The closure marks a notable moment for Urban Kitchen Group, the San Diego based restaurant company founded by longtime restaurateur Tracy Borkum. While the group continues to operate multiple concepts across San Diego and Orange County, the decision to exit Del Mar reflects the growing strain large format restaurants face in high rent coastal retail centers.
According to Borkum, the choice to walk away from the 8,200 square foot space was driven by a convergence of factors that became impossible to ignore. Since the Flower Hill center changed ownership in 2022, property taxes tied to the restaurant’s triple net lease reportedly increased dramatically following a reassessment of the property’s value. The center sold for approximately $200 million, nearly tripling its previous assessed valuation, a cost increase that was passed along to tenants.
Operating costs were compounded by the realities of the building itself. The aging two story structure required ongoing maintenance and capital investment, while sales at the Del Mar location never fully rebounded to pre pandemic levels. Though Cucina Enoteca remained busy at times, Borkum acknowledged that revenue at Flower Hill lagged behind the group’s other locations, making it increasingly difficult to justify the footprint.
The restaurant’s lease formally expired in late 2024. Rather than committing to a long term renewal, Urban Kitchen Group extended the agreement month to month while evaluating options. Ultimately, the numbers did not align. In filings submitted to the state, the company disclosed plans to lay off 43 employees in connection with the closure.
When Cucina Enoteca first opened, it represented a confident bet on North County’s growth and Del Mar’s appetite for ambitious, design forward dining. The concept combined Italian influenced cooking, an expansive wine program, and a retail component under one roof, helping establish Flower Hill as a dining destination rather than a convenience center. Over time, however, the economics that once supported that vision shifted.
The closure also fits within a broader pattern playing out across San Diego County. Rising labor costs, higher food prices, softer consumer spending, and intensified competition have forced operators to reassess what size and scale actually work in today’s market. Large, high overhead restaurants that once thrived on volume are now among the most vulnerable, particularly under triple net leases where tax increases and maintenance costs fall directly on tenants.
Urban Kitchen Group has emphasized that the Del Mar exit does not signal a retreat from North County. Borkum has indicated she is actively searching for a new location in the area, potentially smaller and more efficient, and not limited to coastal submarkets. For now, the company’s focus remains on its existing portfolio, including Cucina Urbana in Bankers Hill, Cucina Enoteca locations in Newport Beach and Irvine, Gold Finch Modern Delicatessen, Artifact and Craft Café at the Mingei Museum in Balboar Park, The Kitchen at MCASD in La Jolla, Morena Provisions, and Urban Kitchen’s operations at The Rady Shell.
For Del Mar, the impending closure leaves a significant vacancy in Flower Hill Promenade, one that will likely require rethinking given the size and configuration of the space. Industry observers have noted that the building may be too large for most modern restaurant concepts without subdivision or redevelopment.
Cucina Enoteca Del Mar’s final weeks are expected to be both reflective and bittersweet. In a statement shared with guests, Borkum thanked the Del Mar community for more than a decade of support and praised the staff who brought the restaurant to life day after day. Diners are encouraged to return before closing to celebrate the memories made inside the space.
The closure also fits within a broader pattern playing out across San Diego County. Rising labor costs, higher food prices, softer consumer spending, and intensified competition have forced operators to reassess what size and scale actually work in today’s market. Large, high overhead restaurants that once thrived on volume are now among the most vulnerable, particularly under triple net leases where tax increases and maintenance costs fall directly on tenants.
Urban Kitchen Group has emphasized that the Del Mar exit does not signal a retreat from North County. Borkum has indicated she is actively searching for a new location in the area, potentially smaller and more efficient, and not limited to coastal submarkets. For now, the company’s focus remains on its existing portfolio, including Cucina Urbana in Bankers Hill, Cucina Enoteca locations in Newport Beach and Irvine, Gold Finch Modern Delicatessen, Artifact and Craft Café at the Mingei Museum in Balboar Park, The Kitchen at MCASD in La Jolla, Morena Provisions, and Urban Kitchen’s operations at The Rady Shell.
For Del Mar, the impending closure leaves a significant vacancy in Flower Hill Promenade, one that will likely require rethinking given the size and configuration of the space. Industry observers have noted that the building may be too large for most modern restaurant concepts without subdivision or redevelopment.
Cucina Enoteca Del Mar’s final weeks are expected to be both reflective and bittersweet. In a statement shared with guests, Borkum thanked the Del Mar community for more than a decade of support and praised the staff who brought the restaurant to life day after day. Diners are encouraged to return before closing to celebrate the memories made inside the space.
Cucina Enoteca Del Mar is expected to serve its final guests in mid March 2026 at 2730 Via De La Valle Suite 1906 in San Diego's North County city of Del Mar. For more information, visit urbankitchengroup.com/cucina-enoteca-del-mar.
Originally published on January 15, 2026. Information originally published by Lori Weisberg of San Diego Union-Tribune.
