San Francisco is about to get Amsterdam-style cannabis cafés.
The city’s Board of Supervisors gave its final approval to the legislation, paving the way for a new permit for businesses that combine cannabis consumption with food, beverages, and entertainment.
The ordinance, which was approved in a 7-4 vote during a session on July 14, will now head to Mayor Daniel Lurie for consideration.
If signed into law, the measure would create a new cannabis café permit that would be administered by San Francisco’s Office of Cannabis.
This will enable eligible businesses to sell cannabis and cannabis products for on-site consumption, while also offering food, nonalcoholic beverages, and live entertainment under certain conditions.
The ordinance creates a new category of licensed cannabis cafés, which builds on the city’s existing cannabis consumption lounges.
The measure exempts cannabis cafés from the city’s prohibition on smoking inside business establishments and removes the rule that prevents businesses from requiring staff to smoke within a designated area while at work.
Additionally, some cannabis cafés will also be exempt from the 600-foot buffer mandate, which usually applies to cannabis retail businesses, giving more flexibility in where these cafés may operate.
Opportunity for Existing Cannabis Businesses
The measure will allow existing cannabis retailers to expand their businesses, instead of creating opportunities for regular restaurants, bars, and cafés to start selling cannabis.
In the first year after the law is implemented, only those businesses that already have a cannabis storefront retailer permit or businesses under the same ownership will be eligible for the new permits.
The cannabis cafés will be required to meet the health and food codes as all other food establishments and follow ventilation and signage rules, according to a CBS News report.
Cafés will also have to verify customers’ ages prior to their entry, the report said.
The ordinance also establishes fees for equity applicants seeking a permit, including a $2,000 application fee, permit amendment processing cost, and a $3,000 first-year license fee.
San Francisco is reportedly the first city in the Bay Area to allow such cafés.
Ordinance Builds on AB 1775
The measure brings San Francisco into compliance with AB 1775, which took effect on January 1, 2025.
The measure permits cities and counties to allow for retail preparation, sale, and consumption of non-cannabis food and beverages, while allowing for smoking, vaping, and ingesting of cannabis or cannabis-infused products inside a licensed retailer or licensed microbusiness.
The bill removed the earlier state-imposed ban on the preparation and sale of any non-cannabis food or drinks on-site in licensed cannabis dispensaries where consumption is allowed.