Kay and Ryan Zin spent a year and more than $300,000 on permits and renovations before opening Bay of Burma restaurant in San Francisco’s South of Market area in 2023.
The business owners leased space on the ground level of a mixed-use building, with residences upstairs.
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The day after their grand opening, they learned the city would be turning the residences into a homeless shelter for youth.
"We didn’t have any clue what is happening on the building," Kay told ABC7 News in San Francisco.
With the shelter slated to open April 2025, the Zins feel trapped. They want to relocate, but that would mean breaking their lease and losing the money they invested in their existing restaurant.
"We are the tenants, too,” Ryan said. “We don’t want to deal with everything that we don’t want to because we want to focus on our business, but our hands are tied."
Balancing social needs with business concerns
The city chose the location because it complements other city-run supports nearby, including an addiction treatment center, a sobering center and homeless shelter.
But area businesses are concerned about increased crime. The Zins’ restaurant has already been robbed twice — at gunpoint. Small businesses are worried would-be customers will stay away due to growing safety concerns.
"I just wanted to relocate to a safer place," said Kay.
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For over a year, the Zins have been communicating with the city’s Homelessness and Supportive Housing (HSH) department about their concerns. They want the city to refund their $300,000-plus investment so they can move.
HSH supervisor Matt Dorsey told ABC7 News is willing to help the Zins and that he doesn’t “want to do anything that will hurt a small business.”
“They didn’t sign up for this,” he said. “They want out. I’m happy to have that conversation and bring my office in negotiating that.”
Dorsey added that the city will be providing round-the-clock “ambassador services” in the neighborhood to address concerns about safety. He said there will also be onsite security in the shelter overnight.
When local policy impact local businesses
Small business owners in situations like the Zins may feel stuck, but there are steps to mitigate risk, advocate for support and deal with risk.
Understand your rights. Before signing a lease, it’s critical to review any clauses about building ownership changes, city takeovers or early termination rights. If you’re already leasing, consult your lease agreement to see if the landlord violated any disclosure or notification requirements. Commercial tenants may have rights depending on lease terms and local ordinances.
Build alliances with other small businesses. You’re stronger together. Join or form a merchant association or collaborate with nearby businesses to share advocacy, safety initiatives and resources. Voice collective concerns to city officials or neighborhood councils.
Adapt to change. If your customer base shifts, consider adjusting your business model. This might include offering delivery or pickup to reach customers reluctant to visit in person, expanding your online presence or hosting community events to foster positive engagement.
Seek legal or financial advice. If you’re facing eviction, unexpected relocation or damages, consult a legal expert with experience in commercial property law. Additionally, a financial adviser can help you create a plan for relocation, recovery or assistance applications.
Apply for local or state grants and aid. Your municipality or state may offer grants to support small businesses facing displacement or hardship, covering things like relocation, lease assistance and infrastructure improvements.
Engage with city officials and local media. Make your voice heard by attending public meetings or speaking to local representatives. Raising awareness through media as the Zins did can also amplify your situation and potentially bring support or solutions.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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