At the risk of sounding whooshed, I expect that the answer was “Yes, we want the deposit back, but don’t kid yourself that you’re making amends. You’re fulfilling a legal obligation.”
Big whoosh. Massively screwing someone over and then asking them if they want a refund of the money they paid you for the job you didn’t do is a crazy stupid question to ask.
You don’t ask, “Do you want the money back for the job we didn’t do?” You give them the damn money along with copious apologies and something to make amends.
I was just amused that they asked.
Oh, hey, congratulations a week later! 
What a great choice - I love Sol Food. I don’t usually bother to go much anymore due to the lines (I’m inevitably in San Rafael during the lunch rush), but the Camarones Empanizados is a rarely satisfied occasional craving of mine.
I’m lucky to live within their delivery range, so I don’t have to deal with the lines.
Also, turns out they’re really good at making food for large parties with little notice:
I thought that sounded familiar. I was at Sol Food ages ago. I think they were pretty new then. Good food!