Minorities in the area found it very difficult to obtain liquor licenses and/or permits. Lopez and Quijano struggled to open the bar at first as a result of discriminatory practices. The co-founder of the group Gay American Indians (GAI), Randy Burns, said that the frustration at this discrimination was also what led his group to form, and members often met at Esta Noche. These experiences led to the creation of Esta Noche. LGBTQ+ people of color were often asked to show multiple forms of identification in these spaces. LGBTQ+ people of color often experienced racial slurs, microaggressions, and fetishization, as the bars where LGBTQ+ people were able to socialize and party were mostly dominated by white men. It is historically placed as the first gay Latino gay bar, and it has significance due to the discrimination LGBTQ+ people of color faced in traditionally popular white gay bars, especially in the Castro district.
Esta Noche was founded by two openly gay community members, Anthony Lopez and Manuel Quijano.
