Popular California Bakery Cancels Expansion Due to Bizarre City Permitting Rules
A San Francisco bakery owner was forced to abandon plans for a second location after encountering complex and seemingly contradictory city regulations.
Sophie Smith, owner of the acclaimed San Francisco bakery Butter & Crumble, has announced the cancellation of her planned second location due to insurmountable permitting hurdles imposed by the city. The expansion, intended to be a dedicated cake shop, was to be located at 301 Union Street.
Butter & Crumble, which opened its first shop in 2023, has garnered a significant following for its pastries, cakes, and signature "cruffins," often drawing long lines. The expansion plans were publicly announced in February.
Smith stated she invested a year and substantial funds in planning, including architectural assessments and preliminary construction studies. She also trained staff for new roles at the 1800-square-foot commercial space.
The primary obstacle emerged when it was discovered that the intended commercial space comprised two distinct lots owned by the same landlord. This configuration created complex regulatory challenges. "The problems this creates are potentially massive, as you cannot just join two buildings for a commercial use like mine," Smith explained, citing requirements for new rollup doors, separate evacuation routes, and fire sprinklers on both sides, in addition to zoning complications.
Smith had reportedly received assurances from the landlord and a city department that the space, which had historically been used as a single commercial unit, would present no issues. However, in July, the city's Department of Building Inspection identified a permit discrepancy indicating a wall previously existed between the two lots, with no record of its removal.
City Supervisor Danny Sauter commented to the San Francisco Chronicle that the situation was "a unique set of circumstances" related to the specific property. He noted that the removal of a wall, which should not have occurred according to previous permits, raised safety concerns.
San Francisco's Office of Small Business expressed regret for the setback and pledged continued support for Smith as she explores future options. The bakery owner remains determined to pursue a second location despite this disappointment.
Mayor Daniel Lurie has been working to streamline the city's permitting processes to support business growth. Butter & Crumble's current location is near Fisherman's Wharf.