Eleven SF bookstores get cash assistance from city

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From Mission Local:

Nearly a dozen local bookstores received a special gift from the city on Tuesday morning — $103,000 in total grant money to help them through a time when books can be delivered to one’s door at the click of a mouse.

And that’s exactly why the funding is so important, says Joaquin Torres, the director of the Office of Economic and Workforce Development. “There’s nothing online that can recreate the experience of walking into a bookstore — the art you see on the walls, the performances that take place, the cultural conversations,” he said.

. . . .

The money is part of the Bookstore SF Program, a pet project of the late Mayor Ed Lee, aimed at funding bookstore “revitalizations” that emphasize their roles as social hubs rather than simply places to purchase reading material.

. . . .

According to OEWD, there are 57 independent bookstores in San Francisco that together generate more than $9.8 million in sales, create and retain more than 100 jobs, host more than 40 free community events each month, and have been in business for an average of 21 years.

. . . .

Smith told the small crowd that he was considering closing his store in January. But, in the end, he decided to stick it out, and did so with the help of this loyal customers. Smith, in fact, started a Patron drive and apparently received enough to keep him going. For him, the city grant only added to his customer support.

“Some of my customers have been with me for the entire nine years (I’ve been in business),” he said. “That sort of loyalty and interest in reading on a regular basis is really powerful.”

. . . .

Razo had other exciting news: that Dog Eared would be opening yet another location — albeit a very small one — within the new social-justice-oriented cafe, Manny’s, soon opening at 16th and Valencia.

Speaking about the grant money, Razo, who has been running bookstores in San Francisco since the ‘80s, said: “I never thought I’d see the day where the city says, “‘Hey, here’s a check.’”

Link to the rest at Mission Local and thanks to Dave for the tip.

PG did a little math (actually, his Excel spreadsheet did the math, but PG punched in the numbers) and determined that if, per the OP, 57 San Francisco bookstores generate $9.8 million in sales (PG presumes annually), the annual sales of a single bookstore average  $171,929.82 per year.

Due to massive tech-driven gentrification, San Francisco has become one of the highest living costs of any metro area in the world. According to Smart Asset, average monthly rent on a two bedroom apartment in San Francisco is $4,650 (to save you the math, that’s $55,800 per year). In Q1 of 2018, the median San Francisco home price is $1.61 million (it’s doubled in the last five years). San Francisco’s healthcare costs are about 20% higher than the US average. Grocery prices are about 50% higher than the US average, etc., etc., etc.

Generally, bookstores need a gross margin of 40% to be profitable (the bookstore acquires a book for $12 and sells it for $20). A 40% gross margin on sales of  $171,929.82 (the average annual sales of the 57 bookstores described above) is  $68,771.93. That’s before rent, utilities, salaries, etc.

In 2016, the median household income in California as a whole is $67,739. The median household income in San Francisco is $84,160.

It sound to PG that the independent bookstores are marginal businesses these days and their employees are working at the ultimate dead-end job that leaves them impoverished and likely dependent upon government assistance. And the Bookstore SF program is designed to allow them to continue in an economically unstable state for a few months or years more.

10 thoughts on “Eleven SF bookstores get cash assistance from city”

  1. That headline threw me off.

    I didn’t know there were that many Science Fiction specialty bookstores in SanFran. Or that city government would want to subsidize them. 😉

    • Heh. The title threw me off as well, but for a different reason. I wondered which country harbored the city referenced, assuming it must be one of the protectionist nations in the EU. Perusing the text for an answer to my question, I was astonished to learn it was San Francisco. Really? Really? I’m weary of the current trend that pretends commercial enterprises are the Library of Alexandria. I suppose that shows my naiveté more than anything else.

  2. “is designed to allow them to continue in an economically unstable state for a few months or years more.”

    Ah yes, rather like subsidies for family farmers.

  3. I don’t quite get it. The argument seems to be for the cultural value the bookstores give by holding events. Wouldn’t supporting a specific place that could hold lots of events be better?

    My local library(not in SF) for example holds book related events. If they had that kind of cash thrown at them they could hold events almost daily.

    • Those are just excuses.
      The reality is they are trying to quietly paper over the consequences of a previous action: pushing bookstores out of SanFran (or out of business) with the city minimum wage hike.

      Businesses that were already marginal (as pointed out by PG) were going over the edge but they can’t admit *they* caused it so they throw (other people’s) money at it. It’s standard politics, practiced all over the world: take from the many to give to the few and then take credit for the government’s largesse.

      Orwell said it best: “Some animals are more equal.”

  4. “… — within the new social-justice-oriented cafe, …”

    So that’s actually a thing? OMG as the kids say, I’m sure they’re tolerant of other people’s views there …

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