A family-owned pharmacy that has been the cornerstone of a San Francisco community for more than 100 years is closing up shop on Tuesday.
Jerry Tonelli, the owner of Central Drug Store in the Excelsior District, posted on Facebook last month that he was retiring after happily serving as the neighborhood pharmacist for 50 years. The shop’s last day after its historic run was planned for July 15, according to the post.
The Tonelli family has been serving the community since taking over the business in 1965. However, the establishment’s roots in the area run much deeper, dating back to the early 1900s.
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“We are a small, but mighty, pharmacy. And we are proud to say that we have outlasted Walgreens, CVS, Rite Aid and mail order services. I am pleased to say this is my choice and I am leaving on my own terms,” Tonelli said in the notice posted on the store’s Facebook page. “It is time for all of us to start a new phase in our lives and spend more time with our families.”
The family continued saying that the drug store wouldn’t exist if not for its customers, who had stood by the family after they took over the business.
The announcement was met with an outpouring of support from customers who expressed how important the business had been to the community.
“I can’t tell you how many lives you have impacted,” one customer commented.
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Another said: “I can’t put into words what a blessing Central Drug, Jerry and the Tonelli family have been to me and my family for over 50 years.”
One customer posted: “I was so sad to hear that you were leaving after all these years of your hard work and dedication to all your customers, there will not be another pharmacist or drugstore like yours.”
For the Tonelli family, the pharmacy was more than just a business. His parents met at the store, Tonelli told CBS.
Tonelli took over the business in his 30s after his father died. However, his mom worked in the shop up until she was 96 years old, according to the outlet.
Independent pharmacists have been grappling with a myriad of financial and operational pressures, which many blame on pharmacy benefit managers. PBMs act as intermediaries between insurers, drug manufacturers and pharmacies, negotiating drug prices and reimbursement rates. PBMS are often tied to larger retail chains.
PBMs contend that they negotiate drug prices to lower costs for consumers and include independent pharmacies in their networks, sometimes reimbursing them at higher rates than retail chains. But independent pharmacists have previously told FOX Business that it’s threatening their business models, as they reduce reimbursement rates for medications, making it difficult to cover operational costs.
Tonelli made it clear his shop withstood the pressures of the pharmacy behemoths and that he was retiring on his “own terms.” But while Tonelli’s business was able to survive the tumultuous environment in the industry, he is still worried that other independent pharmacies will continue to get forced out by corporations.
“The city started letting Walgreens come into the city, and what happened then was they usually opened up next to the independent, and eventually the independent had to close,” Tonelli told CBS.
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