Satellite has lost its signal.
Satellite, a wine bar and vegan-focused restaurant, will close at 1117 State Street on Sept. 13, owner Drew Cuddy told the News-Press. The restaurant is attached to Kiva Cowork, a shared work space, and secured a nine-year lease for the site in 2016.
Cuddy announced the closure in a Sunday Reddit post, stating that Satellite has not been able to “find an agreement that works for both us and our landlords at Kiva.” Bad business because of a lack of foot traffic on State Street also contributed to the restaurant’s closure, he added in an interview.
“It’s been a real challenge to try and have two restaurants or two businesses under the same roof that have really different needs,” Cuddy said.
Kiva’s operating hours did not align with Satellite’s hours—creating a “stumbling block” for the businesses’ partnership, he said. While the coworking space is open from 9 a.m. to 5 p.m., Satellite sees more activity from 4 p.m. to 9 p.m.
After the restaurant closes on State Street, Cuddy said he will focus on maintaining Satellite’s operations at “The Factory,” an event space at 616 East Haley Street that people can rent out for programming such as weddings and wine-tasting sessions.
Both Satellite and Kiva agreed that parting ways was the best next step, said Kaleigh Bozick, community manager for Kiva Cowork, in an emailed statement from Kiva owner Sam Walters. Kiva plans to bring a new concept for the entrance area and create a venue for private events, she added.
“We fully support Drew and the Satellite team as they expand at The Factory on Haley Street, and we wish them continued success,” Bozick said. “These investments will provide a better experience for our coworking members and create an even more amazing venue for private events.”
Satellite serves farm-to-table food items, including salads, sandwiches and soups. It also hosts a wine club, offering a membership discount for natural wine and Satellite purchases.
Broader challenges downtown, such as a lack of housing, has made it more difficult for many businesses to see a steady flow of customers, Cuddy said.
“Downtown, it’s more like every day we open our doors at the same time and we close at the same time, and we just hope you show up,” he said. “You can’t have that and succeed in a place where fewer and fewer people live downtown.”
Beyond the closure
For nearly a decade, Satellite has served as a third space for locals, Cuddy said. He opened the restaurant on a whim, after dabbling in the wine-tasting business in Sonoma County and working in wine distribution.
“I was in between jobs, and I was kind of looking for something to do,” he said. “I fully took it on, full force.”
The restaurant survived State Street by adapting with the times, Cuddy said.
He pointed to the COVID-19 pandemic as Satellite’s “renaissance.” People flocked to the restaurant after the pandemic, in a search for a welcoming, open community space.
But for the past few years, he said, it’s become more stagnant.
“People have gotten more into their daily rhythm, and they stay closer to where they live,” Cuddy said. “People are suffering this very slow, quiet, optimistic but sad sort of economic situation.”
With one month left, Cuddy said he is looking to become more involved in local advocacy to improve business downtown. Satellite will continue its regular programming, including happy hour and magic shows on Fridays, music on Thursdays and spritz specials on Sundays.
Satellite also plans to hold a closing party before it moves out, Cuddy said.
“I don’t necessarily want to change anything about Satellite on the way out,” he said. “I just want to keep it being available for people to love and use, and experience just like they have been for the last many years.”
Cuddy said he is open to bringing Satellite back to downtown in the future, if the timing is right.
“It’s been a constant evolution and this metamorphosis, and I don’t know what type of butterfly we are now, but it feels really good downtown—like an amazing last month here,” he said. “We’re very excited to see the results of almost a decade of that location.”
