Rising costs are crushing the San Francisco restaurant industry

Screenshot 2018-01-08 at 09.20.55.pngData that Yelp has provided on San Francisco restaurant openings and closures indicates that from last January through the end of November, 277 restaurants and food trucks in San Francisco opened, while 350 closed.

Not good. The San Francisco Chronicle says the data suggests that restaurants are feeling the impact of San Francisco’s rising minimum wage.

In the broad spectrum of the city’s dining scene, data show that small restaurants — the ones that specialize in banh mi, takeout General Tso’s chicken, eggs over easy — made up the bulk of the business turnover in 2017.

Most restaurants in this genre do not have liquor licenses, which can drive profits but are expensive to purchase. Such restaurants keep prices down for their customers. Their business depends on people who live around the block, those who wouldn’t Uber across town for a meal.

The fact that closures outnumber openings is significant.

 

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One thought on “Rising costs are crushing the San Francisco restaurant industry

  1. In Seattle, over 1,000 businesses have closed or .. moved when they passed the $15 wage. Yet, leftists tout how well the employee’s are doing… NOT.. They had their hours CUT or they were laid off and the others had to make up their work, plus do their own work. The average wage slave there lost $125 a month. No wonder business is fleeing Kaly and the deep blue states.. DemoRats sure know how to create poverty and then hand out welfare for votes like in Kaly..

    Like

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