Jack Spade

Jack Spade

City Hall Set to Close Chain Store Loophole

The San Francisco Board of Supervisors is set to vote next week on whether or not to increase regulations on chain stores opening in San Francisco. The measure, which Supervisor Mar expects to pass unanimously, seeks to expand existing regulations on which stores fall under the category of formula retail.

The Examiner reports:

San Francisco’s first restrictions on chain stores, defined as having 11 or more store locations in the Untied States, was enacted in 2004 with an outright ban for Hayes Valley. North Beach followed suit. […]

Since then, new concerns have emerged in communities related to formula retail stores finding loopholes in the existing law. One example was when GANT Rugger opened in Hayes Valley last year. Though the company had more than 11 locations, eight were in the U.S. and the rest in Europe, and therefore it did not fall under The City’s chain store law.

Under Mar’s proposal, the definition of a chain store would change to 11 or more locations worldwide, no longer just in the Untied States. The types of businesses captured by the restrictions would also expand to include check cashing, massage parlors, tobacco sales and fitness gyms.

With even pro-business Supervisor Wiener saying that the new regulations “will provide an even stronger and better process than we already have,” it appears that passage is all but guaranteed.