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Developing Neighborhood Restaurants

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San Francisco

Flickr photos by Eric Hwang and Thomas Hawk

Bill introduced in the California Legislature in 2016 by Senator Mark Leno

Five special licenses would be available for existing and new restaurants in these neighborhoods

Bill would create a new special type of non-transferable liquor license

Licenses available from the CA Dept. of Alcoholic Beverage Control for an application fee of around $14,000

Exclusively for restaurants in 7 target neighborhood commercial corridors in San Francisco (map above)

Licenses issued under this program could not be sold or transferred.*

X

SB 1285 Quick Facts

*When a restaurant with a neighborhood-restricted license closes, that license would return to the pool of licenses available for restaurants in that neighborhood.

High License Costs Create Challenges

One barrier to neighborhood restaurant success is the prohibitively high cost of a full liquor license that allows a restaurant to serve spirits in addition to beer and wine. These licenses are currently being sold for around $300,000 on the private market, and prices will likely continue to increase as the City keeps growing.

These prices make full liquor licenses inaccessible for small business owners in many San Francisco neighborhoods, even though these commercial corridors would significantly benefit from successful restaurants.

A Win for Neighborhoods and Businesses

SB 1285 would create a new type of affordable, non-transferable liquor license for existing and new restaurants in seven San Francisco neighborhoods.

Any business seeking to apply for a neighborhood-restricted license would be required to conduct neighborhood outreach, including an on-site community meeting to discuss and receive feedback about the business, before submitting an application.

SB 1285 will increase the likelihood of success for existing neighborhood restaurants and create a tool to encourage entrepreneurs to launch new restaurants in currently vacant storefronts.

For more information about SB 1285, please contact Ben Van Houten, Business Development Manager at the Office of Economic and Workforce Development, at ben.vanhouten@sfgov.org or 415-554-7038.

Restaurants Help Neighborhoods Succeed

Successful restaurants help to activate neighborhoods by reducing storefront vacancies, boosting foot traffic, adding to the variety of neighborhood-serving small businesses, creating good jobs for residents, and providing important spaces for neighbors to meet and socialize.

Despite San Francisco’s strong economy, it can be challenging for neighborhoods to support existing restaurants and attract new restaurants to vacant storefronts.