The Waterfront Bar & Grill at 2044 Kettner Boulevard in Little Italy was ordered closed on March 25, 2026, after a routine county health inspection documented a major vermin violation. The bar reopened the same day after remediation, with co-owner Chad Cline confirming to SanDiegoVille that the establishment “has since been cleared and is back open following remediation efforts and compliance with county requirements.”
For anyone who has spent time in San Diego’s bar scene, the Waterfront needs no introduction. For anyone evaluating a restaurant or bar acquisition, the inspection history behind this closure tells a more useful story than the headline.
92 Years on Kettner Boulevard
The Waterfront opened on December 5, 1933, the day the 21st Amendment took effect and Prohibition ended nationwide. Its co-founders were Clair John Blakley and Chaffee Grant, a grandson of President Ulysses S. Grant. The Grant family had relocated to San Diego in 1893, and Grant’s father, Ulysses S. Grant Jr., was a major real estate developer who built the U.S. Grant Hotel downtown. Chaffee served as a silent partner in the bar because, even after repeal, anything tied to alcohol carried social stigma among the post-Prohibition set.
The bar holds what is widely recognized as San Diego’s oldest continuous liquor license, a Type 48 on-sale general license issued at repeal. When it opened, Little Italy was the tuna capital of the world. More than 6,000 Italian families had immigrated to the neighborhood to work the fishing industry, and Sicilian fishermen would mend their nets on the sidewalk outside the Waterfront before heading in for drinks and cigars. The bar served as a gathering point for the Italian and Portuguese crews who manned the tuna fleets anchored at the nearby Embarcadero.
The Nichols and Cline family has controlled the bar since the 1960s, when patriarch Melvin Miller acquired it. Today, his great-grandsons Chad Cline and Jason “Rocky” Nichols run the operation, along with a growing portfolio that includes Aero Club, Sycamore Den, Werewolf, Harbor Town Pub, and several other San Diego bars. In January 2026, the pair acquired the former Fluxx nightclub space in the Gaslamp, adding another liquor license to their holdings.
What the Inspection Actually Found
The March 25 inspection by the County of San Diego Department of Environmental Health and Quality cited the Waterfront for a major vermin violation, along with minor violations related to food contact surfaces, toilet facilities, premises and exclusion measures, and floors, walls, and ceilings. A major vermin finding triggers automatic closure regardless of the overall score because it cannot be corrected on the spot.
County records show this was not the first vermin finding, with minor violations documented in May 2024 and May 2025, both of which resulted in “A” grades after compliance. Toilet facility issues have recurred since at least 2023, and the March 2026 incident marked an escalation from minor to major classification, which is what triggered the closure order.
The same-day turnaround was fast even by local standards, with a separate site investigation later on March 25 marked “Complete” with “No Violations Found,” indicating the remediation satisfied inspectors within hours. The Waterfront was one of 13 restaurants ordered closed in San Diego County during the week of March 20-26, with vermin being the most common cause across the group.
Why Inspection History Matters in a Deal
San Diego’s restaurant grading system gives 99% of restaurants an “A” grade, which makes the letter grade itself almost meaningless as a due diligence tool. The actual inspection reports, including the specific violations and whether they recur, carry far more weight.
For buyers evaluating a restaurant or bar acquisition in California, health inspection history is public record and searchable through the county’s online system. A single closure does not necessarily kill a deal, but a pattern of recurring violations raises real questions about whether there was a standing pest control contract, whether the building infrastructure is creating conditions that attract vermin, and whether the floors, walls, and drains are in a condition that would pass a change-of-ownership inspection.
That last point matters more than most buyers realize because change-of-ownership inspections in California apply higher standards than routine inspections. They require code-upgrade compliance, including three-compartment sinks, mop sinks, hand sinks, proper floor drains, and smooth, washable surfaces on walls, floors, and ceilings. A bar that passes routine inspections with minor violations may still face significant remediation costs when ownership transfers. The seller is typically responsible for clearing all items before escrow closes, but if they refuse, the purchase price adjusts downward for an as-is sale.
The Broader Picture
The Waterfront is not in any danger of closing permanently. It has survived the transformation of Little Italy from a working fishing village into one of San Diego’s trendiest neighborhoods. Developers built condos around it rather than demolishing it, and it still serves approximately 4,000 pints a week and celebrates its birthday every December 5 on Repeal Day. A patron named Howard Bass loved the place so much that his ashes sit in an urn on a shelf behind the bar.
But the story illustrates something every buyer should internalize before making an offer on any restaurant or bar. The public-facing grade on the window tells you almost nothing. The actual inspection reports, the recurring patterns, the building conditions, and the gap between routine and change-of-ownership standards tell you everything you need to know before making an offer.
Source: SanDiegoVille, SanDiegoVille Weekly Closures, San Diego Magazine
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