San Francisco Chronicle

Takeout cocktails, parklet drinking may be here to stay.

Alcoholic-related rules adopted amid pandemic may become permanent

- By Esther Mobley

The pandemic has changed many of the ways that restaurant­s and bars operate — in some cases, for the better, according to many owners. Bars have found previously untapped revenue streams by serving takeout drinks. City sidewalks are now dotted with parklets, producing an atmosphere that’s often compared to European street life.

Those effects may soon become permanent if Gov. Gavin Newsom signs two bills that aim to legitimize some of the alcohol-related rules that were instated temporaril­y during the pandemic.

The state Legislatur­e passed both bills, SB314 and SB389, last week, and they’re currently on the governor’s desk awaiting signatures.

After California enacted shelter-in-place measures in March 2020, the state’s Department of Alcoholic Beverage Control issued a series of emergency measures relaxing alcohol rules in an effort to boost business for bars and restaurant­s, which had been ordered to close for in-person service. Among those measures was the temporary authorizat­ion of cocktails to-go.

Sen. Bill Dodd (D-Napa) sponsored SB389 because he wants that authorizat­ion written into law. His goal, he said, is to help restaurant­s and bars generate more income.

“No matter where you live in this state, the restaurant­s have really taken a disproport­ionate hit in terms of their business,” said Dodd. “It’s not going to be something that rebounds overnight. This is

just one more tool in the toolbox for restaurant­s to hopefully increase their sales over time.”

Under the law, all to-go cocktails would need to accompany a food order. Only restaurant­s that serve full meals would be allowed to sell the takeout drinks. Bars that don’t have kitchens would have to keep serving drinks on premise only. The legislatio­n has a five-year limit, meaning it would need to be extended or renewed at that stage.

Dodd’s original bill included a provision for cocktails to be delivered, but that was eliminated during the legislativ­e session. The law would now allow to-go drinks only for customers picking them up in person.

The other piece of legislatio­n, SB314, would allow restaurant­s to continue serving alcohol in outdoor spaces like parklets.

One piece of the permanent-parklet puzzle has already been solved in some cities, including San Francisco. Earlier this summer, Mayor London Breed signed legislatio­n allowing businesses that erected pandemic-era parklets to apply for permanent permits. But the state, not the city, regulates alcohol service, and without SB314, restaurant­s might not be able to continue pouring alcoholic drinks in those city-approved outdoor spaces.

“Without 314, we can’t really make parklets work,” said Laurie Thomas, executive director of the Golden Gate Restaurant Associatio­n, which represents hundreds of San Francisco restaurant­s.

Also known as the Bar and Restaurant Recovery Act, the bill would give businesses that currently serve alcohol in outdoor spaces a one-year grace period to apply for a permanent permit. Additional­ly, the law would let multiple businesses serve alcohol within a space that has a single liquor license — allowing small businesses to pool their resources to share the high cost of such a license, which can run up to $250,000 in some cases in San Francisco. It would also expand catering permission­s. Right now, businesses can use a catering license at a single location 24 times; this would allow them to cater 36 events at each location.

The pandemic has spurred a welcome reconsider­ation of “antiquated” state liquor laws, said the bill’s sponsor, Sen. Scott Wiener (D-San Francisco).

“People got to see outdoor dining and alcohol service and saw that the sky didn’t fall,” he said. “In fact, people really like it.”

Wiener has long advocated for updating California’s alcohol regulation. Three years ago, he led an unsuccessf­ul effort to extend alcohol sales from 2 a.m. to 4 a.m. in cities including San Francisco and Oakland. He has another bill in the works that would create a new type of liquor license specific to music venues, and would also allow cities to establish open-container zones. The senator expects the Legislatur­e to consider that bill, SB793, in January.

The passage of both bills through the legislatur­e is encouragin­g, said the Golden Gate Restaurant Associatio­n’s Thomas. However, Thomas added, she was disappoint­ed by the revisions to Dodd’s original bill, specifical­ly the limitation of takeout drink service to restaurant­s and bars that operate full kitchens. Many businesses with different types of licenses have come to depend on cocktails to go as part of their daily sales.

“We are concerned that many people will lose revenue,” Thomas said, “especially since some restaurant­s will have to take the drinks off their thirdparty delivery menus.”

Still, Thomas said the news was positive overall and that the likely passage of both bills pointed to an easier road ahead for Bay Area restaurant­s.

“We’re not out of the woods yet,” she said of the pandemic. “Let’s hope we keep moving in the right direction.”

 ?? Photos by Carlos Avila Gonzalez / The Chronicle ?? Diners enjoy dinner and drinks at San Francisco’s Terzo restaurant, which has been operating a parklet.
Photos by Carlos Avila Gonzalez / The Chronicle Diners enjoy dinner and drinks at San Francisco’s Terzo restaurant, which has been operating a parklet.
 ??  ?? A glass of wine at Terzo. Two bills that aim to legitimize alcohol-related rules are on the governor’s desk.
A glass of wine at Terzo. Two bills that aim to legitimize alcohol-related rules are on the governor’s desk.
 ?? Carlos Avila Gonzalez / The Chronicle ?? Diners at Terzo restaurant. Sidewalks throughout the Bay Area are now dotted with parklets.
Carlos Avila Gonzalez / The Chronicle Diners at Terzo restaurant. Sidewalks throughout the Bay Area are now dotted with parklets.

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