By Ryan Kim
Minimum Wage & City Rules: What Local Businesses Need to Know
As of January 1, 2026, the minimum wage in Daly City is $17.50 per hour. This change affects all covered employers—those who have employees working within city limits for two or more hours per week. Hiring notices must clearly display pay rates, and employers are required to keep detailed records of hours and wages for each worker. Violations can lead to back wages and civil penalties. These rules matter especially for labor-intensive small businesses such as restaurants and retail shops. (City Clerk, Minimum Wage Ordinance)
Business License Trends: Slow Growth After Turbulence
Business license revenue helps power many of the city’s services. After growing steadily prior to the pandemic—at around 8% annually—the growth rate came to a halt during the health crisis. The current fiscal year sees only a modest rebound, with a projected 2% increase. For businesses planning expansions or new ventures, navigating fees and licensing timing remains a key consideration. (FY 2024 Adopted Budget Projections)
Industrial Markets: Softening Demand and What It Means
Daly City’s industrial sector—including the Brisbane/Daly City submarket—is seeing rising vacancies and softer leasing activity. Despite this, sale prices for some industrial properties remain substantial—such as a recent sale of a 12,340-square-foot building for about $4.1 million. Landlords may need to adjust pricing or offer flexible lease terms to attract tenants. (Peninsula Industrial Market Report, Q2 2026)
Honoring Deep Roots: Legacy Businesses Keep Local Flavor Alive
In 2023 the city established a Legacy Business Program to identify and support establishments that have been around for at least ten years and reflect the cultural history of their neighborhoods. Favorites like The Bread Basket Bakery, the One Dollar Only Store, and Royal Donut on Skyline made the first cut. Qualifying businesses receive promotional support and recognition, helping them survive amid rising rents and competition. (Daly City Legacy Business Registry)
Cannabis Retail Licenses: Equity Challenges and Competitive Pressures
Daly City’s cannabis sector has seen a growth in the number of retail licenses. While this could boost choice and local revenue, many stakeholders warn of risks—especially for equity applicants. Financial barriers, high compliance costs, and competition from multi-state operators are making it hard for small entrepreneurs to stay afloat. Unlicensed retailers also undercut legal businesses, heightening financial strain. (Cannabis Equity Assessment, 2025)
What Small Business Owners Should Do
- Plan ahead: Factor in rising wage bills and licensing fees when building your budget.
- Understand your lease: The case of the laundromat closed for years due to construction shows how contract terms can make or break a business. (Small Business Commission case)
- Look for support: Daly City and San Mateo County offer programs to help with licensing, permit navigation, and promotions especially for legacy or equity applicants.
- Stay attuned to local markets: Industrial tenants or retail operators might benefit from flexible lease terms or adjusted pricing during this period of softening demand.
Daly City’s business climate is shifting. For entrepreneurs and longtime businesses alike, success increasingly depends on adapting to changing rules, costs and competition—but also leveraging the city’s unique character and support systems to thrive.