Demolition Begins On Historic Former Captain Keno’s Site In San Diego's North County To Make Way For Mixed-Use Development

The building that housed one of North County's most storied dive bars, Captain Keno's Bar & Restaurant, is now being demolished to make way for a large-scale mixed-use development, officially closing the book on a 54-year chapter of Leucadia history.

Captain Keno's was more than just a late-night stop for cheap drinks and hearty, no-frills meals - it was an institution. Opened in 1970 by Gerry Sova, who famously used winnings from a keno game in Las Vegas to fund the venture, the establishment quickly became a local in Encinitas. In its earliest days, Sova ran the restaurant himself, cultivating a loyal customer base that would span generations. Over time, the space took on the role of a community clubhouse - a place where fishermen rubbed elbows with surfers, retirees drank alongside rockers, and visitors from out of town got a taste of old-school Encinitas hospitality.

The charm of Captain Keno's was rooted in its resistance to change. With its low lighting, wood-paneled walls, sticky floors, and iconic red leather booths, the interior remained largely untouched over the decades, a nostalgic time capsule amid a rapidly gentrifying coastline. The menu was equally stubborn in its affordability - breakfast specials ran under $5, and stiff well drinks could be had for pocket change.

The property was sold in 2021 to local developer Adam Robinson and RAF Pacifica Group for a reported $10.5 million. Demolition has now begun to make room for the Moonlight Mixed-Use Project, a redevelopment plan that includes 45 condominiums - some designated as affordable housing - and 14 commercial spaces, including a new restaurant and bar. While the transformation represents a significant shift for the neighborhood, the developers have committed to preserving elements of the original brand. Captain Keno’s liquor license and name were acquired in the sale, and the new restaurant will incorporate features from the original space as a tribute to its legacy.
That legacy will also live on just down the road, thanks to professional surfer and Encinitas native Benji Weatherly. A regular at Captain Keno’s throughout his youth, Weatherly recently acquired several items from the shuttered establishment - including the famed red booths - with plans to integrate them into his own upcoming Hawaiian-themed restaurant in Leucadia. The venture, still in development but set to open this summer, is intended to honor the laid-back spirit and unpretentious energy that defined Keno’s for more than five decades. 

Following the closure in October 2024, loyal patrons flocked to Captain Keno's for one last drink and a chance to take home pieces of memorabilia - barstools, light fixtures, even framed photos from the walls - eager to preserve their personal connections to a place that had become woven into the cultural identity of North County.

Though the building is now being leveled, many hope the spirit of Captain Keno’s - egalitarian, rough around the edges, and defiantly local - will carry on. Whether through Weatherly’s new restaurant or a future iteration of Keno’s under the mixed-use project, the essence of this beloved neighborhood dive may yet live on, even as the physical structure fades into memory.

Originally published on June 30, 2025. Photo from @encinitaskeepinitreal