Business owners and neighbors are sounding the alarm on a proposed Club Pilates studio on Valencia Street that they say would change the corridor’s character.
The pilates studio, which follows a franchise model and says it has more than 1,200 locations across the country, has an application to open at 1034 Valencia St. between 21st and 22nd streets, just four blocks from locally owned EHS Pilates.
It has a hearing at the San Francisco Planning Commission on Oct. 2, where merchants will ask the city to shoot it down.
“People are really concerned about it,” said Eileen Rinaldi, president of the Valencia Merchants Association and owner of Ritual Coffee, next to the proposed studio.
“The feeling is that we’ve worked really hard to make sure that Valencia Street is a really special destination for people. Any formula retail business that comes in is a threat to that.”
Historically, Mission businesses and residents have made it onerous for any enterprise to open a storefront in the neighborhood deemed as “formula retail,” which is any business with more than 11 locations nationwide.
Club Pilates has more than 1,200 across the world and bills itself as “the largest Pilates brand and studio network worldwide.” It is a subsidiary of Xponential Fitness, which franchises several boutique gym brands, like Pure Barre and Cycle Bar.
But the owners behind this franchise, CJ Liu and Carrie Wu, argue that their Club Pilates is not part of a chain because, like any franchisee, they operate independently.
“Our business is independently managed. We are not a corporate chain. We’re two of us in the business,” said Liu on Wednesday night during the first of two community meetings Club Pilates will hold before the Planning Commission decides on whether it has to apply for a conditional use permit.
As written, the formula retail code does not make exceptions for franchisees.
If a business has at least two “standardized features” — like same decor, signage, uniforms, trademark, or servicemark (the same as a trademark, but for a service, instead of an object that can be purchased) — and more than 11 locations, it’s likely that the Planning Department will deem it formula retail.
The proposed studio is expected to check the box on at least two of those features.
Liu said he is hoping the Planning Commission will determine otherwise. “We’re locally operating the business, that’s very different from a traditional national chain,” he said to two people, both Mission residents, who showed up to hear him plead his case.
Liu and Wu held another neighborhood meeting earlier, on July 10, they said, but no one showed up.
The two owners have financed their business independently from Club Pilates, he continued, and it is up to them to operate and make decisions about their studio.
Mission businesses and residents have long battled formula retail in the neighborhood, and the city has largely acquiesced.
In 2009, American Apparel failed to open at 988 Valencia St. after facing significant community opposition. In 2013, the men’s clothing brand Jack Spade abandoned its plan to open a shop at 3166 16th St. after the Board of Appeals voted to take up the matter of whether the store qualified as a formula retail — enough to convince the business to pull out.
If the Planning Commission does not approve Club Pilates’ is conditional-use permit, it could still open up on Valencia. But Liu and Wu will need to appeal the commissioner’s decision and obtain a conditional-use permit through the board of supervisors.
Opening up Valencia Street to a business like Club Pilates could increase rents and displace small businesses, said Sean Quigley, owner of Paxton Gate. “A chain that’s that big is disconcerting,” said Quigley.
According to the Local Multiplier Effect, which is based on data collected by the private research firm Civic Economics and is called out in San Francisco’s Formula Retail Code, locally-owned businesses generate 3.7 times more direct local spending than formula retail.
It also states that money generated by independent businesses is more likely to circulate within the neighborhood and city, compared to that generated by formula retail.
Liu and Wu said their business has proven to be loved by neighbors in their other three locations in Diamond Heights, Nopa and Mountain View. If approved, they said, Club Pilates will create jobs, collaborate with other businesses, offer free classes twice a quarter and offer two instructor scholarships to Mission residents.
Asked if the pair would appeal a negative vote at the Planning Commission, Liu and Wu said they did not know yet.
Another community meeting will be held on Sept. 29 at 1034 Valencia St. at 6 p.m. The hearing at the San Francisco Planning Commission is currently scheduled for Oct. 2.
At first, I sort of agreed with the people who were rolling their eyes–like what’s the big deal? Especially because of all the shuttered storefronts, which make me sad. But then I thought about Hayes Valley, which is nice, but also insanely expensive–really just a luxury mall disguised in historic Victorian buildings. And while that serves a purpose, I like that Valencia isn’t that. There’s more room for weirder, unique stuff, like Paxton’s Gate or the Pirate Shop or Arizmendi’s or Dog-Eared books or Valencia Cyclery. So, I’m glad that they are fighting to keep things smaller and local. I think if you let one chain in, it’s a slippery slope towards Hayes Valley.
That vacant store has been closed for ages and is an eyesore. These franchises are all locally owned and generate jobs and tax revenue for the city. It is better have chain stores than everyone going to Amazon!!
No strong opinion on the Pilates franchise thing but I find this griping from the ritual coffee person to be pretty goofy given the aggressive expansion attempts that business has carried out over the years (haight, hayes, where else?). I guess we all can decide for ourselves who can legitimately play the small business card, how and when. Anyone who cares what I think can easily guess…
Ah, the big money, pro-real estate / free marketers in the public square now want to role back our ban on formula retail. Amazing. So, we should turn this town into an ugly, boring skyscraper metropolis where we have the choice of Burger King or Applebees for fine dining – and Amazon for everything else. No thanks. If anything, stiffen the formula retail ban and tax the corporate chains.
A quick google search is telling me that Ritual has 4 locations, and they opened 20 years ago. That’s a far cry from 1200 locations, or even the “11+” that triggers formula retail.
A good follow up with the owners would be to ask why they don’t just operate independently vs. using the franchise? What does the franchise do to help them be able to operate vs. if they did it on their own? People in SF need to be more educated about how businesses work. The more you get to know something, the more empathy you may have for these owners. Opening a business is much more work and stress than getting a job.
What I wish the city paid more attention to was the *nature* of businesses. Having pilates, or a preschool (ex -Borderlands), or an urgent care is bad for a retail corridor. Retail needs to be surrounded by other retail. Retail corridors should be for shopping/browsing, with people going from one store to another. People working out aren’t also clothes shopping. People dropping their kid off at preschool aren’t looking for tchotchkes. People having a burn treated aren’t looking for a scone.
What a surprise. Residents would rather have empty storefronts than a business (even if chain whatever that means when T-Mobile and McDonald’s are in the neighborhood). Maybe empty stores is the “character” people want.
I have no stake in this matter. I was born and raised in SF but live in Colorado. I am a Club Pilates member and feel strongly that they offer a welcoming community for fitness and wellness. Many of the smaller pilates studios cater to a more advanced hardcore athlete. Not a good fit for many. I find it hard to believe that any neighborhood would discourage such a place. I hope they reconsider. It took me a long time to find an exercise that made me feel this strong without judgment I would hate see others not have that option. There are a lot more serious matters to fight in this world. This is not one. Pick your battles wisely.
Are you serious? If you’re in desperate need of space, the former Van Moof store has been sitting empty for like a year. Baggu just moved in but only took half the space, perhaps you can take the other half. If that’s too expensive, maybe you can rent the old Baggu spot half a block down lmao. That’s just two options, and there’s plenty more of where that comes from’
Has the SF Planning Commission ever held a meeting on Easter? On Christmas Day? No. They have not. It is offensive and inappropriate to hold this public meeting, or any meeting where the public is entitled to be heard, on Yom Kippur, the holiest of the High Holy Days of the Jewish Calendar.
According to McDonald’s (corporate.mcdonalds.com),
“ McDonald’s is the world’s leading global foodservice retailer with over 44,000 locations in over 100 countries. Approximately 95% Of McDonald’s restaurants worldwide are owned and operated by independent local business owners. ”
Being a franchise is not being independent.
Given the number of vacancies on Valencia St now and the extent to which (some) Valencia businesses complained about the a drop in foot traffic in the last few years, I find it truly staggering that (some) are now fighting a Pilates studio.
The demographic who go to Pilates classes go for coffee with friends before and after class (hello Ritual!!). They buy fun cards and novelty gifts at “quirky” stores. If it had survived this long I bet they would go to Scarlet Sage for god knows what expensive supplements. I see no reason that any business (apart from EHS) should be holding out for a “better” neighbor who might or might not come later, leaving the space empty in the meantime. Times are tough. Running a storefront business is tough any time. Business owners need to grow up and play the cards they are dealt.
Valencia merchants want to wash their hands of chain pilates?
👍🏻, but don’t quit your day job just yet.
Are they willing to give free memberships to LatinX and LGTBQ community members ? What are they going to do more the community ? If the class has 20 students , how many will be affordable ?
Any donations to calle24 to sponsor community outreach and events ?
i think calle24 will be just fine, don’t worry
Weird to think a little Pilates studio would make people feel so threatened. Sad
Well the point is, they have a not-so-little brand behind them.
The question is if the store falls under formula retail by meeting SF Planning attributes:
– eleven or more other retail sales establishments in operation .. located anywhere in the world.
– maintains two or more of the following features: a standardized array of merchandise, a standardized façade, a standardized décor and color scheme, a uniform apparel, standardized signage, a trademark or a servicemark.
https://sfplanning.org/permit/chain-stores
So planning is going to go down the list and determine if they should be allowed to move forward or not.
So how did the T-Mobile store at 17th and Valencia get a pass?
Likely conditional use authorization, what Club Pilates might end up pursuing later on as mentioned in TFA
It’s very sketchy. Mission Local did an article on the one at 20th and Valencia that operated illegally for years, but is now closed. Is the one at 17th properly permitted? I don’t know.
That said it makes sense for a T-Mobile store to be allowed in the Mission, because there’s no competing independent non-chain wireless provider. They are a needed resource for the community. However, the T-Mobile store should be on Mission, not Valencia.
https://missionlocal.org/2014/01/how-t-mobile-evaded-chain-store-law-for-four-years/
What a bunch of smugly superior snobs. Any business is needed to stop the ongoing spread of boarded up storefronts. Not just their little fiefdoms of pompous retailing. Stop sizeist business bigotry !
What boarded up store fronts? I’m looking for a spot to open on Valencia and can’t seem to find anything that is actually for rent!
What I find interesting about Valencia Street how there are a variety of yoga, and pilates studios on Valencia already. Not 2 -3 blocks from where this business wants to be. When I think of the street I’m not looking for a yoga/pilates spot every corner, (To be fair, I’m more adept at looking for froyo shops.) What I do love about Valencia is how quirky it is. I’m not sure that the owners are being honest in their portrayal of their businesses and their subsequent relationship with their parent franchise.