Downtown Oakland struggles force closure of popular wine bar Coco Noir

Despite Oakland's growing reputation as a destination for food and culture, a slow economic recovery in the city's downtown is continuing to take a toll on small businesses.

According to a report from commercial real estate firm Cushman and Wakefield, about 38 percent of downtown Oakland office space sat empty in the first quarter of the year. That lack of workers and visitors has created significant challenges for businesses that rely on steady foot traffic.

Among them is Coco Noir, a wine shop and bar that will soon close its doors after three and a half years in business.

"I have to close the doors on July 5. I cannot sustain it anymore. Downtown right now, very low foot traffic," said owner and sommelier Alicia Kidd.

Oakland has earned national recognition for its food scene, with Condé Nast Traveler magazine naming it the best food city for the past two years. Still, business owners said downtown has struggled to draw consistent crowds.

Kidd, an Oakland native, said she worked long hours and tried creative ways to bring people in, but it wasn't enough to overcome the broader economic challenges.

"I can only throw so many events. It's dead downtown. We have to get more foot traffic. We have to create more engagement," she said. "I had plans. I wanted to do something with the World Cup, meaning host block parties. I had big plans. But if I'm not able to sustain and get support from my city. Retention, we need retention programs from our city."

Business owners said the absence of office workers and tourists has forced them to rely heavily on a smaller base of loyal customers.

Some describe the current conditions as a lingering "pandemic-era economy," and are urging city leaders to invest more in events and initiatives that attract visitors.

"The city of Oakland, I feel, is losing a gem," Kidd said. "This business is more than wine. It's about community. It's about the jobs."

City officials acknowledged the challenges, but said progress is being made.

Councilmember Carroll Fife said while crime has decreased significantly, public perception has yet to catch up.

"It is not the role of government to subsidize a private business, right? We have our own internal challenges that we're working through with the City of Oakland," Fife said. "I want all businesses to thrive. And at the same time, it's difficult to make sure every single business that goes into becoming an entrepreneur is a successful entrepreneur. What we're doing is partnering with the Chamber. We're partnering, as City of Oakland, with other organizations like Visit Oakland to bring attention to the businesses."

Mayor Barbara Lee struck a similar tone, emphasizing both the city's difficulties and its potential.

"Yes, we have our challenges, but we also have our opportunities," Lee said. "So I'm trying to get people to understand that we've got to do both, deal with the challenges, but also have a vision and know that the opportunities are vast and great."

For Kidd, however, that vision will no longer include Coco Noir.

"I'm just really, really sad about this," she said. "You have to remove emotion. You have to look at your business. And for myself and for my sanity, I just want to be at peace."

Coco Noir's final day of business will be on July 5. Kidd said she hopes to serve her loyal customers one last time before taking a break to reassess her next steps.