Two weeks into return-to-office mandate, Downtown Sacramento sees modest signs of rebound

The Abridged version:

• As of Wednesday, state workers are two weeks into a divisive executive order from Gov. Gavin Newsom requiring them to work in person four days per week.
• Foot traffic increased 12% from July 1 to July 11, compared to the same time frame last year, according to the Downtown Sacramento Partnership.
• Workers and residents downtown are seeing a modest uptick in cars on the road, crowded parking lots and customers in cafes.

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More state employee name badges are hanging from neck lanyards and belt loops on the sidewalks of Downtown Sacramento these days.

As of Wednesday, state workers are two weeks into a new return-to-office mandate issued by Gov. Gavin Newsom. Eagerly anticipated by some and dreaded by others, the mandate brings tens of thousands of workers back to state office buildings at an order of magnitude higher than Downtown has seen since before the pandemic.

Most state workers were called back to working in person four days a week starting July 1. While a patchwork of policies is seeing some departments delay their return to office, the local business scene is reporting a modest uptick in foot traffic.

Downtown foot traffic increased 12% from July 1 to July 11, compared to the same time frame in 2025, according to data collected by the Downtown Sacramento Partnership. The organization works with a third-party company, Placer.ai, to track foot traffic using location data from smart phones.

Before the COVID-19 pandemic ushered the bulk of downtown into telework, Downtown Sacramento had a workforce of about 100,000 workers. As of February, Downtown was only at about 60% of that figure, according to the Downtown Sacramento Partnership.

“It’s exciting to be able to have more people downtown,” said Madelyn Bussola, spokesperson for the Downtown Sacramento Partnership.

While more formal sales tax numbers and more definitive results are still in the works, Bussola said the organization is already seeing greater demand for more seating and vendor booths at its farmers market events. The changes are subtle, but positive so far, Bussola said.

“We see a more positive experience the more people we have,” Busssola said.

Frustration among state workers continues

The summer heat has kept more people indoors, or on vacation, but downtown resident Toby Simon said he’s beginning to see more life outside.

The extra customers rolling into the restaurant underneath his apartment and extra cars are filling the blocks of Downtown Sacramento, he said. He’s also hearing more concerns from friends who work for the state.

“I have a lot of friends who are state workers and they worry about paying for lunch,” Simon said. “It’s not a boon to businesses if it’s something they don’t want.”

State workers interviewed by Abridged by PBS KVIE expressed frustration with the change from telework to in-person work, recalling hot offices and crowded commutes on the light rail.

Business owners optimistic for rebound

Tim Tararug opened Sapha Kafae with his wife in May 2025 just as the four-day-a-week mandate was initially gearing up. Newsom issued the order in March 2025, but it was later postponed by a year. The cafe is the latest business to fill the corner of 14th and O streets.

“Things are still on the rebound but things feel pretty optimistic,” Tararug said.

He said his cafe has seen a welcome uptick in customers over the last month, though he wasn’t sure if it was from the state worker policies or Yelp ads.

While the lines aren’t out the door, on Wednesday afternoon the cafe had a steady stream of lunchtime customers. Tararug said he’s already planning on adding another front-of-house employee to keep up with the demand.

The optimism is similar with his neighboring businesses, Tararug said.

“We’re locked in,” he said.

Farther downtown at P and 10th streets, the most clear change is the parking lots that are filling up, said Migdelia Ruiz, a barista at Cafe Xocolatl. She and her colleagues immediately noticed the parking lot next to the cafe filling up starting July 1.

The uptick in customers is yet to arrive, though.

“It seems like a lot of regulars here,” Ruiz said, looking across the cafe that was empty Wednesday afternoon.

Felicia Alvarez is a reporter for Abridged by PBS KVIE covering accountability. She’s called Sacramento home since 2015 and has reported on government, healthcare and breaking news topics for both local and national news outlets.