership was “adamant about keeping the Hob Nob name and keeping it the same.”
While it had been the new owner’s intent to keep the storied restaurant operating with much the same menu, financial challenges mounted, making it difficult to sustain the operation, Black Swan Hospitality representatives said on Monday.
“Our goal was always to honor the restaurant's history while making only thoughtful and limited changes,” said Daniela DiGregorio and Gina Martinez, both vice presidents of operations. “We worked hard to preserve the experience that guests had come to know and love. However, as revenue declined throughout 2025 and operating costs continued to rise, we were required to make adjustments to the menu. Under our chef, these changes were carefully developed to maintain the quality, scratch-made recipes, while also supporting the long-term sustainability of the business.”
Continuing economic pressures, including rising labor costs and food expenses, persisted, they said, and have similarly affected restaurants throughout San Diego and Los Angeles, “as evidenced by the numerous restaurant closures in both markets.”
For now, Hamm has no interest in selling or leasing the restaurant space in Bankers Hill, DiGregorio and Martinez said in an email to the Union-Tribune. More immediately, they said, Hamm and his wife Lara will be focused on opening next month By the Sea, a coastal Mediterranean concept on Orange Avenue in Coronado.
One of the more high profile hospitality ventures that is also owned by Hamm is Nolita Hall, an expansive, European-inspired dining and drinking venue in Little Italy.
A hybrid diner-style restaurant and bakery, Hob Nob has long been a culinary institution and gathering spot that underwent a number of incarnations - and name changes - in its early years. But it has always stayed true to such classic comfort food favorites as chicken fried steak and eggs Benedict.
The restaurant was founded by Harold and Dorothy Hoersch in May 1944 at a nearby location. Then called the Juniper Cafe, the restaurant was little more than a 14-stool lunch counter. Two years later, the couple moved the eatery to the current site, changing the name over the years to the Melody Grill, then Dorothy's Oven, and finally to the Hob Nob Hill.
Justin Earley, senior vice president of Capital Real Estate Ventures, who helped broker last year’s sale, was surprised by the planned closure, given what he says was excellent financial performance by the restaurant when he and partner Edwin Real collaborated with Warhol in recent years on a remodel and bar addition.
“We took the revenue of that place from the lowest since the Warchol/Kacha era to the highest grossing year in the 80-year history of that restaurant, in our last full year of ownership,” Earley said. “We were on pace for $3.25 million in 2025 - and probably $4 millin by the end of the decade. Those are our very conservative projections, of which we hit every year, post-pandemic.”
Asked whether the current Hob Nob employees might go to work at By the Sea, DiGregorio and Martinez responded, “We are especially grateful that many of our dedicated Hob Nob Hill team members will continue this journey with us, bringing the same warmth and hospitality that guests have come to know and love. Several team members have already expressed excitement about joining the new team and helping create this next chapter.”
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