Not Just Coffee: A Third Space for San Pedro Locals
Elisa Palacios said the idea for Sunken City Coffee began while working remotely and struggling to find a quiet space to focus.
“I get distracted very easily,” she said. “I loved Sacred Grounds, but I wanted to move around sometimes so it didn’t feel like the same day over and over again.”
Incidentally, Sunken City Coffee opened the same week Sacred Grounds closed.
While she appreciated Sirens for its lively energy and Distrito for its coffee, both places felt too busy or too small for working long hours.
She and a few friends often found it hard to locate a calm, welcoming spot where they could settle in without pressure. That search inspired her to create a different kind of space — one built around comfort and calm.
Before Sunken City, Palacios ran a pop-up at Feed and Be Fed, the garden church on Sixth Street. She served coffee and baked goods during Little Sprouts, a Friday morning program where parents and children ages 0 to 6 played in the garden.
“The idea was to bring something fun and fuel the moms,” she said. That pop-up, with its “communal coffee culture in nature,” planted the seed for something more lasting.
Palacios later connected with Tori Aten and Chef Alex Schwartzman of Neon Sun. When they discussed expanding the restaurant’s hours, Palacios pitched her coffee concept. Since Neon Sun already had an espresso machine, launching Sunken City Coffee inside the space came naturally.
“Tori embodies the décor — it literally looks like your living room,” Palacios said. “It’s homey and comfortable.”
Now open six days a week during breakfast and lunch hours, Sunken City keeps its menu simple: espresso, Americano, iced coffee and lattes. Palacios makes all syrups and pastries herself, allowing her to rotate weekly specials based on seasonal ingredients and inspiration.
“It’s just our basics,” she said. “Every week I come up with something new — whatever I’m feeling.”
While many coffee shops prioritize rare beans and extensive menus, Palacios said most customers want something familiar: a good cup of coffee, a treat and a calm space.
“There’s a handful of people who park their behinds in a seat and work for a couple of hours,” she said. “That’s what I wanted — somewhere people can hang out and not feel rushed.”
Her definition of success isn’t a long line out the door. It’s a slow, steady flow of people throughout the day.
“They stay a little, then leave. Someone else comes in and stays a little,” Palacios said. “It’s easier to manage, and it doesn’t feel overwhelming.”
Sunken City Coffee
Hours: Monday to Thursday, 9 a.m. to 2 p.m.
Details: 310- 872-3616, https://www.instagram.com/sunkencitycoffee/
Venue: 524 W. 9th St., San Pedro