Frequently Asked Questions (FAQs) about Cannabis Cafes

A permitted, valid Storefront Retailer "Original Co., LLC" can apply for a Cannabis Café permit either through "Original Co., LLC" itself or through any other entity that shares, at a minimum, the same Owners, "New Co., LLC."

Any of the following:

• A Person with an aggregate ownership interest of 20% or more in the Person applying for a Cannabis Business Permit or a Permittee, unless the interest is solely a security, lien, or encumbrance;
• The chief executive officer of a nonprofit or other entity;
• A member of the board of directors of a nonprofit; or
• A Person who will be participating in the direction, control, or management of the Person applying for a permit.

A Valid Storefront Cannabis Retailer permit includes, but is not limited to:

• Permit fee is current and paid;
• Renewal process is complete (if applicable);
• Business holds the correct, active state license(s);
• Business does not have any outstanding OOC NOVs, fees, and fines.
• Business is not closed under 1608(b) of Article 16

If you’re eligible per Section 1606(f) of Article 16 and/or have received a Letter of Interest notification from the Office of Cannabis, please note that you have a year from the effective date of Ordinance 260281 to submit your application per 1606(f).

The application process is not required to be completed within the year.

No! If you qualify this year, you can wait to apply later, but it is worth noting that the current eligibility criteria are limited to a one-year window before expiring.

The approvals and permits you may need from other City Departments will ultimately depend on the specifics of your business. We encourage you to reach out to other City Departments to better understand them. The table below is not an exhaustive list but provides a general overview of the types of permits and approvals you may need to acquire.

• Office of Cannabis (OOC) - Cannabis Cafe Permit
• Planning Department (PLN) - Use authorization, zoning
• Department of Building Inspections - Building permits may be routed to DPH for HVAC
• San Francisco Fire Department (SFFD) - Assembly permits
• Department of Public Health (DPH) - Consumption permit, after OOC Part 2 application
• Entertainment Commission (ENT) - Limited-live performance permits

You will need a Type 10 Storefront Retailer. There is currently no Cannabis Cafe-specific state license

Only one Cannabis Cafe permit application can be submitted per a valid Storefront Cannabis Retailer permit. An applicant can submit up to four cannabis cafe permit applications.

So, an applicant can be a part of up to four separate cannabis cafe applications provided each application is submitted per a valid Storefront Cannabis Retailer permit.

The number of possible applications is tied to the number of storefront retail permits held by the applicant entity.

Example: If "Original Co., LLC" holds multiple retail permits, it’s possible for them to submit one Cannabis Cafe permit applications for each retail permit

Potentially, but it will depend on the facts and circumstances of the business. Please reach out to the Office of Cannabis. At a minimum, the following will have to be observed:

• Must acquire all the permits necessary for a Cannabis Cafe
• Must acknowledge a minimum entry age of 21 (or 18 with a medical marijuana card)
• Must acknowledge the age restrictions, along with all other applicable requirements, for employees who will work at the business following its conversion to a cannabis café.
• Must follow all the protocols of Article 16 of the Police Code

Any changes will have to be subject to approval by the Office of Cannabis. Please contact the OOC.

The Storefront Retail permit (held by "Original Co., LLC") must be valid when the Cannabis Cafe Permit application is submitted. It must also be valid when the Cannabis Cafe Permit is issued.

The Storefront Retail permit may become invalid during the permitting process; however, the Storefront Retail permit must be valid for the Director to issue a Cannabis Cafe permit.

Applicants can apply with either (1) the same entity that holds their Storefront Retail Permit, or (2) a new entity that includes all of the Owners from the pre-existing Storefront Retail Permit. You can find some examples below for each of these two schemes:

Same entity as the associated Storefront Retail permit:

• Example: Andrew and Bella have a Storefront Cannabis Retailer Permit under entity "Original Co., LLC." In this entity, Andrew owns 49% and Bella is a VEA who owns 51%. Andrew and Bella can open a cannabis café under this same entity, in which case the ownership would remain the same.

Different entity as the associated Storefront Retail permit:

• Example: Andrew and Bella have a Storefront Cannabis Retailer Permit under entity "Original Co., LLC." In this entity, Andrew owns 60% and Bella is a VEA who owns 40%. Andrew and Bella can open a cannabis café under a different entity, “New Co., LLC,” with different ownership percentages, so long as Bella does not drop below the original VEA ownership percentage.
  • Permissible: Elijah owns 50% and Bella owns 50%
  • Not permissible: Elijah owns 75% and Bella owns 25%

In general, Article 16 requires certain kinds of changes to be disclosed and/or approved by the OOC before being enacted. Please review Bulletin 2026-03: Permit Amendments.

If the applicant for a Cannabis Cafe Permit is the entity holding a valid Storefront Retail permit ("Original Co., LLC"): Yes! "Original Co., LLC" can add or remove owners or change each owner's share, provided it complies with Article 16. Important note, any changes to "Original Co., LLC" will impact the Storefront Retail business also associated with "Original Co., LLC."

If "New Co., LLC" applies:

• "New Co., LLC" can't drop an owner unless "Original Co., LLC" drops that same owner first
• "New Co., LLC" can add owners who aren't in "Original Co., LLC"
• "New Co., LLC" must have the same core set of Owners as "Original Co., LLC" the entire time the application is pending. Ownership percentages can shift provided they comply with Section 1606(f) of Article 16, but "New Co., LLC" must have all of "Original Co., LLC's" Owners.

An Equity Applicant's stake in "New Co., LLC" can be diluted, but never below the lesser of:

• (a) 20% or;
• (b) that owner's existing percentage stake in "Original Co., LLC"

If the Equity Applicant's percentage in "Original Co., LLC" itself gets diluted, the Equity Applicant’s percentage in "New Co., LLC" can be diluted accordingly. As an example:

• "Original Co., LLC" Owners are each at 33.3%, and "New Co., LLC" shifts to 30/35/35; if the 30% Owner is the Equity Applicant, the reduction would be permissible. The Equity Applicant could also be reduced to 20%, but no lower. If "Original Co., LLC," however, drops the Equity Applicant to 15%, then "New Co., LLC" can do the same

Applicants and/or Owners must contact the OOC immediately.

Yes. Any changes will have to be subject to approval by the Office of Cannabis. Please contact the OOC.

Notable limitations include the following, but please contact the OOC for any specific questions you may have:

• Allow customers to take cannabis products to-go
• Sell tobacco and/or alcohol products
• Let customers stay after closing hours
• Store product anywhere except the permitted premises
• Sell through a drive-up window
• Operate without a valid permit
• Sell more product in a day than the state's adult-use limit
• Delivery of cannabis products to customers,
• Use cannabis as an active ingredient in food and drink preparation (cook with cannabis and/or infuse beverages with cannabis)