REPORT
Neighborhood-Restricted (“Type 87”) Restaurant Liquor Licenses
Office of Economic and Workforce Development
Hospitality Zone Restaurant Liquor Licenses
In 2025, the California Legislature created a new type of affordable, nontransferable full liquor license for restaurants in downtown San Francisco. Ten of these hospitality zone liquor licenses will be made available later this year.
A new or existing restaurant may apply for this program if it is located within the boundaries of the hospitality zone designated by the San Francisco Board of Supervisors earlier this year.
The hospitality zone is comprised of the area highlighted in this map, and includes both sides of the street at the boundaries of the zone:
A location that currently holds a full liquor license (i.e., a Type 47 or 48 license) does not qualify for a hospitality zone liquor license at that location.
Neighborhood-Restricted (“Type 87”) Restaurant Liquor Licenses
In 2016, the California Legislature created a new type of affordable, nontransferable full liquor license for restaurants in seven San Francisco neighborhoods. Five of these "Type 87" liquor licenses will be made available later this year.
A new or existing restaurant may apply for this program if it is located within a qualifying census tract. Qualifying census tracts include:
- Bayview: 232.00, 233.00, 230.03, 234.00, 612.00
- Excelsior: 255.01, 255.02, 256.00, 260.01, 260.02, 260.04, 261.00, 263.01
- Ocean Avenue: 309.00, 310.00, 312.01
- Sunset (Noriega & Judah): 328.02, 329.02, 351.01, 351.02, 352.01
- Sunset (Taraval): 328.01, 329.01, 330.01, 330.02, 353.00, 354.00
- Portola: 257.02, 258.00
- Visitacion Valley: 264.03 (Note: no more licenses are currently available in this census tract)
To look up a location’s census tract, visit the San Francisco Property Information Map and enter the address you want to search. Under the “Property” tab, scroll down to “Census Tracts.”
A location that currently holds a full liquor license (i.e., a Type 47 or 48 license) does not qualify for a neighborhood-restricted license at that location. Additionally, each eligible neighborhood is limited to a maximum of ten (or, in most areas, fewer) "Type 87" licenses at one time.
Information for Prospective Applicants
How do I apply for a hospitality zone liquor license or a neighborhood restricted liquor license?
We anticipate that the Department of Alcoholic Beverage Control (ABC) will announce the availability of ten hospitality zone liquor licenses and five "Type 87" neighborhood restricted restaurant liquor licenses in August.
Several weeks after the announcement, the ABC will open a filing period during which a prospective applicant must submit a short “priority drawing application” and full application fee to the San Francisco ABC office.
If more priority applications are received during the filing period than licenses that are available this year, the ABC will conduct a public drawing. The first ten applicants for hospitality zone licenses or first five applicants for neighborhood restricted liquor licenses selected at random through these drawings will then each have 90 days to submit a formal license application for evaluation by the ABC.
If any of the selected applicants are unable to submit a full application, or if any of their applications are denied, the ABC will then invite the next applicant identified in the drawing to submit an application.
What are the restrictions upon this license?
Once issued, a hospitality zone license or neighborhood-restricted license may not be sold or transferred to any other business or moved to any location outside the hospitality zone or qualifying neighborhood.
After a restaurant with either type of license closes, the ABC is authorized to issue a new license to a new business through the annual application process the following year.
How much does this license cost?
The ABC application fee for a hospitality zone liquor license or neighborhood restricted liquor license is $19,840. An applicant who is unsuccessful in receiving a license through this process will be refunded their full application fee minus a small service charge. If an applicant owes money to a California taxing agency, the amount owed may be deducted from the fee at the time of the refund.
Tips for potential applicants
While an existing location or a signed lease for a new business is not required to submit a short "priority drawing application" and participate in the public drawing, a successful applicant will be required to provide evidence of a signed lease with their formal license application within 90 days of being invited to apply.
If you have not secured a location before the public drawing, and you are invited to submit a full application, it may be extremely challenging to lease a space in 90 days. If you do not already have a location, consider doing as much work as possible to identify potential locations before the drawing takes place so that you are well positioned if you are selected in the drawing.
For more information
For more information about starting a restaurant in San Francisco, including permitting guides, commercial leasing assistance, and free business counseling, visit the Office of Small Business.
For information about how to apply for a liquor license and general licensing requirements, please contact the ABC’s San Francisco district office at (415) 356-6500 or SanFrancisco@abc.ca.gov or visit their website: abc.ca.gov