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San Francisco Too Expensive For McDonald’s?
SAN FRANCISCO (CBS SF) — McDonald’s famous golden arches are vanishing from San Francisco, and real estate prices could be the culprit.
The restaurant on 16th and Mission abruptly closed, and so did the one on Van Ness Avenue. Word is the one near the ballpark at 3rd and Townsend is on its way out too.We know most Americans can’t afford to live in San Francisco, turns out some American institutions can’t either.“Someone else owns the land. Someone else owns the building, and that person sees a better deal building condos condos condos,” Joe Eskenazi of San Francisco Magazine said.Eskanazi is the Senior editor of San Francisco Magazine and has written about such issues over the years.
“There’s almost no example you can come up with now, that isn’t too extreme of how expensive it is to live and do business in San Francisco,” he said.
Last edited by Common Sense (6/04/2015 1:20 pm)
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Tastes change, and McDonalds is in some trouble.
But, their position in Alabama is probably secure.
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Of course, it's possible the people living around there aren't really crazy about calorie-packed quarter-pounders with cheese anymore.
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SF is a great city. Great restaurants, great street food. Unique stuff.
Maybe a 50+ year old franchise whose business model is to produce fatty food with industrial uniformity and feature pictures of a clown is losing its edge?
SF is an expensive place to do business, the decline in McDonalds' business would be felt there first.
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I love San Francisco. My second favorite city in America after Philadelphia.
But I think this is more than about San Franciscans not wanting a quarter-pounder and fries. And it's not about whether liberal governance in San Fran makes the city a bad place to do business.
I see this more of an issue of gentrification of major cities. This is a result of the widening gap between rich and poor.
A good place to start some research this is in Washington D.C. This is a huge issue down there. You can read some of the D.C. story here and in the links within.
So yes Goose is right when he says there will be still be plenty of Mickey-D's in Alabama. Because there are a lot of poor people in Alabama and affording a Happy Meal for thier children may be a big deal.
But the McDonald's in San Francisco may end up being replaced by a Nobu. Because there's a lot of people in the city by the bay who can afford it.
Is this a good thing or a bad thing? I'll leave that all for you to decide.
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I am guessing the article is correct. Most McDonalds are just franchises. As such in places like SF it does make sense to use the land for more profitable purposes.
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Hey, cities change, along with tastes. Affluent flight to the suburbs has been replaced, in many cities, by gentrification and movement back to the city.
I even read that the mission district and other areas of SF have become bedroom communities for wealthy tech people from Silicon valley. A reverse commute!
This has put pressure on rents, and I''m sure low end retailers and food producers like McDonalds and the Dollar store are getting priced out of the community.
How are you going to stop it?
Of course,SF has always been expensive. It sits on a narrow penninsula where expansion is difficult. I remember, in 1990, a friend of mine moved to the area. He's an anesthesiologist at a SF hospital. And he chose to commute over the bridge to Oakland every day because "the city" was just crazy expensive.