You’ve Entered the Entertainment Zone (Part 2)

Gregg Hanour

Has anyone ever hired a third party to analyze the financial impact of Entertainment Zones? 





PRIOR RECAP IN SERIES


Why is it impossible to find a study on the financial impact that Entertainment Zones have on cities and community safety? A study that includes both the financial benefits and detriments.


An oversaturation of alcohol businesses in an area negatively impacts the profitability of those businesses. 


An alcohol business that is financially struggling has the potential to become a much higher safety risk to customers and the community.


The official who approved publication of NYC’s Nightlife Economy—Impact, Assets, and Opportunities report should be fired, replaced by anyone who has ever worked at 3M.


Fullerton intentionally grew the number of alcohol businesses in their Overlay District to 49, significantly increasing foot traffic and the problems, resulting in the 49 businesses creating an annual deficit of close to one million dollars.



Short on Time? Skip to the Recap Below!




The San Francisco Experience


The smashing success of San Francisco’s entertainment zone experiment fueled the passage of Senate Bill 969, California’s new Entertainment Zone law. Celebratory crowds--most drinking--packed the streets, driving up sales for the alcohol businesses within the party zone.


While my gut tells me this one-off event in San Francisco was a net financial gain for the city, it’s still important to know:


—  If it really was a financial winner for the city. In other words, what were the added expenses resulting from the event?

—  How did the event impact community safety? The data is there, but someone needs to review and share it.

—  How much did funneling so many people into this event negatively impact other alcohol businesses in the city?


A driving force behind Entertainment Zones is getting customers to return to the alcohol businesses that line downtown city streets. I get it. For my friends who live in SF and LA, the amount of homelessness in the area significantly influences where they go to eat and drink.


As I said in Part 1 of this article, I am not against the concept of Entertainment Zones. To maximize the chances that an Entertainment Zone is positive for all stakeholders, consider documenting a Project Justification report. The report would include a cost-benefit analysis and a safety analysis that identifies risks and mitigation plans.


Risk mitigation is the perfect segue to discuss what California documented in Senate Bill 969 to ensure public safety is guarded in Entertainment Zones. How did the State do? 


The Short Answer


“An amazing job! Impactful state requirements were documented, while also providing cities with factors to consider when defining local controls and conditions,” said no one who read Senate Bill 969.





The Longer Answer


Here are the standard conditions the State places on alcohol businesses operating in an Entertainment Zone:


—  “No alcoholic beverages purchased at a participating licensed premises may leave the premises in an open glass or metal container.”


—  “Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.”


Here is what the State requires of a city or county that establishes an Entertainment Zone:


—  “Establish a process or procedure by which persons in possession of alcoholic beverages in the entertainment zone may be readily identifiable as being 21 years of age or older.”


—  Communicate to the ABC, “The approved nonglass and nonmetal containers in which alcoholic beverages may be authorized.”


There are additional administrative requirements, but I’ve covered the controls required by the State. 


Evidently, the State will be comfortable with whatever additional conditions a city or county does or doesn’t mandate, as long as adults are identified, and no one is drinking from glass or metal containers.


There are zero requirements for businesses, cities, or counties to address:


-Minors drinking alcohol in Entertainment Zone

Staffing from the businesses, cities, or counties to monitor who is drinking the alcohol that is now permitted to leave a business and be consumed in likely large spaces—spaces where the business can’t legally deliver drinks (which would have enabled them to see if minors were consuming alcohol).


-How overservice and overconsumption will be controlled in Entertainment Zones. 

Staffing from the businesses, cities, or counties to identify obviously intoxicated customers and cut them off from additional drinks. Since servers can’t legally deliver drinks, there won’t be eyes on those drinking outside.


-Limiting customers who are leaving premises with alcohol to only one drink, and selling only one alcoholic drink at a time.

As the law is written, a customer can order a dozen (or more) shots made from Bacardi 151, exit the business, and share with whomever that customer chooses, with no monitoring. Minors or stumbling drunks might get those shots.


-The requirement for ridesharing stations along the perimeter of the Entertainment Zone.

These stations would encourage more attendees to attend the event by ridesharing, which has been shown to reduce DUI crashes. Ridesharing reduces the risk of customers parking in neighborhoods or taking commercial and retail parking.


The ABC website should contain a checklist of Best Practices for Entertainment Zones.


There’s so much more that can be done to protect all stakeholders, starting with using common sense.



The Answers Are Out There


Creating Entertainment Zones offers a tremendous opportunity for government officials, law enforcement, and the alcohol businesses to agree on new operating conditions if an Entertainment Zone is to be approved.


  • Conditions that protect city resources, guard public safety, and improve business viability.


This Insight is not designed to list the fifty-plus practices in Best Practices for Nightlife Establishments, and then identify which can be reworded into meaningful conditions, versus those best practices that should be shared but not mandated.


In theory, Lauren and I are not against the concept of Entertainment Zones. We believe:


  • An independent analysis of existing ongoing Entertainment Zones would be helpful to cities and counties considering permitting such zones. The analysis would include the city revenue and expenses connected to the zone; the impact on public safety; how businesses were impacted within and outside the zone; and lessons learned from Entertainment Zones.


  • Entertainment Zones offer an opportunity for the various stakeholders to agree on new, innovative conditions and practices that benefit all groups.




RECAP


Still asking . . . Why is it impossible to find a study on the financial impact Entertainment Zones have on cities and community safety? A study that includes both the financial benefits and detriments.


San Francisco’s entertainment zone experiment during its 2024 Oktoberfest party was a huge success in attracting customers and supporting local businesses. It’s unknown how it impacted businesses outside of the zone, city resources, and public safety.


The driving force behind the approved Entertainment Zone bill was to attract more visitors to downtown businesses. 


The State of California requires minimal from businesses that operate within Entertainment Zones. The State places almost no requirements and provides no meaningful guidance to cities or counties approving Entertainment Zones.


Entertainment Zones should be independently studied for their impact on city resources, public safety, and businesses inside and outside the zone.


Entertainment Zones offer a unique opportunity for all stakeholders to agree on new, innovative conditions and practices that benefit all parties.








By Gregg Hanour • October 6, 2026
That's the decision . . .
By Gregg Hanour • September 28, 2026
In our last blog we discussed how the overconsumption of alcohol is the enemy, not the moderate consumption of alcohol. Moderate Drinkers are Safer Multiple research studies have shown that people who consume alcohol and keep their BAC to below .06% are safer. “There is agreement in the scientific community about what defines ‘moderate drinking.’ Also, moderate drinking means limiting how fast you drink and, as a result, keeping your blood alcohol concentration (BAC) below .055.” (Source: Hester) In general, those who drink excessively are more aggressive and also get injured more seriously than those who drink moderately or not at all. Moderate drinkers do not appear to be at significantly higher risk of injury than nondrinkers. (Source: Scott and Dedel) The Higher the BAC, the Greater the Risk of Harm Alcohol follows a dose-response curve— higher BAC leads to higher risk across all major harms, including crashes, injuries, and violence. Harm rises exponentially as demonstrated by this chart from National Highway Traffic Safety Administration on the risk of crashing at given BAC levels.
By Gregg Hanour • September 22, 2026
The Root Cause: Overconsumption of Alcohol T he main purpose of CUP conditions for your on-sale alcohol businesses is to lessen any negative impacts and ensure the operation is in harmony with your community Most problems caused by your bars and restaurants are the direct result of the overconsumption of alcohol—including altercations, nuisance complaints from neighbors, and vehicle crashes. Cities that have calculated the net effect of alcohol businesses on their general fund have discovered a minimum net loss of $1 million dollars—caused mainly by calls for service due to violence and medical problems from overservice. The insurance industry says that 90% of insurance claims at bars and restaurants are the direct result of the overconsumption of alcohol. My experience as an operator and consultant to the hospitality industry suggest that 90% of the time, calls for service are due to one or more customers having consumed too much alcohol. Studies confirm the relationship between higher levels of intoxication and violence. Using Logic to Choose an Action to Solve the Problems Since the goal of writing conditions of approval is to lessen problem . . . And since most problems stem from the overconsumption of alcohol . . . Shouldn’t the conditions aim to lessen overconsumption? In fact, shouldn’t a major focus of your entire approval process—from approving, conditioning, and onboarding—be to message best practices to lessen overconsumption? In reducing the overconsumption of alcohol, all stakeholders benefit: Public safety is improved from less violence and fewer DUI tragedies. City public safety expenses are reduced. Business profits are protected from insurance claims and lawsuits. There are many ways planners and law enforcement can reduce overconsumption in newly-approved on-sale alcohol businesses. In reducing overconsumption, your city saves money—lots of money. This isn’t just our opinion. A Study to Bank On According to this study, for every $1 a city spends to reduce intoxication, it saves $260 (Levy & Miller)
By Gregg Hanour • September 15, 2026
Most city leaders assume their bars and restaurants pay for themselves. The numbers say otherwise—and closing the gap starts with rethinking two common assumptions.
By Gregg Hanour • September 9, 2026
Most city leaders assume their bars and restaurants pay for themselves. The numbers say otherwise — and closing the gap starts with rethinking two common assumptions.
By Gregg Hanour • September 2, 2026
I’ve been known to get a little obsessed with reaching goals — whether it’s catching a trophy brown trout over 10 pounds or hitting a Pick 6 for more than $50,000. Did I accomplish those goals? You’ll find out at the end. Another goal of mine is far more important and challenging: changing how California cities approve, condition, and onboard new on-sale alcohol businesses (restaurants, bars, clubs, and similar establishments). That's why I teamed with retired ABC District Administrator Lauren Tyson to design our upcoming workshop on best practices for conditional use permits (CUPs) and entertainment permits. The current process sucks. Yes, I sometimes use technical language. Who’s Behind This? I’ve spent years training hospitality operators, planners, and law enforcement on exactly this problem, and wrote a book on the topic, A Business Approach to Reducing DUI, along the way. Link to Gregg’s bio Lauren wrote the book on it — literally. As a former ABC District Administrator and author of Perils of Selling Alcohol: A Guide for Bar Owners Facing Legal Trouble, she’s seen exactly what puts ABC-licensed businesses at risk, and what actually protects them and the public. Link to Lauren’s bio How Do I Know the Current Process Isn’t Working? Let Me Count the Ways Personal experience. I went through the process twice — once in Costa Mesa and once in Irvine. In both cases, very smart, dedicated planners, working with law enforcement, created extensive conditions of approval. One business had 32 separate conditions. Both businesses followed every condition, yet both were still public nuisances for years. Working with applicants. Lauren and I have helped dozens of applicants successfully navigate their city’s CUP application process. Yet the operating conditions cities impose rarely (read never) have a meaningful impact on reducing violence or problems. Reviewing city policies statewide. We’ve collected CUP conditions and operating requirements from 35 cities across California, including several known for leading the way in responsible ordinance writing. The reality? A business can follow every specific condition of approval and still become a public nuisance. Training professionals. We’ve conducted in-person workshops for planners and law enforcement on this topic. Presenting at conferences. Together and separately, we’ve presented on these issues at professional conferences. Academic research. While writing my first book, A Business Approach to Reducing DUI, I researched the topic extensively, including contacting five of the leading urban planning universities to review their curriculum. Working directly with operators. I’ve trained over a thousand hospitality owners and managers. I understand their concerns, their daily realities, and why too many close. Revising how cities approve, condition, and onboard new businesses doesn’t just protect city resources and public safety — it also guides businesses toward practices that improve their profitability. The Bottom Line When cities use best practices to approve, condition, and onboard new on-sale alcohol businesses, the outcome looks very different. Applicants who complete the CUP process and open for business will hear consistent messaging — from planners, planning commissioners, code enforcement, and law enforcement — about the operational practices that significantly reduce violence and problems. Applicants will receive meaningful conditions of approval that, when followed, actually reduce risk for all stakeholders. Applicants will experience impactful communication with code enforcement and law enforcement that keeps the operator focused on practices that protect both the business and the community. That’s what effective onboarding looks like. We hope you’ll join us for our upcoming Zoom workshop. And if you twist my arm, I might even share a few brown trout fishing tips. Yes, I did catch that trophy brown — a 17-pound, 7-ounce beauty. I also hit that big Pick 6. If you ask how to hit a $50,000 Pick 6 at the racetrack, my advice is simple: Start with a $100,000 bankroll. WORKSHOP Conditional Use Permits, Entertainment Permits, and On-Sale Alcohol Oversight 📅 Date: Wednesday, October 28, 2026 🕐 Time: 10:00 a.m. – 12 Noon Pacific Time (2 Hours) 📍 Location: Live via Zoom ✅ POST Certification pending | APA Certified 2.0 CM COST -$330 per attendee; or -$990 flat rate per city (up to 10 attendees from your city) Learn more Register for the workshop WHO SHOULD ATTEND This workshop is designed for professionals responsible for reviewing, approving, or monitoring alcohol licenses, including: • City planning officials • Law enforcement personnel • Code enforcement officers • Planning commissioners Everyone involved in approving, conditioning, or onboarding new ABC on-sale licensed businesses must deliver a consistent, informed message at every step of the process — this workshop ensures they can. We offer a significantly reduced tuition for a group because the gains from this workshop grow exponentially when every department is trained together.
By Gregg Hanour • August 24, 2026
Alcohol Best Practices is pleased to announce a new Zoom workshop for public officials and law enforcement professionals involved in alcohol license oversight. Conditional Use Permits, Entertainment Permits, and On-Sale Alcohol Oversight 📅 Date: Wednesday, October 28, 2026 🕐 Time: 10:00 a.m. to 12:00 Noon,Pacific (2 Hours) 📍 Location: Live via Zoom (link emailed upon registration) ✅ POST Certification pending | APA Certified 2.0 CM COST -$330 per attendee -$990 flat rate per city (up to 10 attendees) Learn more Register for Workshop WHO SHOULD ATTEND This workshop is designed for professionals responsible for reviewing, approving, or monitoring alcohol licenses, including: • City planning officials • Law enforcement personnel • Code enforcement officers • Planning commissioners Everyone involved in approving, conditioning, or monitoring new ABC on-sale licensed businesses must deliver a consistent, informed message at every step of the process — this workshop ensures they can. WHY THIS WORKSHOP IS NEEDED After analyzing dozens of Conditional Use Permits (CUPs) from cities across California, we identified critical gaps in how cities handle new alcohol license approvals: Existing CUP processes lack essential messaging to applicants Legacy approval conditions miss the most impactful requirements Newly approved businesses receive little to no meaningful onboarding Until now, there has been no training resource for best practices in approving, conditioning, or monitoring new ABC on-sale licensed businesses. Contracting with us to revise your city's approval and onboarding process is a significant investment. This workshop offers a cost-effective alternative, equipping your team with proven strategies that: ✔ Reduce violence, DUIs and nuisance complaints ✔ Lower public safety expenses and calls for service ✔ Improve the profitability, performance, and professionalism of licensed businesses We look forward to seeing you there. Learn More Register for Workshop
By Gregg • January 6, 2026
(Insight in the “Drunk, Drunker, and High-Risk Drunkenness” series)
By Gregg Hanour • December 12, 2025
(Insight in the “Drunk, Drunker, and High-Risk Drunkenness” series) 
By Gregg Hanour • November 24, 2025
(Insight in the “Drunk, Drunker, and High-Risk Drunkenness” series)