San Francisco Mayor Daniel Lurie has signed legislation that allows the city’s licensed cannabis retailers to serve food and nonalcoholic beverages inside their consumption lounges.
Board of Supervisors President Rafael Mandelman introduced the ordinance in March after more than a year of collaboration between his office, state Assemblymember Matt Haney, D-San Francisco, and city agencies including the Office of Cannabis and the Planning Department, according to Mandelman’s office.
The ordinance creates a permit that cannabis retailers can pair with their existing licenses to prepare and serve food and drinks for on-site consumption alongside cannabis. Alcohol and tobacco remain barred from the premises.
Cafe operators must hold a consumption permit from the city’s Department of Public Health, meet the same health and food code standards as other food establishments, and verify each customer’s age electronically at the door. For the first year, only existing retailers and their equity partners can apply for the new permits.
“Cannabis cafes are part of this city’s recovery, right alongside our entertainment zones, neighborhood activation, and free concerts.”
Supervisor Rafael Mandelman
San Francisco has issued 79 cannabis retailer permits, of which 66 were active earlier this year. State regulators estimate roughly 60% of cannabis sold in California still moves through the unlicensed market, a gap city officials cited in pushing to give legal operators new ways to compete.
“This legislation clears a path for our industry to create a full-service cannabis hospitality experience, diversify our businesses, and provide our customers with safe, highly regulated spaces,” William Dolan, CEO of the HYRBA dispensary in San Francisco’s Sunset District, said in a statement.
The ordinance was authored by the board president Mandelman and implements a 2024 state law from Haney that authorized cities to allow Amsterdam-style cannabis cafes. The ordinance passed its first reading July 7 before the Board of Supervisors granted final approval, sending it to Lurie’s desk. San Francisco is the first city in the Bay Area to adopt the model, according to Mandelman’s office.
“Cannabis cafes are part of this city’s recovery, right alongside our entertainment zones, neighborhood activation, and free concerts,” Mandelman said.
The Small Business Commission voted 5-1 in April to support the legislation, and the Planning Commission followed with unanimous supporting findings the next month, before the full board passed the measure this month.