San Francisco Considers Ordinance for Cannabis Cafes

SAN FRANCISCO – Customers at licensed Cannabis retailers here could soon relax in dedicated Amsterdam-style cafes, consuming products on site while ordering prepared food and nonalcoholic drinks, following legislation introduced this week by Board of Supervisors President and District 8 representative Rafael Mandelman.

The ordinance, developed in partnership with Assemblymember Matt Haney, would amend the city’s health code, police code, business and tax code, and planning code. It would also permit retailers to prepare and serve food and beverages at lounges, allow lounge areas to take up more than one-third of a location’s space, and open the door for new cafes built solely around on-site sales and consumption.

The proposal builds on state law AB 1775, authored by Haney and effective since last year, which gave local governments authority to set rules for these operations. San Francisco has supported legal Cannabis for years but has not yet authorized cafes, leaving existing lounges without the ability to offer refreshments alongside consumption.

Mandelman called the current limits impractical. “This is common sense legislation to allow Cannabis businesses to sell food and non-alcoholic beverages for on-site consumption,” he said at a Monday press conference. “We’re giving them a little bit of a head start in terms of applying for these permits.”

Haney highlighted ongoing industry challenges. He noted that while legal sales have reached substantial totals since 2020, they still represent less than two-thirds of the overall market, underscoring the need for innovation to compete with the illicit sector.

The measure requires clear signage for consumption zones, staff training on ventilation and secondhand smoke, and rules prohibiting loitering or alcohol service. A phased rollout would first prioritize existing retailers. San Diego, West Hollywood and Sacramento already host similar venues; approval here would align San Francisco with those models while adding safeguards for safety and zoning compliance.

This ordinance represents a targeted fix for rules that have long constrained legal operators. If the Board of Supervisors passes it, the city stands to gain through added jobs, tax revenue and stronger competition against unregulated sales, all while local regulators retain full control over implementation and neighborhood standards. The upcoming committee review and vote will show how swiftly San Francisco translates state authority into practical local policy.

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