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San Francisco grant recipient Chicken Fried Palace shuts down weeks after $100K award

The Chicken Fried Palace restaurant in San Francisco’s Mission District closed less than three months after receiving a $100,000 city grant, citing sidewalk issues and a medical incident involving a founder.

Chicken Fried Palace, a Mission District eatery, has ceased operations only weeks after the city awarded it a six-figure Storefront Opportunity Grant. Owner Seth Stowaway attributed the halt to a recent medical situation involving a co-founder and to difficulties with the sidewalk in front of the restaurant. The grant, part of Mayor Daniel Lurie’s initiative to curb vacant storefronts, provided $100,000 in the spring and is one of more than $3 million distributed to 39 local businesses.

San Francisco’s Office of Economic & Workforce Development noted that most grant recipients continue to operate, and the city is now asking its attorney whether the closure breaches the program’s lease requirements. Stowaway indicated the location will stay open for pop-ups and events while he works with the landlord to find a new tenant. He previously earned a Michelin star at Osito and runs a consulting co-op called the Same Sun, as well as a new tasting salon named Folklore.

Why it matters

The closure raises questions about the effectiveness and oversight of city funds intended to revive struggling local businesses.

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