A notice posted on the door of the Embarcadero location at 525 E Harbor Drive listed the violation under "imminent health hazard," citing sewage discharge as the reason for the immediate shutdown. One witness at The Rady Shell for a concert that evening claimed the restaurant had been caught dumping sewage directly into San Diego Bay, prompting the swift health department action.
According to the Port of San Diego’s Public Information Officer, "The Port of San Diego’s Field Operations staff discovered a sewage leak at the Joe’s Crab Shack San Diego Bay location on Wednesday, August 6, 2025. The Port immediately directed the restaurant to stop work and cease and desist all discharges. This direction was followed up with a written citation issued to the restaurant. The violation was reported to the County of San Diego Department of Environmental Health and Quality, which subsequently ordered closure of the restaurant. To re-open the restaurant, the operator must complete repairs, and the County must conduct and complete a re-opening inspection per County requirements. The Port and County are continuing to closely coordinate and further investigate this violation. There currently is no water quality advisory, warning or closure posted for this area of San Diego Bay. The Port also notified CalOES, per state requirements."
The closure arrives less than three weeks before Joe’s was already set to close permanently after more than two decades of operation. The waterfront restaurant, located in the historic San Diego Rowing Club building just steps from The Rady Shell at Jacobs Park, had been scheduled to close between August 24 and 28 following years of declining revenue and a shift to a month-to-month lease in 2022. All 61 employees are slated to lose their jobs.
Joe’s Crab Shack first opened in Houston, Texas, in 1991, quickly expanding nationwide with its laid-back, beach-shack style and seafood-centric menu. Over the years, the chain changed hands multiple times and weathered several bankruptcies. It is currently owned by Landry’s, Inc., the Houston-based hospitality giant led by billionaire Tilman Fertitta, whose portfolio includes Bubba Gump Shrimp Co., Morton’s The Steakhouse, and dozens of other restaurant, hotel, and entertainment brands.
The restaurant occupies the historic San Diego Rowing Club building just steps from The Rady Shell at Jacobs Park and behind the San Diego Convention Center. Since 2022, the Port of San Diego has kept the business on a month-to-month lease while seeking a new operator to revitalize the high-profile but underperforming site.
Port officials confirmed they are in final lease negotiations with The Rustic, a Texas-based restaurant, bar, and live music venue, to take over the property. If approved, The Rustic plans a major remodel with an opening likely in 2026.
Founded in Dallas in 2013, The Rustic is known for its sprawling patios, family-style comfort food, and regular live music programming. The San Diego location would be its first in California, replacing a business that has anchored the bayfront since 2002 but has faced financial decline.
The Rowing Club building, which dates back to the early 1900s, was previously home to Chart House before Joe’s took over. While the location boasts a prime waterfront patio and boat dock, it also comes with challenges, including limited street visibility and constrained access.
In 2024, the Port received $118,000 in rent from Joe’s, down from $135,000 in 2019. Port leaders have said a new lease will bring in more revenue and better serve the area’s growing concert and tourism traffic.
Joe’s Crab Shack first opened in Houston, Texas, in 1991, quickly expanding nationwide with its laid-back, beach-shack style and seafood-centric menu. Over the years, the chain changed hands multiple times and weathered several bankruptcies. It is currently owned by Landry’s, Inc., the Houston-based hospitality giant led by billionaire Tilman Fertitta, whose portfolio includes Bubba Gump Shrimp Co., Morton’s The Steakhouse, and dozens of other restaurant, hotel, and entertainment brands.
The restaurant occupies the historic San Diego Rowing Club building just steps from The Rady Shell at Jacobs Park and behind the San Diego Convention Center. Since 2022, the Port of San Diego has kept the business on a month-to-month lease while seeking a new operator to revitalize the high-profile but underperforming site.
Port officials confirmed they are in final lease negotiations with The Rustic, a Texas-based restaurant, bar, and live music venue, to take over the property. If approved, The Rustic plans a major remodel with an opening likely in 2026.
Founded in Dallas in 2013, The Rustic is known for its sprawling patios, family-style comfort food, and regular live music programming. The San Diego location would be its first in California, replacing a business that has anchored the bayfront since 2002 but has faced financial decline.
The Rowing Club building, which dates back to the early 1900s, was previously home to Chart House before Joe’s took over. While the location boasts a prime waterfront patio and boat dock, it also comes with challenges, including limited street visibility and constrained access.
In 2024, the Port received $118,000 in rent from Joe’s, down from $135,000 in 2019. Port leaders have said a new lease will bring in more revenue and better serve the area’s growing concert and tourism traffic.
The sudden health-related shutdown leaves uncertainty over whether Joe’s will reopen for its planned final days or if August 8 marks the end of its run entirely. For now, the restaurant sits dark - its closure now tied not only to financial decline but also to a confirmed sewage violation - a premature and ignominious end to a 22-year chapter on San Diego’s bayfront.
Originally published on August 9, 2025.
