Oldest restaurant in Fisherman’s Wharf plans to reopen after multi-year legal battle

An enormous, century-old Fisherman’s Wharf restaurant on a beleaguered stretch of the tourist corridor plans to reopen after a drawn-out legal battle with the Port of San Francisco. 

Steak and seafood mainstay Castagnola’s at 286 Jefferson St. closed its doors in March 2020, and like many other Fisherman’s Wharf restaurants (opens in new tab), it never reopened. 

In late 2021, the city sued it over unpaid rent (opens in new tab), accusing the owners of rejecting earlier offers of financial relief (opens in new tab) and letting the property “fall into disrepair.” In 2023, the San Francisco city attorney filed a new lawsuit demanding more back rent, along with compensation for deferred maintenance. In addition, it sought to have Castagnola’s leave the premises, despite the restaurant’s lease extending to 2036. 

Now, following years of legal wrangling, the city authorized an agreement (opens in new tab) at the Board of Supervisors meeting on Tuesday stipulating that Castagnola’s could settle more than $1 million in debt and continue its tenancy if it pays the Port of SF $300,000 within 180 days, spends no less than $900,000 on upgrades, and reopens to the public within one year. 

Its owners, Kathrine Higdon and Cynthia Foxworth, could not be reached for comment.

The settlement “represents a major step forward in the path to reopening a notable restaurant in the heart of Fisherman’s Wharf that had been closed since 2020,” said Port spokesperson Eric Young. “Reopening a restaurant in this location will provide patrons of Fisherman’s Wharf a new attraction, one with access to elevated patios and dining rooms with spectacular views of the inner lagoon and beyond. We are excited at the prospect of further enlivening a dormant location, which will build on the revitalization already underway in the area.” He also thanked Castagnola’s ownership for their “commitment to Fisherman’s Wharf.” 

The settlement “provides appropriate resources to the city while ensuring Castagnola reopens to serve the public,” city attorney spokesperson Jen Kwart said.

The restaurant’s roots trace back to Tomaso Castagnola, who is said to have invented the Dungeness crab cocktail (opens in new tab) at the 1915 World’s Fair in San Francisco, before opening up a crab stand on the wharf the following year. Over the ensuing decades, his humble stand eventually grew into a two-story, 272-seat restaurant.

Its next chapter began when retired Army general Andrew Lolli bought it from Castagnola in 1976. Lolli continued to operate the restaurant into his 90s (running into his own share of financial troubles along the way (opens in new tab)), before passing it on to his stepdaughters, Higdon and Foxworth, in 2003. When it reopens, it will regain its mantle as the oldest restaurant on Fisherman’s Wharf. 

Castagnola’s settlement comes at a time of reinvention for Fisherman’s Wharf (opens in new tab). The area still has some glaring vacancies, including The Fisherman’s Grotto, Alioto’s, and Lou’s Fish Shack (opens in new tab), as well as other spots on the financial brink, like Italian restaurant Capurro’s (opens in new tab) and Nick’s Lighthouse.

At the same time, various new restaurants have opened or are on their way, including a Nation’s Burgers (opens in new tab) and an incoming Taco Bell Cantina (opens in new tab). What’s more, plans are moving forward for a $10 million revamp of the tourist destination, which includes demolishing the former Alioto’s space in favor of a new public plaza (opens in new tab).