Jim Angelus, the owner of Bacon Bacon, said the restaurant will shut down at the close of business Friday.
Neighbors complained last summer about the smell and alleged Bacon Bacon did not properly dispose of grease. The San Francisco Department of Public Health notified the restaurant in August it lacked proper health permits and gave the owners 75 days to resolve the issue.
The complaints came when neighbors had an opportunity for public comment when the owners took over the location, the San Francisco Examiner reported Wednesday.
An attorney for the neighbors, Ryan Patterson, said the restaurant does not have a filtration system to deal with the bacon smell, and dumps bacon grease directly into the sewer system.
"My client offered to pay the restaurant owner money to install an air filter," Patterson said. "To date, the owner has not accepted that offer."
Angelus said the whole affair was "frustrating."
"Two weeks ago, the health department showed up saying we had no permits," he said. "So we had a hearing and one person showed up saying they were opposed. They told us we had long enough to resolve these issues -- and as a result, we have to cease operations May 17."
The restaurant could argue its case at a public hearing but its next chance to do that comes in July -- too late to prevent it from going out of business, the report said.