El Segundo, a small city near Los Angeles, is emerging as a new hub for upscale dining. The number of high-income residents has risen since the listing of space and aerospace company SpaceX, and the local commercial landscape is shifting with it. The trend contrasts with restaurant closures elsewhere in Los Angeles, where many operators are struggling.
El Segundo is a city of about 17,000 people, according to the New York Post and other foreign media outlets on the 21st. Located near Los Angeles International Airport, it has long been known as a center of the aerospace industry. More recently, a string of upscale restaurants, wine bars and pizza specialists have opened, drawing attention to the city as a new dining destination in Southern California.
The shift is attributed to SpaceX's initial public offering. The company listed on the Nasdaq on June 12. Foreign media estimated that about 4,000 current and former employees became millionaires through the process. Many of them are said to have ties to El Segundo and nearby areas.
SpaceX has moved its headquarters to Starbase, Texas, but still operates large facilities in Hawthorne, which borders El Segundo. About 100 small and mid-sized space and aerospace companies are based in El Segundo. According to local authorities, those companies have recently attracted $6 billion in venture investment.
Changes are also visible in the restaurant industry. EZPZ, a pizza specialist that opened in June, serves New York Brooklyn-style pizza. It also sells premium California-sourced ingredients and organic soft-serve ice cream.
Vinoteca, a natural wine bar, has opened inside Blum, a wine and flower shop near Pacific Coast Highway. It serves simple dishes such as vegetable platters and charcuterie — cured, smoked or dried meat products — alongside a curated wine selection. Julia Blum, a sommelier and co-founder of Blum, told SFGATE that she saw a need for a space where people could experience a range of wines.
Popular Los Angeles restaurant operators have also moved in. The wine bar Barsha and the Japanese-style pasta specialist Unico have opened. HomeState, known for its breakfast tacos, opened a location in September at The Point, an open-air shopping center.
Jackson Kalb, a chef who opened the Italian restaurant Jame Enoteca in 2018, added the Mexican restaurant Jaime Taqueria last year. Kalb said the more good restaurants there are, the more the entire area benefits. He said he has expanded his space three times since opening his first restaurant in El Segundo.
One variable is that demand rests heavily on high-earning employees. Share sales by existing shareholders are also still scheduled, and some observers say it is uncertain how long local spending power will hold up.