San Francisco’s struggling downtown district witnessed the grand opening of a “bespoke AI nutrition” store in September, generating significant excitement with its promise of AI-powered smoothie creations. However, in a surprising turn of events, the establishment, known as BetterBlends, appears to have closed its doors after less than two months of operation, leaving questions unanswered.
BetterBlends made headlines with its slogan, “Your Smoothie, powered by AI,” drawing attention for its innovative use of artificial intelligence to curate customized smoothie recipes. The AI model took customer orders and preferences, generating a unique smoothie recipe, which was then prepared by co-founders Michael Parlato and Clayton Reynolds at the store.
However, as of late, the BetterBlends storefront sits vacant. On October 20, a sign on the locked doors stated “temporarily closed,” indicating a one-hour reopening timeframe. Nevertheless, local sources reported that the storefront remained closed for over three weeks. By the following Monday, the sign had been removed, and the shop’s interior was cleared of blenders, fruits, vegetables, and other supplies, indicating a sudden departure. Only a trashcan and a few plants remained.
The Google Maps listing for BetterBlends paints a mixed picture of the establishment. A review posted two weeks ago criticized the management’s inconsistency and abrupt schedule changes, while other reviews gave BetterBlends positive ratings. The shop’s owners uploaded images to the Google Maps page, including an image of satisfied customers that displayed characteristics of generative AI. Despite some convincing elements, the images featured unrecognizable fruit representations, gibberish text on the cups, and unrealistic human hands – a common issue with AI image generation.
The abrupt closure of BetterBlends adds to the challenges faced by San Francisco, a city grappling with a sluggish economic recovery from the COVID-19 pandemic. BetterBlends operated in one of the hardest-hit areas of the city, previously a vibrant tech hub with slowing foot traffic.
“Many welcomed the idea of investing in San Francisco,” co-founder Reynolds stated in September, emphasizing the positive local response. However, the “be back in an hour” sign had been affixed to the door for an extended period, according to Christian Cecena, an employee at a neighboring coffee shop. A local community outreach worker stationed outside BetterBlends noted that the business’s longest consecutive operation was just two weeks.
BetterBlends was still listed as an active food service establishment in San Francisco as of October 25. The company and its co-founders have not provided any explanations for the abrupt closure, despite repeated requests for comment.
The closure of BetterBlends coincides with San Francisco’s historic high office vacancy rate and the highest retail vacancy rate since 2006. While the city has made efforts to revitalize empty storefronts and sidewalks through grants and tax breaks, BetterBlends’ presence in the area temporarily raised optimism about the city’s prospects amid the growing AI industry.
Economist Stijn Van Nieuwerburgh, known for warning about San Francisco’s potential economic struggles, noted that the AI sector’s growth had not yet fully addressed the city’s office vacancy concerns.
“The AI sector is booming and leasing some office space, which is great,” he said. “However, San Francisco still has a long way to go to reach healthy office vacancy levels.”
The future of BetterBlends remains uncertain, with little information available about its intended duration of operation. The co-founders previously sought $1 million in funding to integrate BetterBlends’ technology into apps and other businesses. On the shop’s website, the only contact information found was an email address listed under “How to invest,” directed at customers interested in contributing to the next generation of dining.
While BetterBlends aimed to make its mark with AI-powered smoothies, it remains to be seen whether the establishment ever intended to operate for an extended period. Reports suggest that the quality of the smoothies may have played a role in its rapid decline.
As the unexpected closure leaves unanswered questions, more than a dozen people continued to visit the neighboring coffee shop, where competitively priced smoothies are available at $7.50 each. Despite the uncertainty surrounding BetterBlends, local residents and businesses still hope for more successful ventures in the area.
