AB 1775<\/a>, a 2024 state law that allows cities to issue licenses to cannabis caf\u00e9s. Supporters framed it as a lifeline for a legal industry squeezed by high taxes, falling prices and a stubborn illicit market that, by the state\u2019s estimate, still accounts for roughly 60% of cannabis sold in California.<\/p>\nUnder the ordinance, caf\u00e9s may sell cannabis only for consumption on the premises \u2014 nothing may leave the building \u2014 and no alcohol or tobacco is allowed. Operators must carry a Department of Public Health consumption permit alongside their Office of Cannabis permit, meet the same food safety standards as any restaurant, and verify every customer\u2019s age electronically at the door.<\/p>\n
The ordinance, authored by Board President Rafael Mandelman, was approved in a 7-4 vote, with Supervisors Connie Chan, Chyanne Chen, Jackie Wong and Myrna Melgar opposing it.<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/07\/marijuana070811_qed.jpg\")
A bowl of medicinal marijuana is displayed in a booth at The International Cannabis and Hemp Expo on April 18, 2010, at the Cow Palace in Daly City, California. (Photo by Justin Sullivan\/Getty Images)<\/p>\n
\u201cSan Francisco just gave our legal cannabis industry a real tool to compete and grow,\u201d Mandelman said in a statement, situating the caf\u00e9s alongside entertainment zones and free concerts as part of the city\u2019s economic recovery. \u201cThere\u2019s no reason our operators shouldn\u2019t have the same tools to compete and help bring people back into our neighborhoods.\u201d<\/p>\n
The legislation establishes the cannabis caf\u00e9 within its own permit category, separate from a standard cannabis retailer \u2014 the code is amended explicitly so that a \u201ccannabis retailer\u201d no longer includes a caf\u00e9.\u00a0<\/p>\n
This distinction ensures that a caf\u00e9 will not sell anything to go, and, as a brand-new license, eventually creates a new entrance into the market rather than simply expanding what current shops can do. For the first year, only existing storefront retailers and their equity partners can apply. After that, new operators may apply.<\/p>\n
The city has issued 79 cannabis retailer permits, 66 of which were active as of earlier this year.<\/p>\n
Will Dolan, CEO of the Sunset District\u2019s HYRBA Dispensary, said the change lets the industry \u201ccreate a full-service cannabis hospitality experience\u201d and \u201cprovide our customers with safe, highly regulated spaces.\u201d\u00a0<\/p>\n
David Goldman, president of the Brownie Mary club\u2019s San Francisco chapter, wrote that he supported allowing current retailers to add food and entertainment, but opposed creating a wholly new license type in an oversaturated market. He noted in his letter that 23 cannabis retail storefronts and 21 delivery services have already closed since the city allowed those permits.<\/p>\n
He asked the board to wait for the city to release an economic impact report on the industry, due by mid-2027, before letting new operators in. The one-year head start was the ordinance\u2019s answer to those concerns.<\/p>\n
The measure is now headed to Mayor Daniel Lurie\u2019s desk for his signature.\u00a0<\/p>\n
If Lurie signs it, the ordinance takes effect 31 days later, at which point the Office of Cannabis will begin accepting caf\u00e9 applications.<\/p>\n","protected":false},"excerpt":{"rendered":"The ordinance lets licensed retailers serve food and drinks alongside on-site cannabis use. Jul 15, 2026 Updated 3:22…\n","protected":false},"author":2,"featured_media":399916,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[101,103,102,104,106,105],"class_list":["post-399915","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-francisco","tag-san-francisco","tag-san-francisco-headlines","tag-san-francisco-news","tag-sf","tag-sf-headlines","tag-sf-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/399915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=399915"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/399915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/399916"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=399915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=399915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=399915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/07\/11180203-thumb.jpg\")
<\/p>\n