Why open a enterprise throughout the pandemic? As a result of ‘I actually, deeply love San Francisco.’

Three days before the opening day in Trade Routes, a new neighborhood bar on Polk Street, there was no room for new customers. Thanks to the pandemic, the bar stools were heavily reordered.

This was a lifelong dream for Jay Ryoo and Chen-Chen Huo, two college friends. Now, 72 hours before the doors opened, they had to struggle to find replacements from an online retailer. They recruited family and friends to help them unpack and assemble the new stools as soon as they arrived.

“There have always been little supply chain issues,” said Huo, who works with other hospitality companies in San Francisco. “This is probably the worst ever, and we definitely noticed it when we were expanding the bar.”

According to city data, at least 1,746 companies registered in four categories in 2021 alone: ​​Gastronomy; Retail trade; Arts, entertainment and recreation; and “certain services” include laundromats, auto repair shops, beauty salons, and more.

Although the pandemic has taken a huge toll on San Francisco’s vibrant small business community, the exact extent of which remains unknown, it has also opened new storefronts.

Some of these dealers have a lifelong dream. Others are taking advantage of the new opportunities that the pandemic brings with it. And there are those with a history of small businesses who want to continue to shape their neighborhood.

planning

An unreliable supply chain is just one of the challenges these new businesses face.

Santana Tapia said it is uniquely difficult to conceive and set an entirely new physical pace when you cannot bring people together.

This work is especially important for the Fluid Cooperative Cafe, a coffee shop and hangout in La Cocina Marketplace on Hyde Street specifically designed as a safe place for transsexuals. Events like drag brunches and book readings are accompanied by an extensive coffee menu named after icons of San Francisco’s legendary queer community.

“It was the hardest part when you can’t go to someone and tell them how to do something or how to make a room safe,” said Tapia.

Changes in consumer behavior have also turned traditional business models upside down.

Pedestrian traffic

In the past, store fronts relied primarily on pedestrians for revenue and word-of-mouth.

That has almost disappeared with the arrangement of the shelter-in-place in March 2020. The steady drumming of passers-by has slowly returned with the advent of parklets and car-free streets, but it is now leaning more towards commercial corridors in the neighborhood rather than areas near business office buildings like downtown for example.

This difference has changed the mindset for some business owners.

Take Kingston Wu, who owns two restaurants and bars in the marina.

He decided to temporarily close Westwood, a country music pub on Lombard Street, and instead pooled his resources for a new restaurant location called Wilder on Union Street, which was in the works.

“While there is likely to be less traffic than Chestnut Street, we knew the corner would bring us more eyeballs during the pandemic, which would be necessary to make the grocery sales we need to survive,” Wu said. “We also had a hunch, which only later emerged, that the large sidewalk on either side of our restaurant would be popular with diners who wanted to avoid enclosed spaces.”

financing

After all, running a small business in San Francisco known for its expensive real estate, high operating costs, and repressive approval bureaucracy has always been difficult. Things got worse when the pandemic decimated demand and disrupted operating rules.

The city has distributed $ 52 million through a series of grants and loans to help businesses meet expenses like rent and payroll, according to the Bureau of Economic and Human Resources Development, and state and federal aid provided temporary cash flow to keep them afloat.

But in all this uncertainty, developing a solid financial plan is proving to be a difficult task.

Many business owners say the community has been stepping up to support.

Fog City Community Fitness launched in August 2020, initially in a virtual environment or outdoors, before moving into its physical space on Valencia Street in November. The member gym started when a group of gym goers raised money to take over a fitness business that was about to close.

Hillary Terry, co-owner and president, said the business would be impossible without the input of community members, many of whom teach full-time jobs, teach fitness classes, clean the bathrooms and run the front desk.

Traders also said that repeat customers generally tip better than they did before the pandemic, generally show more patience when things don’t go perfectly, and devote more time to hobbies and passion projects.

“We decided to move our business forward because we really believe in what we do,” said Kevin Gondo, co-owner of Shared Cultures, a fermented food company. “Our passion for our craft is what drives us, and as we continued to bond with our community during the pandemic, we felt such real support that it felt like we were on the right track despite the challenges.”

Challenges aside, these new companies all have a firm belief that The City will bounce back and they want to be part of that story if it does.

“I really love San Francisco deeply. It goes beyond predicting what The City will look like, ”said Huo, a lifelong resident. “For me it has always been about building a business in The City, being part of the local community here, especially the community that raised me.”

cgraf@sfexaminer.com

RestaurantsSan FranciscoSmall Businesses