How lost business is pushing this Marin County downtown to find a new path forward
Michael Freed, chef and owner of Bogie’s Too in downtown San Rafael, no longer counts on sales from the workforce that used to drive his breakfast and lunch business during the week.
He can’t afford to.
In a post-pandemic world, the best Freed and many of his downtown counterparts can hope for are the hybrid workers who make an appearance a few times a week.
From the dry cleaner and beauty parlor to the greeting card store and coffee house, the change has been across the board in this Marin County community.
“Think about how many times people go downstairs (from their office) just to grab a coffee,” Freed said. “In a downtown community setting, that must happen a thousand times a day.”
Downtown San Rafael is comprised of a mix of businesses and cultural arts. The Smith Rafael Film Center is a downtown landmark that’s been showing art films since its 1920 founding, and the downtown’s year-round vibrancy is defined by a variety of events, including farmers markets, summertime concerts and holiday gatherings.
San Rafael’s downtown business decline has come as many nearby companies have either gone 100% remote, reduced their workforce or left the area altogether.
In October, after four decades in San Rafael, multinational software company Autodesk pulled up stakes and moved its nearly 600 workers to San Francisco, as the Business Journal previously reported. And drug maker BioMarin Pharmaceutical Inc., which has its global headquarters in downtown San Rafael, laid off 94 workers — 62 of which worked in downtown San Rafael.
Out of his comfort zone
For more than 30 years, Freed ran Bogie’s Café near the Marin County Civic Center before he closed and relocated his eatery in 2018, calling it Bogie’s Too, to 1335 Fourth St. in downtown San Rafael.
When the pandemic hit, Freed jumped on an opportunity to join the state’s Great Plates Delivered Program, which was set up to help older adults who were sheltering in place, unable to access meals or ineligible for other nutrition programs.
“That is what saved my business,” Freed said. "Otherwise, I probably wouldn't have made it through.”
After the meals program ended in July 2021, he began to feel the same loss of business his downtown neighbors were going through.
He purchased a full liquor license, allowing him to serve beer, wine and spirits, and began renting out space in his restaurant for events.
In January, Freed began dinner service.
“I'm seeing a lot of new faces I’ve never seen before,” he said.
Still, that new business isn’t coming cheap — or even bringing in much revenue yet.
“Food and labor costs have taken a huge bite out of any increase in business,” he said.
Freed also has increased his marketing spend from a maximum of $300 a month pre-pandemic, to between $1,500 to $2,000 a month today.
“I am way out of my comfort zone,” said Freed, who now uses food delivery and reservation services such as Door Dash and Open Table, in addition to boosting his business’ presence in advertising and posts on Facebook and Twitter.
Not sustainable
Ryan Spencer, owner of Libation Taproom & Bottle Shop, located at 924 B St., is a member of downtown San Rafael’s business improvement district’s events committee.
“We pretty much put on all the events that go on downtown,” said Spencer, whose business also has suffered from the pandemic. “The business improvement district raises money and throws different events to try to bring people to downtown San Rafael so that they then, hopefully, go into businesses and patronize them.”
Spencer said Libation Taproom & Bottle Shop, which he opened in October 2018, has yet to fully recover from the pandemic.
“We’ve been losing $10- to $15-grand a month for two years now,” he said. “It’s not sustainable whatsoever.”
Spencer noted the pandemic not only drove away office workers, but also residents who left the city to find more affordable housing.
“We (used to) have a pretty good happy-hour rush where people would come in after work and have a drink or two, and grab something to take home with them,” he said.
Libation had its best month ever in February 2020, Spencer said. At the start of 2022, he was beginning to see improvement in his revenue numbers, but that also has been stymied.
