A high-class restaurant and furniture gallery concept could come to an empty corner of downtown Los Gatos.
The Planning Commission unanimously voted Wednesday to recommend granting a conditional use permit to RH, a luxury home goods company with plans to open a restaurant and gallery at 31 University Ave. The Corte Madera-based company — known for its luxury furniture and interior design work that it pairs with fine dining — would fill the vacant 15,957-square-foot space that previously housed Steamer’s The Grillhouse and Gap in Old Town.
Commissioners also voted 4-1 to allow RH’s proposed changes to the existing building facade. The changes would modify the facade, which looks like three buildings, to one continuous building. Commissioner Susan Burnett voted no because she said she wanted to keep some of the charm of the existing facade. The development has to go before the Town Council for final approval.
Commissioner Steve Raspe said RH, which has a gallery location on North Santa Cruz Avenue and was previously known as Restoration Hardware, is a good fit for the building that has had vacancies since 2023. He said it would increase the draw of Old Town, which is owned by the same company that owns Santana Row, Federal Realty.
“I think it’s clear that this facility, including the restaurant… is going to be a large add to the public convenience and welfare of Los Gatos,” Raspe said at the meeting. “It’s going to create a destination for eating, for shopping (and) create foot traffic.”
The recommendation comes after the Historic Preservation Committee chose not to support changes to the project’s facade and architecture in March. The project falls in a historic district, even though it’s not changing a historic building. The committee was concerned about how the architectural changes could affect the corner’s charm.
RH Chairman and CEO Gary Friedman said a large focus of the project is the architecture, adding his team has worked diligently to ensure the project aligns with the small town’s character. He said the company doesn’t build retail stores, but inspiring places.
“We just would love to be here and we will do something, I think, that will make the community proud,” he said at the meeting.
If the dual gallery-restaurant concept is approved, it could bring significant revenue to the town. An RH restaurant brings in an average of more than $10 million a year, which boosts sales tax revenue, according to a letter supporting the project from the Los Gatos Chamber of Commerce.
Chamber CEO Jennifer Lin said Los Gatos is already known as a destination for design and food, and this project will only improve the town’s character along with its economy and foot traffic.
“To have a gallery restaurant choosing to locate here, just really further validates that identity and that reputation,” she told San José Spotlight. “I really feel like we’re experiencing a culinary renaissance here. And (RH) is just another jewel in the crown to be able to show that off.”
The local business community is looking forward to RH’s plans.
Muna Ahmed, an employee at Massei Construction across the street from the proposed project, said she’s glad the space may no longer be vacant because there are already multiple vacancies nearby. She said her team often took clients to Steamer’s, which closed in December after 45 years, and this project would add a needed high-end restaurant to downtown.
“This place is always happening,” she told San José Spotlight. “They make a lot of money over here.”
Contact Annalise Freimarck at [email protected] or follow @annalise_ellen on X.
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