Neighborhood Merchants Generally Doing Fine

While some San Francisco commercial corridors experienced dramatic reductions in demand between 2019 and 2023 – sales tax revenue dropped by 43 percent South of Market – sales tax revenues in Potrero Hill rose a modest three percent during the period, testament to a resilient clutch of merchants dominated by popular restaurants and small markets.

Vanessa Blyth Marlin owns Bell & Trunk, located on 18th Street between Connecticut and Missouri streets which specializes in floral arrangements for weddings and events, as well as subscriptions for the home and office. According to Blyth Marlin, Bell & Trunk is thriving, with a record-breaking Valentine’s Day and a 2024 wedding and event calendar packed.

“What’s even more exciting is that our flower arranging classes and flower bars are really taking off as companies are focusing on creating a fun and dynamic culture now that workers are returning to the office,” said Blyth Marlin. 

Blyth Marlin is fostering new relationships with local flower farms to secure fresher and unique blooms and sestablishing her own perfume and candle line. In June, Blyth Marlin will participate in Bouquets to Art, an annual floral exhibition at the de Young museum in Golden Gate Park.

“We started out as a sleepy little flower shop but now business is booming with all the new development in and around Potrero Hill. The relationships we have built with our neighbors over time are stronger than ever,” said Blyth Marlin. “Potrero Hill is a great place to have a small business; we have a small-town mentality here in the big city. Customers are very loyal, and the local merchants look out for one another. And we have more foot traffic than ever as people from all over flock to Potrero Hill for the sweeping views, great restaurants and all the other unique and wonderful things we have to offer.”

A few stores down Farley’s, a coffeehouse that owner Chris Hillyard describes as an alternative to neighborhood bars, offers coffee and snacks. Commemorating its 35th year, Hillyard said business has been steady. 

“We were fortunate to be in such a special neighborhood full of wonderful residents who supported the cafe during the pandemic and continue doing so still after 35 years,” said Hillyard. “We benefit from having people in the neighborhood throughout the day. It’s not like Downtown where fewer people are around. The neighborhood residents recognize the value and importance of local businesses and do their best to support them.”

Hillyard noted that Farley’s is busiest on weekends thanks to what he calls the “Plow Effect,” where patrons stop by for coffee during their wait – upwards of 60 minutes – for a table at popular brunch restaurant Plow down the street. 

“It’s great for latte sales!” said Hillyard. 

Hillyard is considering extending Farley’s hours into the evening. 

“This is something we had pre-pandemic, but we just need to make sure there will be enough customers to support us,” said Hillyard. 

“The cafe has experienced its fair share of challenges,” said Yasmin Points who opened Cafe Da Fonk! at 300 De Haro Street last summer. “Initially, there was a hopeful surge in business as the holiday season approached, but the onset of the new year brought with it a notable slowdown. Concerns over the economy, tighter budgets, and unfavorable weather have all played a role in this downturn, prompting us to rethink our strategy and offerings.”

Points has diversified the cafe’s menu to better cater to its lunchtime customers, introducing heartier options like grilled chicken and beef stew rice bowls. Its breakfast sandwiches and biscuits remain popular.

“We typically see a peak in activity around early lunch, from 11 a.m. to 1 p.m., followed by a more sporadic influx of patrons after 1 p.m.,” said Points. “This pattern is largely driven by the local workforce, with a significant portion of our clientele comprising employees from the surrounding area. We also welcome those who work from home, seeking a change of scenery or a meal out.”

Points said operating in Potrero Hill has advantages and challenges compared to other areas of San Francisco, such as South-of-Market, where she previously owned a restaurant. Despite SoMa’s higher foot and car traffic, the Hill offers a more welcoming and homely atmosphere.

“SoMa’s parking difficulties, less appealing scenery, and cramped spaces, common in more central locations, are offset here by a sense of coziness and community. This setting resonates well with our diverse clientele, who often describe it as a comfortable, cozy albeit slightly grungy, space reminiscent of Berlin,” said Points. “We’re considering branching into catering, hosting pop-up events, and possibly extending our evening cafe hours to a regular weekly schedule. I’m planning some virtual kitchen concepts as well.” 

Veteran communications executive Fred Bateman has been running his own public relations agency in the historic Hamm’s Building in Mishpot for more than twenty years. His firm, eponymously called Bateman Agency, was named the “Fastest Growing Private Company in the Bay Area” by San Francisco Business Times in 2023 after bringing in $2.2 million in revenue in 2022, a roughly 1,000 percent increase in two years. 

When he moved to San Francisco from Boston in 1998, Bateman stumbled upon the Hamm’s building after picking up household items at the Potrero Center Safeway.

“As I’m pulling out of the downstairs underground exit, I see this enormous, green-colored masonry building with tinted black windows and a tower with green neon at the top. I was overcome with the strangest premonition and thought ‘I will have my own company in there someday,’” said Bateman. “At this point, I had never, ever considered the possibility of starting my own PR agency. Sure enough, fast forward to 2005 and I signed my first lease for 850 square feet on the seventh floor of the Hamm’s Building. 20 years later and I’m still here. 

According to Bateman, despite his revenue growth, it’s increasingly challenging to do business in San Francisco.

“The pandemic drained the city of mid-level and senior talent who could afford to relocate permanently to places like Bend, Oregon, or Tahoe,” he said. “It’s extremely difficult to find talent at all levels but especially people in their 20s. Every year it gets harder to keep the center of gravity of my company in Potrero Hill and San Francisco in general. My plan is to try and continue to hire locally as much as I can, but to maintain and grow our other chosen talent centers in Boston and Austin so I’m not restricted by that either. The Marina, Cow Hollow, Jackson Square and Russian Hill remain the same through every boom-and-bust cycle while this neighborhood rises up during the good times and falls the furthest during the bad. Right now, it’s the worst I’ve ever seen. But I know it will bounce back because it always has.” 

_{Photos (top), clockwise from top left: Yasmin Points, owner, Cafe Da Fonk!; Chris Hillyard, owner, Farley’s; Vanessa Blyth Marlin, owner, Bell & Trunk; Fred Bateman, owner, Bateman Agency.  Photos: Danny Pham}