Tolgay Karabulut's baklava bakery struggles amid San Francisco's AI boom

Tolgay Karabulut has been running his baklava bakery in San Francisco since 2022, but he is struggling to make ends meet amid the city’s booming artificial intelligence industry. While the tech sector attracts significant investment and talent, small business owners like Karabulut find themselves in a challenging position as rent prices soar and consumer habits shift.

The AI boom in San Francisco has led to a dramatic influx of tech workers with high disposable incomes, but it has also raised the cost of living. Many small businesses are finding it hard to compete for customers and resources. As AI companies continue to grow, traditional businesses are often sidelined, with fewer locals frequenting neighborhood shops. This shift is exacerbated by the increasing reliance on online delivery services, which can often bypass small, local establishments.

Karabulut's bakery, known for its rich and authentic baklava, has seen a decline in foot traffic as more residents opt for tech-driven convenience over traditional shopping experiences. He reports that his sales have dropped significantly compared to his first year in business. The rising costs of ingredients and rent have forced him to rethink his business strategy. He is now exploring partnerships with local cafes and restaurants to broaden his customer base.

Looking ahead, small business owners like Karabulut face an uncertain future. The city’s landscape is rapidly changing, with new developments catering to the tech crowd. To survive, small businesses will need to adapt, perhaps by enhancing their online presence or finding innovative ways to attract customers. The situation highlights a broader tension in urban areas where rapid economic growth can displace local businesses and alter community dynamics.