The buzzword at San Francisco’s City Hall these days is “streamlining.” Mayor Daniel Lurie has made it clear that he aims to simplify the permitting process for small businesses. In fact, on the day of his inauguration, Lurie vowed that the long-standing struggles of new restaurants and entrepreneurs navigating a labyrinth of bureaucracy would soon be a thing of the past. “The era of a new restaurant undergoing 40 inspections and receiving 50 different answers is over,” Lurie stated.
Yet, for many local business owners, the permitting process remains an overwhelming challenge. Jose Castillo, owner of Cielito Lindo Taqueria in San Francisco’s Outer Richmond neighborhood, is all too familiar with the frustrations that accompany this bureaucratic maze. Castillo’s restaurant endured a nearly four-year permitting journey, riddled with hefty fees and the complex requirements of building and planning codes.
“The city throws obstacle after obstacle in your path,” Castillo said, recalling the arduous process that left him financially drained. Among the more vexing issues was the need to install two separate electrical meters—one for his restaurant and another for the building itself. Each modification to the plans added additional costs, all while Castillo continued to pay rent for a closed business.
Aiming to reduce such burdens, Mayor Lurie has outlined a vision for a more accessible permitting process, one that would allow applicants to manage their applications online. Katy Tang, a member of the PermitSF reform team at the Office of Small Business, emphasized the need for transparency. “Our goal is to give applicants a clear view of their permitting journey—showing them where they are in the process and providing clear timelines,” Tang explained.
However, the complexity of San Francisco’s permitting system is not easily reduced. The city’s planning code consists of over 2,500 pages across three binders, filled with layers of regulations added over the years by city supervisors. These convoluted rules make even seemingly simple tasks challenging. For example, Bastian Schoell, the owner of The Spanish Table, discovered just how complicated the process could be when he sought to obtain a permit to serve wine at his store, which already sells bottled wine.
Despite his expectation of a straightforward approval process—thanks to Proposition H, a measure designed to streamline small business permits—Schoell encountered unexpected hurdles. “We thought this would be quick, but we hit a wall,” he said. “This is going to take six months, and I can’t even figure out these forms.” Schoell, who had already obtained a Type 20 license to sell wine, now faced an additional hurdle: securing a Type 42 license to serve wine by the glass.
To make matters more complex, Schoell’s application required him to navigate through 11 distinct steps just to apply for a conditional use permit. These steps included submitting architectural plans, undergoing plan reviews, and attending a public hearing where any member of the public could voice their opinion. And that’s just the beginning. Once the permit is granted, approval from the Board of Supervisors and the mayor is still required before an alcohol license can be issued.
After six months of struggling with paperwork and bureaucratic delays, Schoell decided to hire a consultant to help navigate the process—at an estimated cost of $10,000 for both the consultant and an architect.
Meanwhile, Castillo, after a prolonged battle with the permitting system, finally has his business up and running. Although he is still paying off his debt, Castillo feels a sense of accomplishment. “I did it! No matter what, I told the city, I did it!” he said with a smile, proud to have overcome the hurdles that almost brought him to the brink.
While San Francisco’s government promises reform, business owners like Castillo and Schoell continue to face a daunting and complex path to opening and operating their businesses. Though the goal of streamlining the process is clear, the reality on the ground remains fraught with bureaucratic obstacles.
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