A decade-old hub for contemporary Mexican dishes in downtown San Jose has shuttered.
Olla Cocina in San Jose announced on its website and through social media that it is permanently closed; its final day was Oct. 19. The restaurant, which said it took a seasonal approach to Mexican food, drew in diners with dishes like mole plates with rice and poached chicken, tacos stuffed with fillings such as duck carnitas, and chiles rellenos.
The closing announcement stated that “the current economic climate” made it “impossible for us to continue.”
General manager Parbiz Pazoki told the Chronicle that the area had not fully rebounded from the malaise of the COVID-19 pandemic.
By the numbers, San Jose has seen the biggest economic rebound of any Bay Area downtown since the pandemic. An analysis this year from think tank Bay Area Council shows that downtown San Jose has seen foot traffic return to some 90% of its 2019 levels — significantly more than San Francisco or Oakland, which, respectively, have reached 59% and 70% of their pre-pandemic foot traffic. The number of workers in San Jose’s downtown has also grown this year — to 27,400, up 2,100 from 2024.
But Pazoki said that business has lagged as workers from nearby offices haven’t made a full return to the area’s restaurants, often dining at company cafeterias, while events at the nearby convention center have been too few. “We’re not getting the same support,” he said. “And while there is progress being made in downtown San Jose, it’s not happening fast enough.”
Office vacancies remain elevated for downtown San Jose — 31%, compared with 23% for Oakland.
Despite the overall upswing, 2025 has remained challenging for restaurants throughout the Bay Area. Tariffs and inflation have driven up the costs of ingredients and supplies while utilities, labor and rent also constantly creep upward, shrinking margins even as revenue rises. The August 2025 Consumer Price Index report shows that the year-to-year cost of dining out in the Bay Area increased 2.7%.
While there is no set plan to reopen or relocate Olla Cocina at this time, Pazoki said that parent restaurant group Palisades Hospitality, which also operates Italian restaurant Piatti in Mill Valley, is considering its options.
