S.F.’s latest plan to help struggling movie theaters: Make it easier for them to serve alcohol

An effort to reboot the long-vacant Clay Theater in San Francisco’s ritzy Pacific Heights neighborhood as a highly programmed arts, culture and theater space is gaining traction — and a potential reprieve from strict zoning rules by the neighborhood’s supervisor.

On Tuesday, District 2 Supervisor Stephen Sherrill was expected to announce legislation to, among other things, remove local zoning hurdles for movie theaters across the city that have one or more auditoriums and want to serve alcoholic beverages. Adult theaters are not included in the legislation.

In San Francisco, the state law requiring businesses that want to serve beer, wine and liquor to operate as restaurants by serving meals and obtain appropriate liquor licenses is fortified by a local rule that requires them to pass a “revenue test” — meaning that 51% of their revenue comes from food sales…

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