City Attorney seeks to shut down Tenderloin corner store selling meth

San Francisco, CA (May 7, 2026) — City Attorney David Chiu filed a lawsuit yesterday against the owners and operators of Corner Store, a Tenderloin convenience store that sold controlled substances and enabled criminal activity in the neighborhood. The business sold controlled substances and illegal tobacco products, among other unlawful activities, violating various state and local laws as well as California’s Unfair Competition Law.

“The Corner Store didn’t just promote drug activity – it became the drug dealer,” said City Attorney Chiu. “Families and minors rely on convenience stores, and we will not tolerate a store that that sells drugs. We are asking the Court to protect the community, shut this store down immediately, and level the playing field for law-abiding small businesses. Thanks to SFPD and DPH for their vigilance and commitment to resident safety.”

“Selling illegal narcotics in San Francisco unacceptable,” said Police Chief Derrick Lew. “The SFPD will continue to work with our partners including the City Attorney to hold offenders accountable and to keep our neighborhoods safe. Our officers will continue to be relentlessly enforcing the law, making arrests for drug-related activity, and doing what we can to continue the progress we've made.”

“For too long, a small number of bad actors have exploited the Tenderloin’s most vulnerable residents while evading real consequences. When a corner store turns into a hub for drug activity, it undermines the safety and dignity of the entire neighborhood. I’m grateful to City Attorney David Chiu and his team for continuing to take this issue seriously and using every tool available to protect our neighborhoods,” said Supervisor Bilal Mahmood. “This enforcement action is a critical step toward shutting down the networks that fuel the drug trade and restoring our streets for the families, seniors, and small businesses who call this community home.”

Background
The owners of Corner Store have leased the commercial space at 401 Eddy Street since February 2023. Between March 2023 and November 2025, the San Francisco Police Department (SFPD) responded to twelve separate incidents of theft, vandalism, physical altercations, and arrests in and around the Corner Store.

The City also received community complaints about the store illegally selling tobacco products without the appropriate Department of Public Health (DPH) retail tobacco permit. In April 2024, DPH conducted an undercover operation and purchased an illegal flavored tobacco vape that did not have the required U.S. Food and Drug Administration (FDA) pre-market approval. DPH issued a Notice of Violation for the illegal transaction.

The City continued to receive complaints about the Corner Store. In November 2025, SFPD conducted a coordinated inspection with DPH and the California Department of Tax and Fee Administration. The investigators seized 48.1 grams of methamphetamine, nearly five pounds of cannabis, a ghost gun, illegal tobacco products, digital scales, small plastic baggies used to store narcotics, and glass pipes used to smoke methamphetamine and crack cocaine.

The Defendants have created a public nuisance and contributed to criminal activity in the Tenderloin. San Francisco’s lawsuit alleges the Defendants violated multiple state and local laws, engaged in unlawful and unfair business practices, and profited from operating a business used for illegal activity including selling methamphetamine, cannabis, and illegal tobacco products.

In addition to seeking penalties and injunctive relief to cure the violations at the property, the City is asking the Court to shut down the Corner Store for one year.

One of the Corner Store owners also owns the Tenderloin convenience store SF Discount Market. In October 2024, the City Attorney filed a lawsuit against SF Discount Market for illegal gambling, hosting a fencing operation, and fueling drug activity. The Court ordered the store to close while the lawsuit is ongoing.

Today’s lawsuit builds on the City Attorney’s Office ongoing collaboration with SFPD to enforce the nighttime safety ordinance and shut down problematic corner stores that engage in and fuel criminal activity.

The case against the Corner Store is City and County of San Francisco and the People of the State of California v. Allen Hotel LLC, et al., San Francisco Superior Court. View a copy of the complaint.