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Customers of Doña Esther’s Mexican Restaurant took to Facebook on Oct. 13 to share the stunning news the staff had given them that day: The iconic San Juan Bautista restaurant will close on Oct. 31.
According to several employees, owner Tami Castañeda-Huaracha informed them on Oct. 11 of her decision to shutter the business after 42 years of anchoring San Juan’s historic Third Street district. Affectionately known by locals as “Doña’s, the restaurant was founded by Al Castañeda in 1982 and has been run by Castañeda-Huaracha, his daughter, since his retirement in 2015.
Barbara Gonzalez has owned Visions, a business neighboring Doñas, for 35 years. She said that considering the economic times, the Castañedas should be proud of all they had accomplished with their business.
“They always made you feel like family when you ate there,” she said. “They were so personable, and their love for the town was there—and it showed. They have benefited our town in many ways and will be greatly missed.”
The walls of Doña Esther’s are a tribute to the generosity of the Castañedas, with framed certificates of appreciation from charitable organizations and civic groups scattered throughout the rooms. They serve as testimonials to the family’s love of the town as well, with photographs and paintings that reflect its history and culture.
In an interview just before she decided to close the business, Castañeda-Huaracha said that changes in tourist traffic and local demographics were hurting Doñas.
“There’s just is not enough foot traffic in our beautiful little town,” she said. “We don’t have the same customer base that we used to, which was older people who have been coming for 30 or 40 years. We used to be just one big happy family when San Benito County was not as separated.”
Castañeda-Huaracha said another issue was the county’s shift to being more of a commuter community, and that the time spent on the road coming and going from work has made it harder for people to fit trips to local restaurants into their weekday schedules
“What I have learned,” she said, “is that most commuters continue to shop in their old haunts. They still go to the same restaurants where they work as a matter of convenience. Their hard-earned money is not necessarily being spent in the communities that they live in.”
Castañeda-Huaracha said that she has made many trips to City Hall, as well as City Council and Planning Commission meetings, trying to raise awareness on issues creating problems for downtown businesses.
“When I walk to City Hall, I’m almost positive they say, ‘Lock the doors, Tami’s coming.’” she said. “But I think that after 42 years, I have a little insight into what’s happening here. Our two business organizations are pitted against each other, which is ridiculous. And we’re being taxed to death.”
Among the yearly taxes Castañeda-Huaracha says she must pay are tourism fees based on annual sales, equipment fees, and a fee for operating in the Historic District.
“So I went to City Hall to ask. “Hey, you guys have got to help out here a little bit,’” she said. “And do you know what our city hall people said to me? ‘We provide $20,000 a year to do advertising.’ I almost wanted to laugh in their faces. Because $20,000 in this day and age goes nowhere.”
Making matters worse, Castañeda-Huaracha said the money is doled out at $5,000 every three months, which is not nearly enough for an effective effort.
“It is disheartening because 70% of people who have lived in Hollister for only seven or eight years have never been to San Juan Bautista,” she said. “The powers here in San Juan are not spreading the news. Hollister’s real estate agents are not given information to pass on to clients about this area.”
Castañeda-Huaraca said the lack of visitors to San Juan creates a ripple affect that effects all the businesses there.
“I don’t have the customer base,” she said, “I can’t promote. And if I can’t promote, I can’t help bring more people to town. How do we get out of that? Who has a secret ingredient for it? It will take a village to make this village exist again.”
Castañeda-Huaraca said another problem is the constant influx of chain stores and restaurants crushing family-owned and independent businesses.
“A good friend of mine said, ‘Big business is finally getting their dreams come true,’” she said. “‘They are X-ing out all of our small businesses.’ And that’s okay—if that’s what this nation wants, then they’re heading on the right path.”
During the interview, Castañeda-Huaraca expressed a prophetic concern about being able to stay in business.
“I don’t know how much longer,” she said. “I was on a shoestring budget in June, July and August. That’s where I’m at right now. I had to bring down my hours again. Why? I’m not generating enough revenue to allow me to keep the doors open.”
The announcement of Doña Esther’s closure is another blow to the economically beleaguered tourist town. It closely follows The 18th Barrel’s last night of business on Sept. 15 and the Sept. 1 move of Doña’s across-the-street neighbor, JJ’s Burgers, forced by rent increases to relocate to its current place at 300 Third Street.
Castañeda-Huaraca could not be reached for further comments.
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