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The thing about the global economy is that you can buy anything, anywhere. It makes it really difficult to find interesting, unique souvenirs.
Not so at family owned and operated China Town Kites! Browse their selection of hand painted kites: there are dragons, grasshoppers, goldfish, and turtles.
Personally I think they're too beautiful (and expensive) to risk flying. They make gorgeous decorations for a child's room though.
Even if you're not buying, this shop is an oasis in the bustle of China Town. Go in!
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An enormous indoor mall comprising 3 buildings (connected by a plaza on one side, and a shop-filled over-the-street bridge on the other). This is a great place to spend an afternoon souvenir shopping.
If your kids like Pokemon and Hello Kitty (among MANY other Japanese cartoon characters), you'll have to pry them out of here with a crowbar.
I especially love Ichiban Kan Different Things, a store patterned after Japan's 100 Yen shops. You can pick up kitchen utensils, beauty products, dry goods, stationary, and bento boxes, for unbelievably low prices. I would still be there if my eye-rolling spouse hadn't dragged me out.
There are lots of tempting places to eat too, and not only Japanese. On the Bridge has pasta and hamburgers, Belly Good Cafe and Crepes has cafe fare, and there are plenty of coffee shops too.
Getting here is easy on the bus (lines 2, 3, and 4 drop you off right in front of the mall). If you get stuck with rainy weather while you're in SF, this is the place to go.
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Japan town is a mall, market place and cultural centre of the Japanese community in San Fran. If you're into Manga, Anime, robot model kits and Japanese cuisine, this is an interesting - if expensive - destination.
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Got tweens or teens? This is the place to take them (tweens) or drop them off for an hour (teens).
Pika Pika is a full-service film and digital photo shop, but that's not all. They also have 7 sticker photo booths (a.k.a. purikura) straight from Japan, each with oodles of different backgrounds. Your kids can primp, pose, and print to their hearts' content. A photo sheet usually takes 15-20 minutes to make, and costs between $5 and $9.
Or bring your own digital photos, upload them, and have them turned into rubber stamps too (from $16.95).
Or do both.
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Directly under the Golden Gate Bridge at the end of Crissy Field, the Warming Hut is a great place to load up on coffee and only-in-San-Francisco souvenirs. They've got books, maps, toys, and environmentally-friendly gifts.
The adjacent beaches and lawns are a safe, car-free place for your kids to burn off some energy, and the views of the bridge and the city skyline are gorgeous.
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