The SF permit process allowed nearby businesses to object for whatever reason, creating an almost 1 year waiting period for the trial. The city also drags its feet in issuing permits. All that time a tenant has to pay rent, business or no business, so these anti-competitive rules and waiting periods really are bad for starting small businesses.
With SF rent prices, 2 year is about $180,000.....and that's before you even purchased equipment and furniture.
I think it changed now that Prop-H passed, but he was already broke and tired by then.