San Francisco Approves Cannabis Cafés in 7-4 Vote as Illicit Market Still Controls 60%
Updated
Updated · KQED · Jul 15
San Francisco Approves Cannabis Cafés in 7-4 Vote as Illicit Market Still Controls 60%
3 articles · Updated · KQED · Jul 15
Summary
A 7-4 Board of Supervisors vote cleared San Francisco to allow licensed cannabis cafés serving food and nonalcoholic drinks with on-site consumption, making it the first Bay Area city to adopt the model.
The ordinance implements California’s 2024 AB 1775 and is meant to help legal operators hit by high taxes, falling prices and an illicit market that still accounts for about 60% of cannabis sales statewide.
Cafés must hold both cannabis and public health permits, meet restaurant food-safety rules, verify age electronically and keep all cannabis consumption on premises; alcohol and tobacco are barred.
For the first year, only existing storefront retailers and equity partners can apply; after that, new entrants may seek the separate café license, a compromise after operators warned of further market saturation.
Health groups including the American Lung Association opposed the measure over secondhand smoke risks, and the ordinance now goes to Mayor Daniel Lurie, taking effect 31 days after his signature.
Can San Francisco protect worker health without stifling the new cannabis café industry's growth?
Can SF's cannabis cafés survive competition from the city's massive and cheaper illicit market?
How will Amsterdam-style lounges change the social fabric of San Francisco's neighborhoods?
Cannabis Cafés Come to San Francisco: City Passes Landmark Law to Boost Legal Industry and Neighborhoods
Overview
San Francisco’s Board of Supervisors approved an ordinance on July 15, 2026, allowing licensed cannabis retailers to open cafés where customers can consume cannabis with food and nonalcoholic drinks on-site. The measure, which passed with a 7-4 vote and awaits the mayor’s signature, strictly bans alcohol and tobacco in these venues and requires all cannabis use to stay within the premises. This move is possible because of AB 1775, a 2024 state law that lets local governments issue cannabis café licenses. The new ordinance aims to boost the city’s legal cannabis industry and create safe, regulated spaces for consumption.