The closure (effective at the end of October) marks the end of an era for the property directly across from the Salesforce Tower. The owners say the closure was not their decision but the result of a protracted lease dispute with the landlord (Kilroy Realty).
A Lease Dispute and Blindsided Owners
The co-owners, Muna Azzghayer and Mohammad Zughaiir (who have run the business since 1999), say they were absolutely flabbergasted by the landlord's decision not to renew their lease. Azzghayer believes a new restaurant came in and outbid them for the space.
"They're after more rent than we're paying," Azzghayer said. Kilroy Realty started showing the space to prospective tenants in early 2026, with no real indication of what the future would hold for the Oasis Grill owners.
The loss is absolutely gutting for Azzghayer and Zughaiyir given the huge amount of money they'd put into the property. In 2015, they invested about $2m in a major build-out and renovation of the counter-service restaurant (a full year's work), which included new gas lines.
Three Locations Remain Open
While the flagship 1st Street location is now closed, fans of Oasis Grill by no means have to say goodbye. The business is still operating at three other locations throughout San Francisco:
- 47 Drumm Street
- 200 4th Street
- 711 Market Street
The closure of the 1st Street location is part of a continuing trend of Bay Area restaurant closures, caused by rising operating costs and the ongoing nightmare of lease renegotiations in the post-COVID downtown.