Sad news to hear. A&I in Los Angeles does do good prints and E6 with decent turn around.
Side comment -
While everyone is quick to point out the obvious decline in chemical based photography labs, there are some other issues that can cause such businesses to "reinvent".
Real estate prices for commercial property are pretty high these days. Labs are often smaller than what the SBA calls a "small business" - they are often micro-businesses. Where the larger employers get tax relief, occupation and building fee waivers, and in some cases, financial assistance to operate, small businesses are frequently saddled with ever-increasing taxes, insurance rates and environmental regulations that have variable fees (such as, in some parts of Oregon, the number of trips on a road that leads to a photo lab).
I have been researching the possibilities of opening a photo business that involves processing in various counties of Oregon. The number of issues to deal with is daunting and well, expensive. It might not even be possible unless I could open the equivalent of a Kodak corporate office. Oregon is strapped for cash in general, so it must try to squeeze every drop out of small business. The digital stuff has higher markup in many cases for the vendor with fewer variables (spoiled prints, etc.) when done right. Environmentally, while there are trash and equipment disposal issues, at least there isn't any wastewater discharge, and the amount of space required for the operation can be pretty small. Add to it that people have Wal Mart kiosks as well as their own printers at home and it's easy to see how one could have a difficult time surviving.
How I wish I could offer some of those nice, honest, regular Oregon folks a job in a high-end photo lab. It just doesn't pencil out so far for darkroom stuff - even a rental darkroom doesn't pencil out. But a "yet another inkjet and teeshirt shop with Internet sales" does pencil out just fine. Go figure.
So sure - film processing options are going down due to film use decline, however small business troubles usually are quite related.
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