this post was submitted on 17 Apr 2024
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[–] partial_accumen@lemmy.world 2 points 6 months ago (3 children)

There is no way it costs $2 mil to set up a few meetings and write a report.

You didn't read clearly. $600k just to cover the mandatory losses, leaving $1.4m for the rest of the compliance with the law. If you think $1.4 million is in total costs (extra labor, lawyers, venues for meetings, courting other grocers to come to the area), I don't think you have a good experience with business at this level. Its at the edge of my knowledge so $1.4m may be way too low.

With thriving businesses, I’m talking about new grocery stores. The bill does not cost nearly enough money to prevent someone from starting up a whole store

If I am a grocer, why would I risk setting up a new store in a place with this kind of law? I can go to any other city in the nation and not have the risk found here with this new law.

If they’re operating at a loss, wouldn’t they close anyway? You’re talking about a business decision that only makes sense for a store that’s on the brink of closing anyway.

When you're looking at forecasting for a business, you project into the future where your profitability is. Its not a perfect science so you may allow for some loss months to see if you can improve operations. With this law, its too expensive to risk extra months of loss without those going to the notice period.

The whole reason SF lawmakers are creating this law is because grocery stores are leaving, they only leave if they are losing money.