# Running a Baklava Business in San Francisco: An Entrepreneur's Struggle The story of a baklava shop in the shadow of the AI boom. - **Source:** [Business Insider](https://www.businessinsider.com) - **Published:** 2026-09-04 - **Topic:** [Entrepreneurship](https://brifing.si/c/entrepreneurship) - **Original article:** - **On Brifing:** https://brifing.si/s/a81944f4-5e86-4c2a-bf60-bee202872002 ## The Birth of BaklavaStory Tolgay Karabulut immigrated from Turkey to the US in 2005 and tried various ventures. In 2022, he decided to pursue his passion by introducing baklava to San Francisco. With a $300,000 initial investment, he founded BaklavaStory. Despite predictions that locals would find it too sweet, he adjusted the recipe and found success. ## Daily Routine and Production Karabulut wakes up at 5:40 AM six days a week. In his 100 sq ft kitchen, he prepares phyllo dough with just one staff member. Using premium pistachios imported from Turkey, the first batch goes into the oven by 8:30 AM. New trays are baked every 20 minutes to ensure freshness throughout the day. ## Challenging Financial Conditions Karabulut earns about $40,000 annually. He shares a rent-controlled apartment in Nob Hill, paying $1,300 monthly. The AI boom has caused rents to skyrocket, making business difficult. High salaries in AI companies are creating economic disparity for traditional businesses. ## Labor Costs With a seven-person team, everything is handmade. Labor costs in California are exceptionally high. Karabulut cooks homemade meals daily for his staff. Bulk purchases from Costco help keep food costs low - frozen pizzas feed the whole team for just $20. ## Customer Satisfaction Customer reactions make all the struggles worthwhile for Karabulut. He teaches his unique 'upside-down' baklava eating technique. Regular customers bring friends, and their positive feedback motivates him to continue despite the challenges. ## San Francisco's Changing Face The AI boom has transformed the city's demographics and economy. Tech workers' high salaries have disrupted the real estate market. Traditional businesses face increasing difficulties. Rising rents threaten small enterprises across the city. ## Entrepreneurial Spirit Karabulut has always been an entrepreneur - from importing toys from China to leasing office spaces during Silicon Valley's growth in the 2010s. But his true passion was food, leading him to start his baklava business despite the challenges. ## Future Dreams Currently unable to afford his own apartment, Karabulut prioritizes business growth. He dreams of expanding to a larger kitchen to increase production. Long-term, he wants his own place. Customer satisfaction keeps him motivated to persevere through hardships. ## Sources covering this story - https://www.businessinsider.com/san-francisco-baklava-bakery-owner-hustle-culture-ai-boom-2026-9 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._