Harley Gray Kitchen & Bar closed its doors in Mission Hills on Friday, December 19, 2025, ending a 12-year run at 902 West Washington Street. The closure, first reported by SanDiegoVille, was not the end of the corner. Across the street, Merritte and Hailey Powell, the husband-and-wife team who own La Puerta in Mission Hills, have filed a liquor license application for the Harley Gray space and are preparing to launch a new restaurant and bar concept in its place. Here's what's known so far, what to expect, and why this takeover matters for Mission Hills dining.
Harley Gray's 12-Year Run in Mission Hills
Harley Gray opened in 2013 and became one of the reliable Mission Hills restaurants along Washington Street, the kind of neighborhood American kitchen that locals booked for birthdays and brought visitors to when they wanted somewhere comfortable and not crowded. The closure is part of a wider wave of San Diego restaurant closures in recent months that includes Barrel & Board in Hillcrest, Chocolat and Breakfast Republic in Hillcrest, Barrio Star in Bankers Hill after 17 years, and Harley Gray itself in Mission Hills. Restaurateurs and industry observers have pointed to climbing rents, minimum-wage increases, lawsuit exposure, and the cumulative costs of California restaurant compliance as the reasons for the closure wave. The good news for Mission Hills locals is that the Washington Street corner isn't going dark.
What's Coming to 902 W Washington Street
The new concept is from Merritte and Hailey Powell, who already run La Puerta, the Mexican restaurant that opened its Mission Hills location in 2021 on the same block. The Powells' new restaurant at 902 W Washington isn't a La Puerta expansion. It's a fresh concept, and according to reporting from WhatNow San Diego, they plan to open for seven-day-a-week service including a mix of casual and more elevated dishes. Specific menu details and the restaurant's name haven't been announced publicly yet. The liquor license application is the strongest public signal that the project is moving forward, and the Powells' existing relationship with Mission Hills makes this a low-risk bet for the neighborhood, they already know the block, the foot traffic, and the regulars.
Why the Powells' Takeover Matters for Mission Hills Dining
La Puerta has been one of Mission Hills' more popular casual restaurants since it opened, and the Powells have built a reputation for running tight kitchens with consistent service. Adding a second concept directly across from their existing restaurant gives them something close to a two-restaurant block on Washington Street. For Mission Hills dining, that's unusual. Most restaurateurs who succeed in the neighborhood stay in one building and don't try to own a corner. The Powells clearly see something in the foot traffic at Washington and Goldfinch that makes the second space worth the risk.
The corner also sits close to Communion Mission Hills at The Sasan, Jo's Diner, The Red Door, and Wolf In The Woods, all of which anchor the Washington Street Mission Hills dining corridor. Adding a new concept in the old Harley Gray space is the kind of move that keeps the Washington Street block lit up through the back half of 2026, even as other Uptown corners are dimming.
What Happens Next
The liquor license process takes a few months and renovations on the space will likely add more. No opening date has been announced publicly. In the meantime, La Puerta across the street is still running full service seven days a week. If you want to support the Powells while they prepare the second concept, that's the easy answer. And if you want to see what the rest of the Mission Hills dining scene looks like in 2026, San Diego Lineup's full Mission Hills guide covers every restaurant, bar, and coffee shop in the neighborhood.
We'll update this post as the Powells announce the new restaurant's name, opening date, and menu direction. For a broader look at what's happening across Uptown right now, see our guide to the Hillcrest neighborhood and the best restaurants in Mission Hills and Hillcrest.
