SEARCHING FOR A NEW LEADER. IN OLD SACRAMENTO, SOME BUSINESS OWNERS ARE REPORTING LOWER FOOT TRAFFIC AND SALES. HERE’S KCRA 3’S MARICELA DE LA CRUZ OLD SACRAMENTO’S QUAINT ENTERTAINMENT DISTRICT HAS LONG BEEN A DRAW FOR VISITORS. BUT FOR SOME BUSINESSES, 2025 HAS BEEN ONE OF THE MORE CHALLENGING YEARS. IT’S BEEN A TOUGH COUPLE OF LAST FEW YEARS FOR SURE, BUT I THINK THAT MOST BUSINESSES HAVE BEEN SAYING THAT STEVEN MANO, WHO OWNED A BUSINESS IN THE OLD SACRAMENTO DISTRICT SINCE 1977, SAYS A SERIES OF UNEXPECTED CHANGES HAVE TAKEN A NOTICEABLE TOLL, ESPECIALLY WITH RIO CITY CAFE CLOSING A COUPLE OF YEARS AGO AND EVANGELINE’S FIRE DISTRICT LEADERS ACKNOWLEDGED THE IMPACT, BUT SAY THEY’RE LOOKING AHEAD. RIO CITY CAFE THAT WAS DEFINITELY A HARD HIT FOR THE DISTRICT, BUT I THINK THAT THE CITY IS WORKING THROUGH SOME NEW IDEAS TO GET A NEW BUSINESS IN THERE AS QUICKLY AS THEY POSSIBLY CAN. CITY NUMBERS SHOW NINE NEW BUSINESSES OPENED IN OLD SACRAMENTO LAST YEAR, WITH JUST TWO CLOSINGS. FOOT TRAFFIC DIPPED SLIGHTLY FOR ABOUT SIX MONTHS IN 2025 COMPARED TO 2024. THE ECONOMY IS A LITTLE HARD. THIS LAST YEAR, WE DEFINITELY NOTICED THAT WE ARE RAMPING UP DIFFERENT MARKETING CAMPAIGNS, WAYS TO JUST GET THE LOCAL TRAFFIC BACK TO OLD SACRAMENTO TO SUPPORT OUR SMALL BUSINESSES. WHILE SOME, LIKE OLD TOWN TRAIN STOP, ARE MOVING ON IN 2026, WE DO A CLASSIC TASTING. NEW ENERGY IS ALSO MOVING IN AN EXCITING TIME BECAUSE WE’VE BEEN SELLING AT FARMERS MARKETS FOR THE LAST THREE YEARS, AND BEFORE THAT IT WAS JUST STRICTLY ONLINE. JANUARY IS TYPICALLY A SLOW MONTH, AND THIS YEAR DRY JANUARY IS ADDING ANOTHER CHALLENGE. THIS TREND THAT IS AFFECTING A LOT OF EITHER BARS OR WINE CONSUMPTIONS. I FEEL LIKE WE WON’T REALLY KNOW UNTIL MAYBE FEBRUARY. IN THE MEANTIME, YOU HAVE TO BE AN OPTIMIST IN ANY BUSINESS. LOCALS AND VISITORS CAN ENJOY THE HORSE DRAWN CARRIAGES, WOODEN SIDEWALKS AND BRICK STOREFRONTS THAT MAKE OLD SACRAMENTO UNIQUE. IT’S KIND OF HARD TO BE GRUMPY WHEN YOU RUN A CANDY STORE. AMONG SOME OF THE PROJECTS THAT THE CITY HOPES TO ATTRACT MORE PEOPLE INTO, OLD SACRAMENTO IS A NEW CHILDREN’S PARK, WHICH WAS JUST APPROVED LAST MONTH. CONSTRUCTION IS EXPECTED TO START IN THE SPRING. MARICELA DE LA CRUZ KCRA THREE NEWS. AND THE CITY SAYS THEY WILL TIME OUT THE WORK FOR WHEN IT W
Old Sacramento businesses face challenges amid changing landscape
Updated: 8:30 PM PST Jan 9, 2026
Business owners in Old Sacramento are facing reduced foot traffic and sales in 2025 due to a series of unexpected changes in the district.Stephen Minow, owner of Sacramento Sweets Co. since 1977, said, “It’s been a tough couple of last few years for sure, but I think that most businesses have been saying that, but we’re hanging tough, you know.” He noted the impact of the closure of Rio City Café and a fire at Evangeline’s, saying, “Especially with Rio City Café closing a few years ago, and Evangeline’s fire. They’re not going to be opening again, I don’t think until the Spring, but that should help us if those two anchors come back.”District leaders acknowledge the impact of these closures but are optimistic about the future. Chelsea Evans, Old Sacramento district manager, said, “Rio City Café was definitely a hard hit for the district, but I think that the city is working through some new ideas to get a new business in there as quickly as they possibly can. So, we’re just trying to build up the rest of the district in the meantime.”City data shows that nine new businesses opened in Old Sacramento last year, while only two closed. However, foot traffic dipped slightly for about six months in 2025 compared to 2024. Evans added, “The economy’s a little hard. This last year, we definitely noticed that. We are ramping up different marketing campaigns – ways to just to get the local traffic back to Old Sacramento to support our small businesses.”While some businesses like “Old Town Trainstop” are moving on in 2026, new ventures are also emerging. Feli Ortega of Felicita Wine Co. said, “It’s an exciting time because we’ve been selling at farmer’s markets for the last three years, before that, it was just strictly online.”January is typically a slow month, and this year, the “Dry January” trend is adding another challenge. Ortega said, “This trend that is affecting a lot of bars or wine consumption. I feel like we won’t even know until maybe February.”Despite these challenges, Minow remains optimistic. “You have to be an optimist in any business, it’s kind of hard to be grumpy when you run a candy store,” Minow said Locals and visitors can still enjoy the unique charm of Old Sacramento, with its horse-drawn carriages, wooden sidewalks and brick storefronts.A new children’s park was approved last month, with construction expected to begin in the spring. Sacramento city officials plan to time the work to minimize the impact on businesses in the district.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
Business owners in Old Sacramento are facing reduced foot traffic and sales in 2025 due to a series of unexpected changes in the district.
Stephen Minow, owner of Sacramento Sweets Co. since 1977, said, “It’s been a tough couple of last few years for sure, but I think that most businesses have been saying that, but we’re hanging tough, you know.”
He noted the impact of the closure of Rio City Café and a fire at Evangeline’s, saying, “Especially with Rio City Café closing a few years ago, and Evangeline’s fire. They’re not going to be opening again, I don’t think until the Spring, but that should help us if those two anchors come back.”
District leaders acknowledge the impact of these closures but are optimistic about the future. Chelsea Evans, Old Sacramento district manager, said, “Rio City Café was definitely a hard hit for the district, but I think that the city is working through some new ideas to get a new business in there as quickly as they possibly can. So, we’re just trying to build up the rest of the district in the meantime.”
City data shows that nine new businesses opened in Old Sacramento last year, while only two closed. However, foot traffic dipped slightly for about six months in 2025 compared to 2024. Evans added, “The economy’s a little hard. This last year, we definitely noticed that. We are ramping up different marketing campaigns – ways to just to get the local traffic back to Old Sacramento to support our small businesses.”
While some businesses like “Old Town Trainstop” are moving on in 2026, new ventures are also emerging. Feli Ortega of Felicita Wine Co. said, “It’s an exciting time because we’ve been selling at farmer’s markets for the last three years, before that, it was just strictly online.”
January is typically a slow month, and this year, the “Dry January” trend is adding another challenge. Ortega said, “This trend that is affecting a lot of bars or wine consumption. I feel like we won’t even know until maybe February.”
Despite these challenges, Minow remains optimistic.
“You have to be an optimist in any business, it’s kind of hard to be grumpy when you run a candy store,” Minow said
Locals and visitors can still enjoy the unique charm of Old Sacramento, with its horse-drawn carriages, wooden sidewalks and brick storefronts.
A new children’s park was approved last month, with construction expected to begin in the spring. Sacramento city officials plan to time the work to minimize the impact on businesses in the district.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter