Paolo Dungca on Kayu’s Rebirth: ‘We Just Want to Be One Percent Better Every Day’

While the move was unexpected, the team is all in.

“I didn’t really want to leave H Street,” Dungca explains. “We had a partnership, and they wanted to go a different direction, and I didn’t want to go the direction they wanted to go in. I will always double down on what I believe in, and I just wasn’t in line with that vision. It was just time for us to part ways.”

After dissolving the partnership with local father-son restaurateur duo Juan and Jeremy Canlas (Supreme Barbeque, Auntea Boba) and closing the original Kayu, Dungca knew he had to find somewhere to land quickly. Dungca’s innovative approach had made Kayu a fixture on H Street, and he didn’t want to lose momentum with a prolonged closure.

Enter the 17th Street property, set on a sunny block flanked by casual bars, restaurants, and shops.

“When I talked to the [new] landlords about it, they were willing to take us with open arms and allow us to open, so we got to work,” he says. “We closed Kayu on H Street June 30th, and then our first opening was August 6th. Everyone on the team was eager and hungry to get the place going. We were supposed to be on break, but we didn’t really take a break — we just wanted to take a short pause and keep pushing.”

“I feel very fortunate to find a place where we feel welcome and allowed to do what we do, to continue to push ourselves,” he adds appreciatively. “We’re lucky that we have someone who believes in what we’re doing.”

Things are looking a bit brighter.

Setting up shop inside what used to be Malbec, an Argentine steakhouse, the Kayu team appears to have embraced the aesthetics of their new 45-seat venue instead of trying to recreate the original H Street vibe.

“The space is definitely different,” says Dungca. “On H Street it was a little bit more — I guess people called it moody.”

Swinging in a more relaxed, upbeat direction, the new Kayu’s sunlit interior is broken up by light wood fixtures, wicker-backed chairs, and splashes of colorful art hanging from the cream-hued walls. A sleek bar glowing beneath warm basket lights acts as another welcoming touch.

“Now it’s a little bit more open,” he continues, emphasizing the laid-back ambiance. “It’s literally like you’re just coming into someone’s house and you’re in the dining room. It’s more open, more natural lighting — it’s just very, very simple.”

Speaking of natural lighting, the place also came with a breezy, 40-seat outdoor patio, one the team hopes to take advantage of just as cooler fall weather rolls into the District.

“We do have a patio,” he adds. ”We look to activate that as soon as we get settled.”

The magic now happens behind closed doors.

One of the most obvious contrasts between Kayu’s original digs and the 17th Street location is the lack of an open kitchen. What used to be the concept’s centerpiece — a bustling culinary hub set against glossy subway tiles and encircled by a low-slung chef’s table — has settled into the basement while guests eat and drink the evening away on the main floor.

And while diners likely won’t think twice about the new setup, going from the center of the action to tucked away downstairs has shifted the kitchen team’s workflow.

“Everyone’s just trying to get a grasp of how we should time everything,” says Dungca. “Coming from an open kitchen, I was able to see when to fire certain dishes to give the waiters a better understanding on when they can clear. But now it’s a little different in that sense — we can’t really see what’s going on upstairs, but we’re working on being better in terms of our steps of service.”

Expect a more streamlined menu.

Shifting gears from H Street’s dual, upstairs-downstairs layout has also allowed Dungca to refine his culinary approach. The new menu is a slight departure from Kayu’s previous iteration, dropping the tasting menu in favor of a playful lineup of small plates, family-style shareables, sides, and finger foods that fit the more relaxed space while continuing to feature some of the team’s greatest hits.

“Before, we were doing a shorter tasting menu — it’s not like we were doing way too much, but sometimes we could be unfocused and all over the place,” he reflects. “Right now, we’re not doing the tasting menu, so we can be a bit more focused and really excel at what we need to do, focus on proper execution and make things better every day.”

The Kayu faithful will be happy to see that Dungca’s signature cassava cake still beckons beneath layers of crab fat lardo, XO sauce, and smoked trout roe, as do the plump wild mushroom dumplings set ablaze with fiery chile-crunch and unctuous mushroom tea. Newer options include ube bao, served slider-style with chorizo and tangy pickled papaya, as well as a hearty ribeye laden with lemongrass-infused burnt coconut sauce and salsa verde.

“It’s a pretty intimate team — literally just my main chef prepping and basically all of us getting a hand in what goes on the menu,” he says. “We’re really working side-by-side making sure things are where they need to be before we put anything out. And it’s been kind of fun being able to curate the stuff that we’d like to keep, stuff that people loved — there’s something for everyone.”

The tasting menu might be gone for now, but that doesn’t mean it won’t make a comeback at some point in the future. It’s a format that’s always appealed to Dungca, a deeply creative chef who’s always looking to blend inspirations and share novel ideas.

“I’m definitely excited to squeeze in a way to introduce the tasting menu; it’s a fun challenge for us to tell the guest our story of how we grew up and where we grew up,” he says. “But right now, the main focus is how do we get better, and then how do we keep pushing the envelope when it comes to showcasing Filipino food in a way where it’s ours but it’s also relatable for the diners.”

“We just want to be 1% better every day,” he adds. “That’s basically the idea.”

Hiraya is still on hiatus — but not forgotten.

Kayu’s popular sister cafe Hiraya also shuttered during the move, with no immediate plans to reopen the daytime go-to as a standalone venture so far. In the meantime, Dungca and co. are looking to incorporate some of Hiraya’s most beloved components into Kayu — starting with his celebrated Filipino brunch.

“Brunch is something that we’re planning in the next couple of months,” he explains. “We’re going to have a Hiraya brunch and then bring the coffee program back — some of the stuff that people loved during the daytime.”

As for a full reopening, it’s certainly not off the table. “That’s always going to be in the back of my head,” he says of rekindling Hiraya’s all-day operation. “Once we’re comfortable, maybe start looking for the next home for the cafe, and go from there. We’re just really excited to do what we love and continue to showcase our rich, diverse culture in Washington, D.C.”

Kayu is making new friends, but keeping the old.

Much like when Dungca’s original outpost opened its doors in Northeast, the Dupont Circle location has seen immediate success thanks to the area’s thriving dining scene as well as Kayu’s more established reputation among D.C.’s food cognoscenti.

“It’s been great, really good reception so far,” he says of the 17th Street crowd. “It’s a different neighborhood compared to where we were at — there’s a lot more foot traffic at nighttime. Lately we’ve been seeing a lot of the people from the neighborhood coming in twice for dinner.”

He’s also had a few Northeasterns make the trek west.

“We have this regular that would always come for dinner on H Street,” Dungca remarks. “Last week he made a reservation during the grand opening, and then this week he made three reservations on different days.”

“It’s nice to see the support is still there, to see familiar faces for sure. And we’re also excited to welcome new ones and create new regulars,” he continues. “We just need to keep building the momentum, to push through and be better for the neighborhood.”