Small businesses in downtown San Francisco hanging on as more corporations leave

SAN FRANCISCO -- As Nordstrom becomes the latest corporation to pull up stakes in downtown San Francisco to search for greener pastures, small businesses which don't have that luxury are still trying to survive the city's economic downturn.

After riding out the COVID pandemic, small downtown businesses face increasing challenges in the pandemic's wake. 

Bota, a popular tapas restaurant located near Union Square, has seen a significant decrease in the number of customers in recent months, with at least 40% fewer patrons compared to last year.

According to manager Steven Martinez, the restaurant's struggle is real, and it's not just about the pandemic.

"Right now, if you look at the restaurant, it's pretty empty," Martinez said. "We should have a lot more going on, but we don't. Without any kind of convention, with all the layoffs in the city, it's really affected our restaurant a lot."

The decrease in business is part of a trend that can be seen while walking the streets near the restaurant. For lease signs and empty stores are becoming more common.

"Four years ago, it was a great place to come. Now, it's just ... with the violence, the crime, the homeless, even me walking down the street, it's not as shiny and pretty as it used to be," Martinez said.

Nordstrom's decision to leave downtown San Francisco completely is a wake-up call for small businesses like Bota. Martinez often wonders what could happen to Bota and its employees if things don't get better.

On Twitter, District 6 Supervisor Matt Dorsey expressed his disappointment about Nordstrom's departure and highlighted the importance of why he thinks the city needs a fully staffed police department. 

Martinez agreed, saying that they're not giving up and are trying to find different ways of promoting the restaurant and its lounge.

"We're looking at different ways of getting us noticed," Martinez said.

Mayor London Breed's downtown recovery plan includes some big tax breaks for businesses. The proposal would give businesses in the hardest hit areas a two-year delay in tax increases, while companies that move their offices to the city could also get a tax credit of up to $1 million for three years.

Breed is also looking at a potential 2024 ballot measure for broader tax reforms.

Earlier this month the city's Office of Economic and Workforce Development and non-profit SF New Deal launched a new initiative to help re-energize the neighborhood.

The "Vacant to Vibrant" initiative will award grants from $3,000-$8,000 for pop-up businesses and up to $5,000 for expenses and tenant improvements.