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Popular Japanese restaurant Hinoya Curry forced to temporarily close storefront due to S.F. rule discouraging chains - San Francisco Chronicle

Less than a month after Hinoya Curry SF opened its first U.S. location in San Francisco, the popular Japanese curry restaurant must close its storefront, according to a San Francisco law for chains.

The restaurant posted a sign to its store and its website, saying it’s undergoing a permit process required of all chain restaurants in the city in most neighborhood retail districts outside of downtown. It has opted to not display its logo, papering over its sign until it is officially approved to conduct business at 3347 Fillmore St., the notice said. Stores undergoing the process cannot allow customers in, though the restaurant’s notice said that it “will continue to operate and serve our customers during this process.” Hinoya Curry did not return requests for comment.

Hinoya Curry is a Japanese chain restaurant, and when it debuted in the Marina neighborhood, long lines formed for its sweet-and-savory curry and pork katsu. Although it has no other locations in the U.S., it has more than 60 worldwide, far above the 11 required for businesses to be considered “formula retail” under city rules.

San Francisco requires chain stores and restaurants to go through a permit process known as conditional use authorization in most neighborhood retail districts. Such permits are usually required when the use of a space is changing — like a retail site becoming a restaurant. But all chain stores and restaurants must get one to open in most areas outside of downtown.

Residents in the Marina district were quick to criticize on social media how the city’s rule was too stringent in the midst of an economic crisis brought on by the pandemic.

“It’s one thing to make things harder for the McDonald’s and Starbucks of the world, it’s another thing to create a bunch of extra hoops for places opening their first US spot, in a long vacant storefront, and with a cuisine unavailable in at least a mile and a half radius,” Marina resident Eric Kingsbury said on Twitter.

Last fall, voters passed Proposition H, which sought to streamline the city’s tedious, months-long process for new retail or restaurant permits by requiring reviews within 30 days, speeding up the opening process. However, the measure doesn’t apply to chain stores. The Planning Commission confirmed to The Chronicle that chain store laws have remained unchanged during the pandemic.

Banning chains favors small, local businesses, supporters say. San Francisco enacted a ban on chain stores in 2004 through a series of laws and a ballot measure, and amended the law to address international chains in 2014. Except for Chinatown, Hayes Valley and North Beach, which have outright bans on formula retail, chain stores can set up shop after getting approved for a conditional use permit, a process that can take up to six months.

Prior to the pandemic, the city’s streets were dotted with empty storefronts, a plight that’s been worsened by the health crisis. Supporters of adjustable, lenient laws during the pandemic point to the host of empty storefronts in San Francisco and say chains could help fill them.

“I think now is a good time to re-look at what San Francisco needs and what types of thoughtful reevaluation can happen,” said Laurie Thomas, the executive director of the Golden Gate Restaurant Association, a trade group. “As smaller restaurants and independents have been financially decimated, it begs the question: Who will be able to continue to operate, let alone start a new restaurant without access to significant capital?”

Shwanika Narayan is a San Francisco Chronicle staff writer. Email: shwanika.narayan@sfchronicle.com Twitter: @shwanika Instagram: @shwanika

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Popular Japanese restaurant Hinoya Curry forced to temporarily close storefront due to S.F. rule discouraging chains - San Francisco Chronicle
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