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After 12 years in downtown Mountain View, Steins, a beloved beer garden that spearheaded the creation of Mountain View Oktoberfest, will pour its final brew on March 30.
“It happens to be our anniversary weekend, so it seems a little poetic,” said Ted Kim, founder of Steins Beer Garden.
Since the pandemic, business has been difficult for Steins, Kim said. Expenses – like labor, cost of goods, rent and utilities – continued to increase while revenue decreased. Foot traffic in downtown Mountain View has considerably declined post-pandemic, with high vacancy rates disincentivizing people visiting downtown and work-from-home initiatives decreasing the lunch crowd, Kim noted. Additionally, tech layoffs and reductions in corporate spending have decreased the amount of corporate catering and parties.
“Last year we saw one of the lowest revenue years that we’ve had since we’ve opened, so things are just going in the wrong direction,” Kim said.
The size of Steins, at a whopping 12,000 square feet, has been working to its detriment, according to Kim. With a space that size, labor costs are incredibly high, punctuated by rapidly increasing minimum wage, he said.
“Labor has been the number one issue for us because we’re so large that even if no one shows up or it’s super slow, I still need a large staff,” he said.
When Steins opened in 2013, Mountain View minimum wage was $7.80 an hour, compared to $19.20 now.
“For most restaurants, it’s almost an automatic thing: Come January, you’re going to raise prices again, because you have to be able to pass along the cost, even if by a little bit,” Kim said.
As labor becomes more expensive, business owners must come up with solutions to make the business sustainable, Kim said. He implemented a Mountain View living wage surcharge to offset his labor costs, cross-trained staff and gave preferred shifts to stellar employees. He even considered implementing a table tablet ordering system, but ultimately decided it would remove the personal touch that was intrinsic to Steins.
“It’s this vicious circle that I think is just a losing endeavor for everybody, like a lose-lose proposition,” Kim said. “You raise the minimum wage to create a better, more affordable living, but by doing that, you’re also increasing the cost of everything around you, so are you really making a living wage?”
Kim believes that small restaurants in larger spaces like his are not sustainable in the Bay Area, and that only giant companies with deep pockets will be able to maintain these businesses. He thinks that smaller eateries will either have to be quick-service or fine dining, both of which require less labor.
Beer consumption per capita in California has decreased since Steins’ founding in 2013, according to data collected by the California Department of Tax and Fee Administration, but Kim doesn’t think this has played much of a role in declining sales. He also does not believe the opening of Eureka!, a neighboring restaurant that also specializes in craft beer, played a role in lower revenue. More thriving businesses downtown mean more potential customers for all businesses, he said.
“Pre-COVID, we were using all four bar wells to try and support the restaurant when it was like on a busy Friday night,” he said. “These days on a Friday we’ll open up two.”
Expect a lot of promotions, all-day happy hour deals and ultimate last calls as Steins tries to deplete its inventory, Kim said. Additionally, Kim has 3,000-4,000 Mountain View Oktoberfest- and Steins Beer Garden-branded steins and boots sitting in storage after preordering glassware for this year’s Mountain View Oktoberfest, whose future remains uncertain.
Steins hosted the first Mountain View Oktoberfest in 2013, alongside the now-closed Tied House Brewery and the Mountain View Chamber of Commerce. Kim pitched the idea and has since spearheaded the annual event, which took a two-year hiatus during the pandemic.
“It’s a shame, because this year would have been our 10th anniversary,” he said.
Kim isn’t sure what the future holds for Mountain View Oktoberfest, but he hopes another Mountain View business will be able to continue his legacy in collaboration with the Chamber of Commerce.
Despite the upcoming closure, Kim has no regrets. “Opening Steins was always my dream,” he said.
A Sunnyvale native, Kim spent his early career in corporate in Los Angeles. While he wasn’t particularly fond of working in corporate, one bright spot was the existence of Yard House in Pasadena.
“I fell in love with it,” he recalled.
Kim asked the Yard House CEO to create a franchise in the Bay Area, something the company was not yet interested in. Undeterred, he decided to open his own craft brewery in the Bay Area.
“The initial plan for Steins was not to be a massive restaurant,” Kim said. “It was just to be a small little bar that had some bites, but a really good craft beer list, maybe 10 beers on draft.”
After two years of searching for a 4,000- to 5,000-square-foot home for Steins in Cupertino, Menlo Park and Campbell and continuing to strike out, he decided to broaden his search.
“When we came across this space, we just decided, if we’re gonna swing for the fences, let’s try and hit a home run,” he said.
Kim is now focusing on a new healthy quick-service food concept that he expects will launch in a year or so in the Bay Area.
“Taking in everything that I’ve learned through this experience, it has to be quick-service,” he said. “So I think the business model that we’ve created for the healthy food concept is a model that would work in California, in the Bay Area. This is my home. I’d prefer not to leave, if possible. We’ll do our best to make it work in the Bay Area.”
As for Steins, it won’t be making a comeback in the Bay Area, but Kim is open to the idea of creating a Steins in Texas or Arizona down the line.
“Even though we’re closing, I look back at the 12 years that we’ve been around, and I’m glad we did it,” he said. “I’m glad that we’ve been able to have a positive impact on the community, and it’ll be sad to go.”
Steins Beer Garden, 895 Villa St., Mountain View; 650-963-9568, Instagram: @steinsbeergarden. Open Monday to Wednesday from 3-9 p.m., Thursday from 11:30 a.m. to 9 p.m., Friday from 11:30 a.m. to 10 p.m., Saturday from 10 a.m. to 10 p.m. and Sunday from 10 a.m. to 9 p.m.
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Sad to see them close. We really need to take a look at why we’ve got so many empty storefronts in MV and get something done to change the trajectory or redevelop these spaces.
It’s not complicated. The cost of running a business here is very high, and the prices businesses need to charge are more than people are willing to pay.
I’ve lived here since 1998, and all the places on Castro St which don’t own their location and have to rent, have been going out of business and being replaced by more expensive things.
It sounds nice to force businesses to pay for insurance and higher wages and whatnot, but the other side of that equation is that you’re paying $30 for a burger or $15 for a pint of beer to pay for all that. Not everyone makes enough to pay those prices.
Our business permitting is nuts too. Why does the city get to decide who opens what kind of business in each location? If a business is legal, it should be allowed without fuss. Also, classifying older buildings which were built quickly and cheaply 80 years ago as “historic” to avoid development is silly.
The last line says it all
“As for Steins, it won’t be making a comeback in the Bay Area, but Kim is open to the idea of creating a Steins in Texas or Arizona down the line”
Raising Minimum wage is great….until you lose your job. People were open to working for less, but the guvmint said “no way, you listen to us! We are smarter than those people.”
And now they’re without a job and no one wants to rent out that massive space.
Reap what you sow City Council!
https://www.svvoice.com/minimum-wage-goes-up-in-silicon-valley/
Extremely sad news. It should be clear that closing down vehicle traffic into Castro Street has been CATASTROPHIC for businesses. All the empty store fronts are clear evidence. MV needs to get rid of all councilmen who supported the closing of vehicular traffic and immediately restore Castro back to pre-covid traffic.
Always sad when a business closes but Stein’s has always been on the wrong end of the “good for the price” spectrum. “we serve craft beer” does not a successful business make. Fortunately we have multiple excellent beer gardens downtown to continue the tradition and potentially host Oktoberfest!
“Maybe in Texas or Arizona” is the biggest clue here. We’ll miss you, enjoy your “friendly to business but hostile to workers and the marginalized” business success in a red state!
It’s also sad that Tom R has apparently not been downtown since Castro st closed or he could see how busy it is! “Nobody goes there anymore, it’s too crowded” is supposed to be a joke not a mantra.
Sad. We need to freeze all city staff and council salaries until the business vacancy rate drops below area median
Isn’t there a federal government you could be ruining with brilliant ideas like that
Whatever. Next time I want to try a new restaurant, I’ll be taking a train to RWC. The economy is fine. Mtn View city policies are the issue
Best of luck Mr Kim! Thank for your contributions to the community. We will miss you and Steins!
Ha, they opened the same month I landed here. So many years of meals and events there. Was a good run. Always thought that space was too big. I’d love to see a multi-restaurant concept in that space similar to what they did in Downtown Los Altos in that one multi-restaurant spot. Anyway, great food, great times, onward to the next.