Liquor Licenses Plunge in San Francisco

Cameron DeRuosi, a San Francisco liquor license broker, said May 20 that the market price for the city’s full-service restaurant liquor licenses has fallen to about $100,000 from roughly $250,000 in 2022. NBC Bay Area and SFist, citing reporting by the San Francisco Chronicle, said some recent sales went for as little as $70,000 to $85,000. The drop affects Type 47 licenses, which allow restaurants to sell beer, wine and distilled spirits for on-site consumption. In San Francisco, those licenses have long traded privately because the city’s supply is constrained under California’s quota system. ### Why were San Francisco liquor licenses so expensive in the first place? California’s quota system capped licenses at one for every 2,000 residents, and SFist reported that San Francisco kept far more existing licenses when that rule was set because the city already had about 1,000 bars and restaurants serving alcohol. That left many newer businesses needing to buy a license from an existing holder instead of obtaining a newly issued one. (nbcbayarea.com) Senator Scott Wiener’s office said in a February 18, 2025 release that licenses on the secondary market in San Francisco could cost $200,000 or more. The California Department of Alcoholic Beverage Control said an existing license can be transferred to a new owner, but the buyer and seller must file an application and obtain agency approval. The agency said some transfers also involve a change of premises, and San Francisco’s Board of Supervisors says applicants in areas with an undue concentration of licenses or crime may need a “public convenience or necessity” determination. (sfist.com) ### How far have prices fallen? DeRuosi told NBC Bay Area that sellers were getting about $250,000 net in 2022 and about $100,000 now. He said he had seen transactions as low as $70,000 to $85,000. SFist, citing the Chronicle, reported that the market hit a low point around $95,000 in late 2025 before edging up slightly. SFist reported that San Francisco has 741 Type 47 licenses. (abc.ca.gov) The outlet also said the state ABC lists between 202 and 210 active Type 48 licenses in the city, which are general on-sale licenses for bars that do not require food service. ### Who says the decline reflects pressure on restaurants? DeRuosi told NBC Bay Area that businesses are closing and selling licenses at a loss because of higher labor, liability and food costs. (nbcbayarea.com) Yahoo Finance’s pickup of the Chronicle report said DeRuosi viewed the license market as a barometer for the restaurant industry and said San Francisco had been hit hardest in the state. (sfist.com) Thad Vogler, the former owner of Bar Agricole and Trou Normand, told the Chronicle, as quoted by SFist, that the price of a liquor license reflects what people believe about San Francisco and the restaurant business. SFist said Vogler had paid about a quarter-million dollars for licenses tied to his former bars. ### Does the price drop create any opening for new operators? (nbcbayarea.com) Colm O’Brien, owner of Bar 49, told NBC Bay Area that cheaper licenses could help younger operators enter the market. “I think it’s positive for the neighborhood and the city going forward because it allows a younger generation, people with more creativity to get their hands on a license and open a space,” he said. (sfist.com) Scott Wiener and Mayor Daniel Lurie said in February 2025 that SB 395 would create 20 new lower-cost liquor licenses in a downtown hospitality zone around Union Square, Yerba Buena Gardens and Moscone Center. Their offices said the measure was intended to support nightlife and small businesses in downtown San Francisco. (nbcbayarea.com) ### What happens next if an owner wants to buy one now? The California ABC says a buyer seeking to take over an existing license must file a transfer application signed by both the current licensee and the transferee. The agency said applicants typically start with the nearest ABC district office and may need zoning approvals, escrow documents and other filings before the transfer is completed. (sd11.senate.ca.gov) San Francisco’s Board of Supervisors says some applicants will also need a public convenience or necessity determination before the state can issue or transfer certain licenses in the city. The city’s fact sheet directs applicants to the ABC office for guidance on whether that local approval is required. (sf.gov) (abc.ca.gov)