Board grants Chai Cart a six‑month conditional permit after debate over 'like foods' and sidewalk congestion

The San Francisco Board of Appeals on April 10 granted a six‑month conditional mobile‑food permit to the operator of the Chai Cart at 79 New Montgomery Street, overturning a Department of Public Works denial that had cited nearby “like foods” and sidewalk congestion.

Pavan Kothari, the cart owner, told the board his operation serves a single item — an Indian chai prepared “from scratch” using a black tea and fresh spices — and that each sale takes only seconds. “We only sell chai; we prepare it at a commissary and pour it out in a cup and hand it to the customer,” Kothari said, arguing his product is not the same as a Starbucks or a full cafe offering.

The Planning and DPW record showed DPW rejected the application under DPW Order No. 179044, which directs staff to consider menu composition and nearby food establishments when evaluating permits. DPW’s site review and three written objections in the file led the department to conclude that, given heavy pedestrian traffic in the Financial District, maintaining a continuous 6‑foot clear path at that location would be difficult. “Due to the heavy pedestrian traffic in the area, it would be very difficult to maintain a 6‑foot clear path of travel at all times,” DPW’s Nick Elsner said in testimony.

Board members weighed those competing points and several precedents about whether limited‑service beverage carts constitute “like foods.” The board also considered Kothari’s operating details: the cart measures roughly 7 feet by 5 feet, Kothari’s materials indicated the busiest hour serves about 20 customers with rapid transactions, and the operator proposed a short-term conditional permit to allow monitoring and complaints-based removal if problems occur.

Vice President Anne Lazarus moved to grant the appeal and issue a six‑month conditional permit, finding the chai did not appear to be a directly competing “like food” in the manner intended by DPW’s standard and that a six‑month term would allow assessment of traffic impacts. The motion passed 4‑0. The permit was issued with findings that (1) the Indian chai as described does not appear to be “like foods” within the DPW analysis and (2) the six‑month period will allow staff to analyze pedestrian impacts.

The permit is conditional: DPW can act on complaints during the trial period and renewal will follow the department’s normal one‑year renewal process if no objections are received. Kothari told the board he would accept a six‑month conditional permit and the requirement to address valid complaints.