REPORT

Neighborhood-Restricted (“Type 87”) Restaurant Liquor Licenses

Successful restaurants help to activate neighborhoods by reducing storefront vacancies, boosting foot traffic, adding to the variety of neighborhood-serving small businesses, creating good jobs for residents, and providing important spaces to meet and socialize. 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.

Who may apply for a neighborhood-restricted liquor license?

A new or existing restaurant may apply for this program if it is located within a qualifiying census tract

Qualifiying 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): 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
SF Neighborhood Restricted License Map

Click the link here to see details of the map

To look up a location’s census tract, visit the SanFrancisco Property Information Map at propertymap.sfplanning.org 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. Additionally, each eligible neighborhood is limited to a maximum of ten (or, in most areas, fewer) "Type 87" licenses.

How do I apply for this license?

We anticipate that the Department of Alcoholic Beverage Control (ABC) will announce the availability of 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 than five priority applications are received during the filing period, the ABC will conduct a public drawing. The first five applicants selected at random through this drawing will then each have 90 days to submit a formal license application for evaluation by the ABC.

If any of the first five 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 neighborhood-restricted license may not be sold or transferred to any other business or moved to any location outside the neighborhood.

After a restaurant with this type of license closes, the ABC is authorized to issue a new neighborhood-restricted license to a new business that qualifies under the program’s requirements.

How much does this license cost?

The ABC application fee for a neighborhood restricted liquor license is $19,315. 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 at sfosb.org

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