A recent report detailed the health of businesses in Downtown San Luis Obispo but not everyone agrees on the findings.
Is the sky falling? Depends who you ask.
“No the sky is not falling," Moondoggies Beach Club owner Randy Adler said.
“We are suffering, there is no doubt about that," Basalt owner Cherisse Sweeney stated.
A recent SFGate article claimed downtown San Luis Obispo was “on the brink” after multiple longtime businesses closed down like Avanti and longtime vacancies continue like Charles Shoes. The article has grabbed the attention of local business owners and local residents feeling strongly on both sides of it.
Antigua owner Chris Banys, whose taproom off Monterey St. closed in September, said in addition to an economic downtown and high rent, a combination of parking, city maneuverability and homelessness are what he explains as the main three factors that pushed him to close.
“Just making it easier for people to get downtown and enjoy downtown without the stress of of driving and parking and walking," Banys said of what needs to happen to make it easier for business owners to thrive.
According to Downtown SLO, which says the average vacancy rate in 2025 is 8.29% meaning over 90% of shop windows are filled. Also, while 14 businesses have closed, 21 have opened their doors.
“It hurts to hear when businesses are closing," Downtown SLO CEO LeBren Harris explained. "But what what is equally exciting that we get to we get to celebrate is when we have the new businesses that are coming in.”
“The vacancy rate that we've been noticing this past month or so is within the average vacancy rates that we've been noticing for the past few years," SLO Tourism and Economic Manager Laura Fiedler added.
The city reports an increase of sales tax revenue of 6.1% in June 2025 from a year before.
So what is it like to own a business right now? Mariam Ohanyan's Mareh Couture Bridal store has outgrown its current space downtown and she’s looking to expand into a storefront next door.
“It's only positive and exciting to be in downtown," she said.
But for businesses like Basalt right next door, which has been in business for 15 years, they say it’s a struggle to stay afloat again citing the difficulties with parking and accessibility.
“We need to have that year round traffic in the year around foot traffic and being able to serve our locals and our community as well is a really important part of our business models here,” Owner Cherisse Sweeney stated.
Adler chalks up the struggles of being a business owner to the economy. He’s been in business downtown for 40 years.
“It really depends on what your product offering is and how you manage your business,” Adler explained. He added that good business prevails.
All in all, there are different businesses with different problems or different experiences.
“Today, tomorrow and many years down the future, the locals are the anchor. They are the anchor for our businesses that that are here," Harris concluded.
Some businesses like CJ's Barbecue, Antigua Brewing, Gaia's Gallery and Avanti have closed their doors for good while other longtime vacant storefronts like Ross and the Sports Authority building have been filled after years of inactivity.
