and bureau of labor statistics. these industries host over 80 million customers per year. as many of our estimates are, these are conservative estimates. restaurants account for 30% of the total. the numbers for all of the academy -- all the categories ranged higher. as a group, they generated $4.2 billion in spending in san francisco in 2010. bottom this spending gets recycled back into the city economy in a number of ways. first of all, payment in wages to the people that work in the industry. the industry also spends $670 million per year just on food. another $580 million on local beverages. another $370 million on local performers in global business

services. it gets recirculated to provide opportunities for other industries. what's there are a lot of restaurants that are full- service restaurants that have bars -- >> there are a lot of breast route -- and what restaurants are full service, for those significant number of restaurants that have both, the restaurant category that includes restaurants with bars. >> absolutely. all the restaurants have an alcohol license. supervisor wiener: right, but sometimes it is not just a bar where people are waiting to be seated, but a destination bar, still considered a restaurant? >> it would be. it might be bigger than it would appear at first glance. any bar that serve food would be

classified as such. supervisor wiener: thank you. >> we estimated that might like businesses contributed a minimum of $55 million per year in tax revenue to the general fund. they were readily able to come up with these estimates by looking at the sales table, but there is an additional amount that comes from things we could not quantify it, like property tax payments and fees paid to the city. this is a map that indicates where light by businesses are located in san francisco at the zip code level. these are heavily concentrated in what we might call of the court of the city. but north-south fisherman's wharf, union square, chinatown, tenderloin, etc. as we look at the sales tax they that and how much of the sales, the city's sales come from night by the establishment in the

area, it is about 80%, with 36% coming from that upper northeast quadrant, and another 14% from the marina, 14% from selma, 8% from the castro area, and another 6% from the japan town area. as i mentioned with our consultants, resurveyed over 300 patrons at my life establishments in these areas in the city. we wanted to find out what they're spending was and why they came to san francisco, in where they came from originally. on average, 43% of patrons that these businesses on any given night our san francisco residents, 57% live outside the city. a 11% come from elsewhere in california. 10% come from other countries.

36% live in other bay area counties. this is a very vital and important element in understanding the economic role of night life. we will explain why in a minute. the first one of the reasons, we asked them how many times they had been out in san francisco. the residents that we caught, none of them were on their first time out. the ones that we did speak with go out several times a month. the interesting thing is that bay area residents who live in other parts of the bay area, about 80% of them also go out several times per month in san francisco. the visitors from further away, obviously not as frequent contributors to the san francisco might live, but we are getting a significant amount of spending coming into the city from nightlife commuters who come tripoli and spend in the

city, in the evening. we asked people what was there -- we stopped people and ask them survey questions at the businesses that they were attending, but it was not necessarily the main reason that they went out at night. we asked them what their main reason was. for residents, 38% were going out for no particular reason, they were going to make friends, public events, or were just out without a particular destination. the other groups of people not quite the same profile, 36% decided to go out for the purposes of going to a particular restaurant or a particular bark, another 9% going to a particular night club. looking at bay area residents, the nightclub numbers are much bigger numbers. one-third of the residents, regardless of where we caught up with them in the evening, came

to the city to go to a nightclub, emphasizing a particular role of those businesses as a magnet for drawing on an outside spending. a 39% of people were coming to a restaurant in san francisco. 12%, we thought that was a large number, were coming to an art gallery, that was the main reason they were coming to san francisco in the evening. crowds outside the bay area, but what is different. generally it is not the light like that brings people here from other states or countries. but night life is an important contribution to how much that visitor wind up spending. you can see that tourists windup spending considerably more per evening that a president. -- then a resident. again, the numbers are important. 31% from within the bay area came out at night, even if the

trip was not to see a show, they went out that night to see a show. the majority came out for any other reason, like tourist attractions. tourists, as i mentioned, the previous -- a roughly spend three times more than each resident. per head, they are a major contributor to city economic activity. i emphasize that when you are counting for economic impact, the spending in san francisco residents is nice, but their money is here anyway and they would spend it on something else. if it was not the businesses that brought in and tourists and visitors from the rest of the area, we would be losing that spending. it is important to recognize the draw of the night life for visitors to the city. when we look at the breakdown of spending by people who do not

live in san francisco, it worked out to about half the. about $2 billion of the city's $4.2 billion come from people that do not live within the city. this represents new spending that generates multiplier effects throughout the economy. we estimate that this spending supports 28,000 jobs in this city, about 5% of all jobs in san francisco. 19,000 in bars and clubs, with about 4000 spread across the other industries and other multiplier effects. to summarize, it is a major industry in the major part of the san francisco economy, but it has a particular role in attracting bay area risk -- visitors and also adding to the spending of tourists in san francisco that other industries cannot match. that combination of things is vital in it -- understanding the

economic impact. supervisor wiener: thank you. i think that the mayor's office will be touching on this, but one area that i do not even know how you would begin to measure is when you look at the draw of having a vibrant nightlife for workers, young workers who want to be here, in industries following that -- for example, a gambler type workers that want to be here, it makes them -- makes this a more attractive place. i do not know how you would go about measuring this, but do you have any thoughts? >> it would be difficult to measure in the would need a different survey, but the statistics of what we know to be true suggest that something like that is going on. when you see the number of young people that basically are coming to san francisco frequently for night life, in the think about, as you alluded to earlier, the importance in my life at framing

your sense of community, i would find it easy to believe that the critical mass of night life in san francisco is a critical draw for the people living here. we know, for example, that demographically san francisco is over-represented by people in the 20's and people who are senior citizens, the two groups that have more than -- where we have more of them that -- and other parts of the state. i would a imagine that that is exactly what you're talking about. captioned by the national captioning institute --www.ncicap.org-- thank you. -- supervisor wiener: thank you, great. i want to invite jason elliott from the mayor's office. >> thank you, supervisor, chairman. jason elliott, from the mayor's office. stole my thunder. this is a phenomenal study and i

think that the numbers are staggering. 80 million paying customers, billions in economic impact. it is shockingly amazing, how big these numbers are. there is a direct economic impact, and then there is the fact that this is what makes san francisco san francisco. technology companies want to be here for a number of reasons, predominantly because the talent is here. the talent is here, predominantly, because it is fun to live here. would love to my home town, this is what -- with love to my home town, this is what makes sense francisco the place. firms are expanding, they want to be here. that is not what is qualified so much as it is impact fall. the mayor, in recent days, has spoken of this topic and the reason to have targeted staff,

like we did with local manufacturing. we're going to focus on this in a sort of dedicated way, making the same commitment to night life, which presents its own unique set of challenges and opportunities, to support that industry. we, of course, want to receive input and feedback from the entertainment commission through your office, supervisor, and the night my community, about how best to support the community. we look forward to working through that. city government seems to be working with the well, just to reiterate. the reason that we can have a vibrant place for companies to relocate here is because it is a vibrant place to live, the night by opportunities. thank you for commissioning this study and thank you to the comptroller's office for doing such a good job. any questions?

supervisor wiener: thank you. next i want to invite up jocelyn from the entertainment of it -- jocelyn, from the entertainment commission. we have three entertainment commissioners here. commissioner anaconda -- yes? you are here? as well as speaker lee and brian. >> commissioner perez. supervisor wiener: i did not see you back there. thank you for coming. >> good afternoon, supervisors. what mr. elliott said, that was music to my years. we are thrilled and want to thank supervisor we're -- supervisor wiener, obviously, for bringing to light these numbers that are so important. the business of night life is hard and everyone knows it.

my part in that, the entertainment commission's part in that, makes it easier at times, but we feel important about that. i want to say that besides thinking supervisor wiener and, of course, the controller, i want to thank the industry itself. they have worked really hard, as they know, to professionalize themselves, to minimize the incidents that have occurred, making my job easier. i hope that they continue to do that in specialized every part of their business, to keep up that good work. we wanted to definitely highlight the mayor's commitment to a position, essentially, in the office of economic development, to work with the industry and our

commission to figure out how we can best support it. government in the past has been an impediment. again, i am part of government. i want to move us all into the position of being a partner with this industry, and i think that the government will definitely benefit from that. we are aware that the mayor's office, and the board as well, have been using culture, arts, entertainment to develop that market. personally i have seen, for a few years, people developing the southeast sector of san francisco as well, because land use really allows for a lot of activity in that sector what you saw is indicative of where planning allows entertainment and where it does not.

to be reminded that while there is a tremendous amount of the value in this industry, there's a lot of san francisco that does not allow entertainment at all, of which is a good thing. there are neighborhoods in san francisco that are preserved through land use, keeping those neighbors feeling comforted by the fact that they will continue to be primarily a residential and always there neighborhood first. i do not want to harp on this court -- on this for too long, but we are here to work with the industry and you, supervisors, in your district, to make sure that my life is safe, responsible, and that we are doing a great job of it. thank you for your time. supervisor wiener: thank you. any questions? great. is chris here?

from the office of small business. >> good afternoon, supervisors. regina apologizes that she was not able to be here. i have a brief statement on her behalf. the office of small business and small business commission have been supporters of nightlife economy and we're pleased to hear the results of this economic study. just as we hear about innovation in this traditional economy, we need to remind ourselves that the the other nine-five economies are equally debated. after today we find out it is overall important to the economy here. we remain committed to working with the entertainment commission, to promote, advocate, and support this sector. as permitting is under the purview of this sector, there are a number of areas where the office place a supporting role about employer mandates, permitting, planning and other

areas of city in the street. recently, we worked with the entertainment commission are pleased to hear that businesses are taking advantage of this exciting new kind of permit. but look forward to other opportunities to partner with the commission -- we look forward to partnering with the commission on similar opportunities. in the form of direct and indirect spending, other sectors, like security companies, a cpa's, payroll, and other industries see significant benefits. let's not forget how tightly tied entertainment is to itself. directly benefiting from robust entertainment sector. additionally, vibrant nightlife helps to attract employees of the traditional light live -- not like to the city. the office of the small business commission thank the supervisors for calling this report. we appreciate the work that has

been undergone to appreciate -- to support it. supervisor wiener: before we get to public comment, i know we have four entertainment commissioners here in my wonder if any commissioners wanted to make comment. in order to be careful about the brown act, may be only three of you should speak since we have a quorum of entertainment commission here. but if any of you would like to make any comments, feel free. commissioner lee? >> thank you, supervisors. again, this impact study, i was a business owner for many years in san francisco. i know how much i pay every year, now everyone else knows how much i pay. we recently remodeled our facilities this year. unfortunately, be were down six months, but occasionally every month we would have a little party. what happened is, we did open

call for jobs and we had over 150 people applied. unfortunately, we are currently doing about 45 employees right now. it was amazing to see how many young people are looking for jobs. they are all students. many of them cannot work full time. we offer them a part-time situation. as far as jobs and everything else, this is a great thing and i am glad that this study is out. as far as club owners are concerned, we are in new generation -- i am not, but the new generation understands that public safety is number one. i think they are trying to do their best to work with their neighbors, and there is still a lot of work in progress. supervisor wiener: thank you, commissioner. ok, we will open it up to public

comment. i have a hand of cards for those who may have been arrived late. -- i have a handful of cards. for those who have arrived late, please turn your cards to the clerk. each public comment turbo have three minutes to speak, more than the usual two minutes. when you have 30 seconds left, you will hear a short, soft bell. when your three minutes is over, you will hear a loud bell. i will call up the cards that i have. [reid's names] -- reads names] >> thank you, greetings, supervisors. in the co-chair of the

california music and culture association. we're thrilled with the results of the economic impact study and we thank supervisor wiener for his leadership on making sure that this study happens. this proves what we already know. the night by the industry is not only an important part of the san francisco cultural fabric, but a major player in the economy. we know that many people come here for the vibrant arts and culture scene, but be can put a finger on the tax revenue generated, the number of jobs, and the other businesses supported by the industry. last year we heard a lot of candidates talking about jobs, jobs, and more jobs. now we can see that a significant portion of the jobs in san francisco, 40,000, or job that we call the other 9:00 to 5:00. that number could be higher, if the government eased on regulations.

it is a bit a big number. as was mentioned, the study did not include the biggest event in san francisco, the outdoor festivals and street fairs. in a recent study conducted by san francisco state, they were generated -- estimated to have generated more than $60 million. hundreds of thousands of visitors come to san francisco for gay pride, to the jazz festival, for the chinese new year. they are paying our taxes, taking airbuses, spending our money -- spending their money in our businesses. i have been an advocate for night life and culture for many years, and such advocacy recently -- such advocacy revolves around a crisis. usually when we advocate for night live, we have to rely on anecdotal evidence or platitudes about how important the night life economy is.

that is why the study is so important. it allows for a holistic approach. you now have a far more complete picture of the benefits of night live in san francisco. it cannot be understated. it is important to us. we know that helping the entertainment scene thrive is important. it makes san francisco a more attractive place to live in me know that it is essential to the san francisco and economic future -- live and now we know that it is essential to the san francisco economic future. >> mr. president, supervisors, especially supervisor wiener, thank you. i am amazed by this, actually. as some of you know, i have had my first dance hall license for almost 30 years. i have been involved with nightlife entertainment for those 30 years.

many of you know, especially jocelyn, since many of you heard me at the entertainment commission, i am very frustrated. stupidity drives me crazy. in this way, the harm has been done to the san francisco nightlife over the past 15 years is just stupid, when you think about it. we have to recognize that. let's go back to the 1980's. the gavin report, thousands of music professionals -- independent music people came to town every year. at the same time, a little group called south by southwest grew up in austin and it has turned into a billions and billions of dollars worth generator for revenue in the city of austin. portland has become a major might like tourist destination, because of their nightlife scene. i pick it up in the in-flight

magazines, they are always talking about portland. when i came to town, we were the no. 1 entertainment venue for tourism. what has happened, we have been 20 years worth of neglect and outright hostility by city and county officials, by department. is this still going on? yes, i am fighting a battle at 4360 at the moment, because they do not want to put a liquor license in their. this has been described as a place where people simply deal crack. these are responsible professionals that have a bar. police ask me -- why should be put another liquor license on sixth street? they do not get the fact that the two security guards on the corner, going down to the corner for the last three months, it has transformed because there are two big guys on the corner,

stopping all of the bs. look at what happened is we've neglected this. vegas, $100 million. $200 million for three nightclubs in vegas, which is a smaller town. there is cost to it, lab kids, but a big benefit. captioned by the national captioning institute --www.ncicap.org-- -- supervisor wiener: thank you for your comments. i know that you do a lot of work with staffing issues, and i know that there has been a backlog. has there been any improvement in terms of abc processing? >> it changed overnight. i have pretty good connections, and i could not get an appointment in four months for a transfer allocation. as soon as it hit, it went down

to one week. i told someone today that they were buying in the rent water hotel and i told them that this morning. it is true. supervisor wiener: glad to hear that. thank you. >> thank you. i would like to, as everyone else has, really thank supervisor wiener for his leadership on this issue. you have been an incredible advocate to the nightlife industry. i have been to night clubs in both of your districts. i think that you do do good work, supporting entrepreneurs there. i am currently a dj promoter in that my life. before that i had a nonprofit background and i wanted to speak to the impact that nonprofit has on that sector in the city. it was not included in the report, but as federal, state, in city agencies have been slashing profits -- slashing

budgets for nonprofits, nightlife has been coming in to fill the void with cash. off the top of my head, folsom st. events have contributed over $300,000 each year to the breast cancer emergency fund, the stop aids project -- the list goes on. since the grant program started in 1997, they have contributed over $2 million. they hold a private party every year. this benefits the lgbt center in the district of supervisor wiener. so, in addition to the jobs created by the folks that actually work in these bars, the fund rate that we -- the fund raising that we do really impacts what the oth