Lee cut the ribbon marking a new beginning for the restaurant.
Squat and Gobble sustained $900,000 in structural damage and $1 million in property loss in the four-alarm fire that started in the building next door on Oct. 12, 2012.
Squat and Gobble is part of a local restaurant group with five locations in San Francisco. The first location opened 20 years ago on Fillmore Street, according to owner Issa Sweiden.
"We are starting our 21st year in a wonderful space that will be a gathering place for the neighborhood," Sweiden said in a statement.
The blaze caused a total of $7 million in damage to three buildings, and two firefighters were injured fighting it.
ABC7 News contributed to this story.