San José Restaurants and Eateries Set New Record for Growth and Support

10/19/2025

 [ Article originally appeared in www.sanjoseca.gov ]

San José’s food and restaurant sector is on the rise, fueling San José’s growing status as a culinary destination. Within the last three years, the City of San José has issued a record 933 new business tax certificates to food businesses, ranging from mobile food vendors and small cafés and bakeries to full-service restaurants.

While Downtown is the most popular location for new restaurants, with nearly a quarter of the new eateries, notably 63% are in the city’s diverse neighborhoods such as Japantown, Calle Willow, Alum Rock, Willow Glen, the Alameda, and Little Saigon. This underscores San José’s reputation as a city where global flavors thrive.

Recent sales tax data tell a similar story. From January through March 2025, San José’s food and restaurant sector achieved the highest sales tax revenue for the sector in the city’s history, surpassing pre-pandemic 2019 levels by 21%. The record growth demonstrates the sector’s central role in the local economy, which includes providing 40,000 jobs.

As One Team, the City supports the creation and growth of small businesses through several services facilitated by the City’s Small Business Ally (SBA) program. Last year, the program assisted a record 3,000+ small business owners with step-by-step, bilingual assistance around city permitting, inspections, and business tax registration. The SBAs also helped restaurants open their doors faster with the City‘s Streamlined Restaurant Program. The expedited review process cuts time for the permitting of some tenant improvements in half, speeding up the process from 2-6 months to just 1-2. Nearly 100 businesses used the program last fiscal year, including Sumi Sushi, Tostadas, Sixth Street Burger, the Pressroom, Morning Lobby, and Chispiros Burritos & Tacos.

“Our local restaurants reflect the culture and character of San José. They bring people together, create a sense of place, and continue to be one of the biggest sources of vibrancy and vitality across every part of our city,” said City Manager Jennifer Maguire. “We’re proud of their resilience and partnership, and we remain committed to ensuring business owners have the support and clear permitting process they need to open their doors and thrive, fulfilling one of the City’s economic strategies of fostering small business resilience and creating thriving business districts.”

As the city and region prepare to welcome visitors from across the country and world for major sporting events coming to the Bay Area beginning in November with the National Women’s Soccer League Championship game, this moment provides a significant opportunity to showcase and provide further support to San José’s vibrant and diverse culinary scene.

“These numbers represent not just a comeback, but a culinary boom,” said Mayor Matt Mahan. “As one of the most diverse cities on earth, San José is where people bring the flavors of their hometowns and create something uniquely our own. That’s why we’re becoming a true food destination — just in time to step onto the world stage in 2026.”

San José’s reputation is bolstered by culinary accolades such as having five Michelin-recognized restaurants that reflect the city’s global flavors and innovation, whereas Alamitos Vineyards was named Best New Winery Experience in the USA by USA Today in 2023 and continues to earn top honors for its wines. Additionally, 10th Street Distillery brought home Best in Show at the 2024 Whiskies of the World competition for its STR Triple Cask (Dragon), earning the title of best whisky in the world. San José restaurants have earned multiple Wine Spectator awards, including Best of Award of Excellence distinctions for L.B. Steak, Vintage Wine Merchants, and Augustine, and Award of Excellence honors for Dry Creek Grill.

About the City of San José
With almost 1 million residents, San José is one of the most diverse large cities in the United States and is Northern California’s largest city and the 12th largest city in the nation. San José’s transformation into a global innovation center has resulted in one of the largest concentrations of technology companies and expertise in the world.

About the San José Office of Economic Development and Cultural Affairs
The San José Office of Economic Development and Cultural Affairs (OEDCA) is committed to a vital, competitive San José economy that increases prosperity for people and companies. OEDCA guides the city's economic strategy, provides assistance for business success, connects employers with trained workers, and provides art and cultural resources to our community. For more information, go to www.sjeconomy.com.

SOURCE: https://www.sanjoseca.gov/Home/Components/News/News/6970/4699