2 Years of Rules and Permits Later, an Ice Cream Shop Opens
Lawmakers consider reforms to ease the process of starting a small business in San Francisco
San Francisco Mayor Ed Lee’s office announced last week a $1.5 million fund to help small businesses, calling the sector the “Backbone of SF Economy.”
If true, then the saga of a new ice cream shop seems to indicate that the city needs a good chiropractor.
The Ice Cream Bar opened Jan. 21 in the Cole Valley neighborhood — an homage to the classic parlors of the 1930s, complete with vintage soda fountain and lunch counter seating. It has become an immediate sensation, packed with both families and the foodie crowd, savoring upscale house-made ice creams and exotic sodas (flavorings include pink peppercorn and tobacco). The shop also employs 14 full- and part-time workers.
But getting it opened wasn’t easy.
“Many times it almost didn’t happen,” said Juliet Pries, the owner, with a cheerful laugh.
Pries said it took two years to open the restaurant, due largely to the city’s morass of permits, procedures and approvals required to start a small business. While waiting for permission to operate, she still had to pay rent and other costs, going deeper into debt each passing month without knowing for sure if she would ever be allowed to open.
“It’s just a huge risk,” she said, noting that the financing came from family and friends, not a bank. “At several points you wonder if you should just walk away and take the loss.”
Pries said she had to endure months of runaround and pay a lawyer to determine whether her location (a former grocery, vacant for years) was eligible to become a restaurant. There were permit fees of $20,000; a demand that she create a detailed map of all existing area businesses (the city didn’t have one); and an $11,000 charge just to turn on the water.
The ice cream shop’s travails are at odds with the frequent promises made by the mayor and many supervisors that small businesses and job creation are top priorities.
The matter has also alarmed some business leaders, who point out that few small ventures could survive such long delays.
“Someone of lesser fortitude would have left three months into it,” Ted Loewenberg, president of the Haight Ashbury Improvement Association, said of Pries. “Through these hard times we’ve heard all the rhetoric about streamlining the process, about one-stop shopping. It hasn’t happened.”
That could soon change. An ordinance easing the process for opening a small business is expected to be considered by the supervisors within weeks. It has already been approved by the planning commission.
“The city has had the reputation of being a difficult place, and a hostile place, to do business,” said Mark Farrell, the city supervisor who has the most private-sector experience (he still operates a venture capital firm). “We’re changing the dialogue.”
According to Farrell, a critical shift occurred last year when supervisors approved a tax incentive to keep the headquarters of Twitter, the social network, in the city after the company threatened to move.
But he admitted that such actions were relatively easy compared with reforming the city’s entrenched bureaucracy. “To change the inner workings of government is a longer proposition,” he said.
Christina Olague, a former Planning Commission president who was recently appointed city supervisor, said that planning codes governing businesses had ballooned over the years to become hundreds of pages long. “It’s so convoluted,” she said. “It’s so difficult for these businesses to move ahead.”
Even the planning department itself is calling for reform. “Hello City Planner,” an animated cartoon produced by the department and posted on its website, depicts a litany of farcical city hassles faced by a woman applying to sell ice cream.
“Wow! That’s a long time and expensive,” the ice cream lady says after the planning employee in the animation explains the slow process and high fees.
Cases like Pries’ inspired the video, although some believe her runaround was exceptionally absurd. Even after she acceded to all the city’s demands, her paperwork sat unprocessed for months. Pries would not say exactly how much it all cost, including construction, but smiled and nodded when asked if it was in the hundreds of thousands of dollars.
And yet, remarkably, she does not complain. Pries is as effervescent as her sodas, and excited about her prospects — looking ahead, rather than back. Perhaps this optimism is why she finally prevailed, when so many others would have given up.
This article also appears in the Bay Area edition of The New York Times.







M L
Vanilla is the new flavor of the month. Thanks to stoner supes and media snoops. We all scream about the Ice Cream. Permits notwithstanding.
Rob Anderson
$20,000 for permits and $11,000 just to turn on the water? That's pure extortion. Along with its aggressive attack on city drivers via parking tickets and parking meters, our city government is beginning to resemble a criminal enterprise preying on its own citizens.
Howard Epstein
This unintended consequence is the result of a couple of decades of "progressive" governance based strictly on far-left ideology.
LawSci
The genious of government controls will save us all from the evil business people.
john jean
not surprising and absolutely the norm, unfortunately.
we were planning to open in an existing business a coffee window (similar to dynamo on 24th in the mission) for high end coffee in the style of italian coffee bars. but a new regulation is in place since last year that regulates coffee as FOOD! therefore the maximum size of the coffee window can be only 20"x20". planning dep signed off our original plans, now health dep comes and says no!
i just heard that a grease trap is required as well in a coffee beverage business (wtf! ?????).
those are just a few examples of regulations for regulations sake with now actual reason behind it. or are there coffee poisoning cases piling up?
we will take our business somewhere else...
Scott James
Hi John,
Thanks for sharing your experience. Some of the reforms underway might remove some of the obstacles you faced - some of those nonsensical square footage rules are being scrutinized - although it sounds like any changes will be done too late for your situation.
Sorry to hear about what happened to you.
Best,
Scott
john jean
hi Scott,
i believe it when i experience it. usually it's all empty promises.
in NYC though the implemented a fast track system in late 2010. a friend opening a restaurant last winter in queens got all his permits (health, building, fire, etc.) within 2 weeks!! can you believe that??
in another case here in SF, friends of mine moving an existing establishment within a district. they got approved at every level (cu at planning comm., supervisors, police, etc.). now it's hung up on state level because the ABC is involved. the paperwork is on their desk untouched since last august (!!) waiting to be forwarded to sacramento. the business owners now are going for a temporary license, but the process for the demolition permit is moving at a snail's pace because of changed rules issued by the, you guess it, health dep!
they are paying rent for a year now without being able to do anything with the space!
Joe M
Thanks for the article, Scott. I've worked in salons in SF since 1998 & am repeatedly asked by clients me why I don't have my own shop. Juliet Pries' experience says it all. I've heard her story a number of times from people sitting in my chair. I can't imagine risking relationships with family & friends, having received loans, while I wait on SF government to figure out how to do it's job. I'm glad Pries stuck with it, can't wait to stop in for some ice cream! Here's another story along the same lines: http://www.sfexaminer.com/local/2011/08/mission-bowling-alley-threatened-thousands-dollars-fees