Promoting Nightlife and Revitalizing Downtown: San Francisco Mayor Signs State Proposal

Over the past weekend, San Francisco successfully hosted the NBA All-Star Game and Chinese New Year celebrations, attracting hundreds of thousands of visitors and locals and generating billions of dollars in economic income.

To further revitalize the downtown area, on February 18, 2025, California Senator Scott Wiener and San Francisco Mayor Daniel Lurie jointly introduced Bill SB 395, aiming to lower the barriers for obtaining liquor licenses and promote the development of the nightlife industry.

The nightlife industry, including bars, restaurants, and entertainment venues, is crucial for boosting the vibrancy of the downtown area and attracting foot traffic. However, current California laws impose strict limits on the number of liquor licenses, making it difficult for new entrepreneurs to start businesses.

Bill SB 395 aims to add 20 new liquor licenses for a specific hotel district in downtown, providing more opportunities for entrepreneurs and stimulating economic growth.

Current state laws restrict the number of liquor licenses for restaurants and bars, with only one license allowed per 2,000 residents in each county. As of 2024, half of California’s 58 counties have reached the limit. San Francisco has been at its limit since the 1940s.

Once a county reaches its quota, new restaurants and bars must purchase licenses from the secondary market. The prices for these secondary market licenses can go up to $200,000 each or even higher, creating a significant burden for new entrepreneurs.

In 2016, the state government passed Bill SB 1285, introducing a new type of license known as the “Type 87 Community Specific License,” which successfully helped the development of peripheral areas of San Francisco. However, due to regulatory restrictions, the downtown area has been unable to benefit from this policy.

The newly introduced Bill SB 395, drafted by Senator Scott Wiener and co-signed by Mayor Daniel Lurie, will authorize the Department of Alcoholic Beverage Control (ABC) to issue 20 new licenses in designated retail areas (over one million square feet), effectively reducing the barriers to entry for the nightlife industry.

Senator Scott Wiener added, “Over the past year, various street markets, special events, and emerging small businesses have injected vitality into the downtown area. Supporting the nightlife industry, including bars and restaurants, is crucial for the continued economic recovery of the city.” Creating more affordable liquor licenses will attract new businesses, drive tourism and consumption, and further transform the downtown area into a “24-hour city.”

Mayor Daniel Lurie stated, “In order for San Francisco’s economy to bounce back, the downtown area must maintain strong development. Based on the success of last weekend, we are introducing sustainable solutions for this community. This legislation will attract more restaurants and bars, bringing in new foot traffic and vitality.” The bill sends a clear message to the world that San Francisco is open for business investments.

Ben Bleiman, founder of the SF Bar Owner Alliance and a well-known local bar owner, stated, “Union Square is the heart of downtown,” and this legislation will “attract more nightlife industry to the retail area,” creating a more attractive downtown.

Jill Linwood, Director of External Affairs at the Yerba Buena Partnership, believes that San Francisco is full of business opportunities, with the downtown area serving as a base for international arts, culture, and various exhibitions. This proposal will attract more businesses and visitors, further strengthening San Francisco’s position as an international hub for arts, culture, and entertainment, driving its recovery.