Pacifica: california's 'worst' business spot still feels like paradise
WalletHub's latest ranking might sting, but in Pacifica, California, the news is being met with a shrug and a fresh plate of seafood. The coastal town, dubbed the worst small city in the nation to launch a Business, seems remarkably unconcerned, a sentiment reflected in the thriving local eateries and a community fiercely proud of its unique identity.
The numbers don't tell the whole story
The study, comparing 1,334 cities across the U.S. with populations between 25,000 and 100,000, assessed Business environments, access to resources, and Business costs. St. George, Utah, topped the list. But Pacifica’s placement has sparked more amusement than alarm among residents. Robby Bancroft, owner of The Shore Shack, succinctly put it: “There's some truth to it, being cut off. It's probably the worst place for a tech startup, but for a hometown restaurant? Almost the best.”
Bancroft’s experience highlights a crucial point. He and his father opened The Shore Shack just five months ago, a venture he readily admits was a risk. Yet, the restaurant has become a local favorite, and Bancroft himself has been named the 2026 Small Businessperson of the Year for the San Francisco District of the Small Business Administration. “It’s like a dream come true,” he said, standing in the restaurant he and his father envisioned.
A destination, not a launchpad
Archie Judan, president of the Pacifica Chamber of Commerce, offered a different perspective. “Pacifica serves a different clientele,” he explained. “It’s a beach town. It's quiet. It’s where CEOs from Palo Alto go to decompress.” He added that the city’s appeal lies in its escape-from-the-rat-race vibe, not its suitability for building a global brand. “A major brand awareness campaign would need to focus on Pacifica as a visitor destination. We have access to the beach, and that's a draw.”
While the city boasts around 3,000 active businesses, Judan hopes for greater collaboration between the city and local entrepreneurs. He envisions a future where a consistent revenue stream supports the city's economic viability, fueled by strong local support. The City Council is responding with a new economic development workplan aimed at streamlining planning and permitting processes – an effort to ease the burdens on existing businesses and attract new ventures.
Beyond rankings: a community's resilience
City Councilmember Mary Bier dismissed the ranking as “not productive,” emphasizing the daily challenges Pacifica faces. “We are a seaside town, heavily regulated, with issues like sea level rise, fire hazards, and erosion. And a community that hasn’t historically embraced rapid development.” She underscored the strong community spirit: “The heart of my community is amazing. We come together, we support each other.”
Interestingly, Pacifica isn’t alone in its less-than-stellar ranking within the Bay Area. The bottom ten cities on WalletHub's list are all located in the region, suggesting a broader economic trend. Walnut Creek, at No. 891, was the highest-ranked Bay Area city, while Twentynine Palms, in San Bernardino County, topped California at No. 160.
City officials are quick to point out the limitations of the WalletHub methodology, noting its reliance on cost-based metrics and generalized national data. They highlight Pacifica’s location within a larger regional economy, benefiting from proximity to Silicon Valley and San Francisco, a factor the ranking fails to account for. Interim City Manager Yulia Carter and City Economic & Housing Manager Gretchen Heckman released a joint statement emphasizing the city’s commitment to fostering a “healthy, vibrant community” and focusing on creating a place where businesses can “truly belong and succeed.”
Robby Bancroft, ever the optimist, sees the ranking as an opportunity. “I’m hoping some publicity from this rating can encourage others to come check out the charm of this quiet beachy town,” he said, adding that he's looking forward to collaborating with the city to find solutions for housing and economic growth. The ranking may label Pacifica as a challenging place to start a Business, but for those who value community, beauty, and a slower pace of life, it remains a coastal haven.