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Board allows Espresso Subito coffee cart permits to stand after contested appeals; tie vote leaves DPW approval intact

San Francisco Board of Appeals · November 14, 2012
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Summary

Appeals by Second Street merchants argued that two Espresso Subito permits violate the 'like‑for‑like' 300‑foot rule for coffee sales in the Financial District. The board split 2–2; because three votes are needed to overturn DPW, the permits remain upheld by default.

Two permits allowing a coffee cart (Espresso Subito) to operate at alternating downtown locations were contested at the Board of Appeals on Nov. 14 by the Second Street Merchants and several brick‑and‑mortar restaurants, which said the city’s mobile‑food rules prohibit like‑for‑like competition within 300 feet.

The appellants argued that numerous nearby establishments sell coffee during morning hours and that a cart focused on espresso would take vital high‑margin sales from small retailers paying rent and taxes downtown. "How is someone that only has to pay a small fee and a parking quarter… fair business practice to those brick‑and‑mortar businesses?" said a merchant representative during public comment.

Permit holder Gary Goldstein said he limited operations to mornings (6–10 a.m.) and reduced days and menu offerings after consulting DPW guidelines. DPW staff explained their like‑for‑like analysis considers the entirety of nearby establishments’ menus and walking distance rather than a straight‑line radius; they reported that most nearby businesses sell coffee as part of broader menus while only Starbucks/Pete’s rely primarily on coffee.

Commissioners split on whether the espresso cart constituted "like food" under DPW guidance. A motion to deny the appeal failed 2–2; because three votes are required to overturn a departmental action, the DPW decision stands and the permits remain in effect.