Small Businesses Step Up to Support Pride Festivals Amid Declining Corporate Sponsorship

Last month, Ryan Jones, a bakery owner in San Francisco, made an unexpected call to other local merchants for support.

San Francisco Pride was facing financial difficulties and urgently needed assistance.

Although his bakery, Hot Cookie, had never previously contributed to the annual festival celebrating LGBTQ+ life, Jones was motivated to act after learning that major sponsors such as Comcast and Anheuser-Busch would not be renewing their support, creating a funding shortfall exceeding $1 million.

Jones explained, "I asked myself how I could contribute to supporting the event," which is scheduled for June 28-29. In response, he and his business partner committed to donating 5 percent of sales from the bakery’s most popular cookies to this year’s festival and encouraged other local businesses to make similar contributions.

Across the United States, Pride celebrations are encountering financial challenges as many large corporations pull back from diversity initiatives. In reaction, community-based small businesses are stepping in to help fill the funding gaps. Many view their involvement as both a show of solidarity with LGBTQ+ individuals and recognition of the festival’s significant impact on local economies.

San Francisco Pride is a major event generating millions in revenue, attracting hundreds of thousands of attendees, numerous musical acts, and a wide array of food vendors. It has become a vital economic driver, with a 2015 study estimating its impact at $350 million. Local businesses, including hotels, restaurants, bars, and retailers, are increasingly concerned about the consequences if the event must be downsized.

Hot Cookie, known for its provocatively themed "sex positive" cookies, experienced a 30 percent sales boost during last year’s Pride festival. Jones hopes that support from local enterprises like his will ensure the festival remains vibrant, healthy, and sustainable.