Live bands, fashion events, art exhibits, and now classic American food line a popular alley in the heart of Hillcrest, which several bars and restaurants have occupied in the past three decades.

This week’s opening of Ruby Kitchen on University Avenue reflects the success of its adjoining rear structure, the Ruby Room, formerly home to the well-traversed Peacock Alley, a gay dance club that operated from the decadent ’80s through the mid ’90s.

The “double-ruby” venture is owned by Hillcrest residents Sean Cute and his wife Brittni, along with business partner Paul Smith. The trio first opened the back-alley space in October, converting it from The San Diego Sports Club to The Ruby Room, an event-filled cocktail venue that mixes grunge with glam and blurs the division between gay and straight.

Upgrades include the removal of “tacky beer signs,” plus the installation of murals, sophisticated lighting, new furniture and a polished sound system for fueling the dance floor and live stage acts. On any given night of the week, patrons encounter obscure to well-known bands and DJs to fashion shows, as well as burlesque and theme bashes, such as the “Return to Peacock Alley” held last month on Pride weekend.

As for Ruby Kitchen, “the idea was timely,” says Cute, who took advantage of the enormous two-floor space after the Med Grill closed a few months ago. “It was a great opportunity to get a better street presence for the bar,” he says.

Cute is banking on filling a late-night dining niche by staying open “for a while after the bars close” – The Ruby Room of course being one of them. On opening day last Saturday, he said that business was brisk as bar crawlers munched on burgers, BLTs and other comfort grub until 4 a.m. – a radical change from when a succession of previous owners served up Mediterranean fare or when the space operated a hookah and tea lounge.

The restaurant’s modest redesign features splashes of red and khaki with accents of gold. Lighting is more evenly distributed to highlight rotating art. And centered amid booths and four tops at ground level are two communal pinewood tables that each seat about 12 people. The second floor gives way to a few smaller tables and some lounge furniture.

Ruby Kitchen’s menu (soon to be expanded) is authored by Chef Eric Gonzales, formerly of Illume Bistro and Ole Madrid. “He brings a fine-dining flair to a casual eatery,” says Cute.

His current offerings give customers a slice of Americana with gourmet twists. The Ruby burger, for instance, comes with smoked Gouda, caramelized onions, fried pickles and secret sauce. Fries are dusted in herbs de Provence. And fans of grilled cheese sandwiches can delight in the jumbo “Lactoasted,” which comes with roasted red pepper and tomato dipping sauce to mimic a bowl of tomato soup parked customarily alongside.

There’s also prawn scampi, breaded calamari with creamy cilantro-lime dip, steak hoagies, PBJs with fruit and chocolate sauce and a short list of beer and wines served until 2 a.m. Most meals are priced under $10.

“We scraped and worked hard to get the bar and restaurant launched,” adds Cute. “I don’t think we would have made it if the economy was in an upswing, because bar owners with more money would have grabbed this. The recession played in our favor, and because of it, we’re keeping our prices low and our portions healthy.”

Both the Ruby Room and Ruby Kitchen are open seven days a week. They are located at 1271 and 1263 University Ave., respectively. For more information, call 619-487-9381.