Bar Lucia opened on Friday, February 3, on Kellett Street, Potts Point, the one-time jewel of Sydney eat streets. And there's another Kellett Street project on the way from the team at Ezra restaurant.

Like shoulder pads and sun-dried tomatoes, Kellett Street had its glory days in the 1980s. Sydneysiders dined at The Third Man and had their first taste of nachos at Deans. By the time celebrity chef Manu Feildel closed Aperitif in 2011, he lamented: "People don't seem to want to come to the Cross to eat; they just want to get pissed."

Bar Lucia co-owner Pablo Galindo Vargas, of Milpa Collective, will be hoping to tap into that sentiment, if not its excess. He argues the precinct is in a healthy state for dining options (Milpa also operates Sonora restaurant on Bayswater Road), but he has noticed a trend. "There's a high spend in the area, and wine is becoming popular with young people."

The interiors of Kellett Street's grand terrace houses reminded Galindo of Madrid, so the hospitality group pulled in designer Imogen Reed to recraft the short-lived Casa Merida as a tapas-led wine bar.

"I feel like the last time we didn't really finish it properly," he says. They started again and crafted a new interior that better suits the historic building.

Sommelier Kasia Sobiesiak has crafted the wine list and bartender Luna Ercoli guides the cocktails.

And where Galindo has looked to Mexican food at his other restaurants (Londres 126, Taquiza, Santa Catarina), Bar Lucia is leaning into tapas. Head chef Alberto Palacios' opening menu includes ox tongue with salsa pintxo and salsa verde, with plenty of jamon iberico and anchovies.

In further evidence Kellett Street is on the comeback trail, the team from Ezra (3 Kellett) is set to open an Indian restaurant next door.

Plans lodged with the City of Sydney foreshadow a stunning revamp of 1 Kellett, a prized heritage corner site. Ezra restaurant co-owner Kirk Matthews-Bowden says they hope to open the doors on Raja in April or May.

Open Tue-Thu 5pm-midnight, Fri 5pm-1am, Sat noon-1am, Sun noon-10pm.

5 Kellett Street, Potts Point, 02 7226 8802