SF's mom and pop shops are dwindling: How can we save them?

SAN FRANCISCO (KGO) -- San Francisco is known for being a city of neighborhoods that cater to the needs of nearby locals.

But many of the small businesses that once gave these communities their personalities have vanished -- victims of high rents, increased competition, and high labor costs.

What can be done to save what's left and improve those spaces?

San Francisco has been in a constant battle between preserving its past while embracing innovation.

On one hand we say that we adore our mom and pop shops but then turn around and continue our affair with online shopping.

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"My niece, who is in Seattle, she buys 10 pairs of shoes has them all delivered to her house. Tries them on in front of the mirror and then sends back eight or nine pairs and keeps just one," said Dona Taylor, owner of a retail store When Modern Was in San Francisco's Noe Valley neighborhood.

She said Noe Valley hasn't opened a retail store in seven years. The popular 24th Street doesn't have a single shoe store left. Instead, businesses that provide service are trending in Noe Valley.

"Medical facilities, we have, oh my God. We have six gyms and another one is opening now, so everyone is looking really good," Taylor said.

Also trending are stores that offer a one-of-a-kind experience, like Moonshot Studio, which allows you to blend you own scent for candles and body sprays.

"A lot of my customers like to film here. My younger customers particularly, and they post on Instagram and TikTok. Actually, the whole activity they do a video making their own candles, blending their scents and posting for their friends. And some are small influencers that have posted about us," said Teresa Fitzgerald, owner of Moonshot Studio.

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Still, even for them, high rents are a challenge for many mom and pop stores.

"You've got high payroll taxes, you've go high payroll, then you've got your rent and you utilities and your computer, and it all adds up," Taylor said.

In contrast, Hayes Valley has only a few mom and pop shops, but a lot more corporate-owned stores operated by a parent company. They can weather most financial storms.

While mom and pop shops are considered the fabric of a community, that fabric has been fraying for awhile now.

Take independent pharmacies. In the 1970s, there were about 300 of them in San Francisco. The landscape has changed with only about 20 left.

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There are only three independent pharmacies left in Chinatown.

Peter Lo, who owns Wellman's Pharmacy, has been here been here since 1987. He says the declining reimbursement rates from insurance companies continue to hurt him. And then, there's the obvious reason for the closures.

"Also, there is some unfair competition from the big guys, you know," Lo said.

A proposed city ordinance is now being introduced to establish an independent pharmacy task force that would help the city buy prescription drugs at wholesale prices on behalf of these pharmacies and provide medication at a discounted price for low income people.

As for any mom and pop shops, San Francisco Supervisor Connie Chan wants to protect legacy businesses from being displaced.

MORE: San Francisco launches pharmacy task force to keep independents in business

She also wants to make it easier and more transparent for employees to take over when someone like Lo retires.

"Allowing the workers to say, 'This is something that is happening where I work. Maybe together we can gather up some money and purchase the business,'" Chan said.

As a small business, what Lo says he and his staff have to offer is the language competency and trust.

"Trust is very important. I have people who keep coming back and then maybe second and third generation. They really trust me, and not only as patients, but as a friend," Lo said.