San Francisco Zoning Laws Block Indian Coffee Cafe in North Beach Amidst Vacancy Crisis

San Francisco, CA – Milana Ram and Himanshu Bhaisare, a couple aiming to open a cafe in North Beach that would feature coffee from Ram's family farm in India, are facing significant hurdles due to the city's restrictive zoning regulations. Despite identifying an ideal location that has remained vacant since 2018, current rules specifically prohibit the establishment of a new cafe in the designated North Beach Special Use District. This situation highlights a broader issue of persistent retail vacancies across San Francisco.

The couple's ambition to bring their unique coffee offering to the neighborhood is stymied by a planning code designed for a bygone era. "The only problem? Current rules actually ban this cafe from opening!" tweeted Supervisor Danny Sauter, underscoring the bureaucratic impasse. This particular zoning district, intended to preserve neighborhood character, inadvertently prevents the conversion of vacant retail spaces into new businesses like coffee shops, restaurants, or bars, unless they replace a similar existing establishment.

Supervisor Danny Sauter, representing District 3 which includes North Beach, has been a vocal proponent of reforming these "broken" zoning laws. He has actively campaigned on a platform to ease the burden on small businesses and fill the city's numerous empty storefronts. Sauter is pushing for "flexible retail" rules that would allow a wider range of businesses to occupy vacant commercial spaces, acknowledging that the current regulations contribute to the high vacancy rates.

San Francisco has grappled with a stubbornly high retail vacancy rate, reaching 7.6% citywide in Q1 2025, with some areas like Union Square and Van Ness Avenue experiencing much higher rates. Critics argue that mandatory ground-floor retail requirements in new buildings and rigid conversion rules for existing spaces exacerbate the problem. While legislative efforts are underway to streamline permitting and loosen some restrictions, progress has been slow, often facing resistance from neighborhood groups concerned about preserving local character or preventing chain stores.

The plight of Ram and Bhaisare illustrates the challenges faced by small entrepreneurs attempting to navigate San Francisco's complex regulatory landscape. Their proposed cafe, which would import coffee directly from Ram's family farm, represents the kind of unique, locally-driven business that many residents desire. The ongoing debate surrounding zoning reform seeks to balance neighborhood preservation with the urgent need to revitalize commercial corridors and foster new economic activity.