San Francisco’s Tenderloin neighborhood opened 2026 with a sharp decline in sales‑tax revenue. The first‑quarter figure dropped 40 percent to $1.02 million compared with the same period in 2025, according to the Controller’s Office.
Why the numbers matter
Even though the 2026 total remains slightly above the first quarter of 2024, it is far below the pre‑pandemic level of $2.12 million recorded in 2019. City officials caution that a single quarter’s data may not fully reflect the neighborhood’s economic outlook, especially since many businesses file tax information late or with errors.
COVID‑19 legacy and the road to recovery
During the pandemic the Tenderloin suffered one of the steepest revenue drops among the city’s 37 neighborhoods, falling to under $500,000 by the end of 2020. Kate Robinson, CEO of the Tenderloin Community Benefit District, attributes much of that loss to the disappearance of foot traffic from city, state and federal workers who once filled the area’s bars, restaurants and shops.
“A lot of it was attributed to the lack of city, state and federal staff members coming into the office,” Robinson said. “Bar and restaurant owners really relied on happy hour, lunch time and dinner time meet‑ups right after work.”
Signs of a bounce‑back
Despite the recent dip, the Tenderloin has shown resilience. Sales‑tax revenue jumped 20 percent from $4.58 million in 2024 to $5.5 million in 2025, one of the strongest neighborhood gains citywide.
Robinson notes that targeted efforts to fill vacant storefronts, which began in 2023, are beginning to show results. The Larkin Street Revival project, funded by a $5 million donation from cryptocurrency entrepreneur Chris Larsen, has installed decorative security gates and new lighting along the corridor, and subsidized the “Live on Larkin” block‑party series that launched in May.
Mayor’s office encourages office‑return
In August, Mayor Daniel Lurie ordered city employees to work in the office at least four days a week, a move Robinson says is restoring foot traffic to the area.
City grant programs fuel optimism
The Office of Economic and Workforce Development (OEWD) has expanded its Storefront Opportunity program. In 2023 the program offered up to $50,000 to entrepreneurs willing to revitalize vacant spaces; this year the maximum grant has risen to $100,000 and now includes additional support for businesses in high‑needs neighborhoods.
Small‑Business Programs Administrator Jossiel Cruseta explained that many property owners hesitate to lease space without a solid business plan and retrofit funds. “Helping a small business owner with both can pay off in the form of increased sales‑tax revenue in the future,” Cruseta said.
This summer four new grant recipients announced plans to open on Larkin Street: Tender Noodle at 721 Larkin, Ruru Kitchen at 448 Larkin, Reggie and Maude’s at 460 Larkin, and Tender Heart Thrift Store at 683 O’Farrell. All are still preparing for launch.
Earlier grant winners have already opened: Falafelland on 265 Golden Gate Avenue (December), the bookstore‑coffee hybrid Niebla on 374 Golden Gate Avenue (mid‑August), and Sheba, a Middle‑Eastern clothing and specialty‑goods shop at 318 Turk Street (Sept. 18). LibreTe is slated to open at 583 Eddy Street.
Additional small‑scale assistance
OEWD also provides modest grants for existing businesses needing interior or exterior repairs. In 2022 the office awarded nearly $120,000 for such improvements. This year the budget for these grants has doubled to $1 million.
Robinson recalled the pandemic’s impact on storefronts: “During the pandemic, so many businesses had their windows smashed and they couldn’t get ahead of that.” She added that the new grants are helping owners replace damaged windows and attract customers again.
Early signs of renewed activity
Although the full effect of the grants will not appear in the current sales‑tax data, Robinson reports seeing longer lines at iconic eateries like Saigon Sandwich and a noticeable increase in patrons at new bars and restaurants along Larkin Street.
“A lot of people don’t know the greatness that exists here,” she said. “We’re just going to keep going.”
Original reporting: Mission Local — read the source article.
