The order to review establishments that serve alcohol was born out of concerns that there is an overconcentration of such businesses downtown.

Neither of the two restaurant owners intends to convert his business to a bar scene, but the businesses' presence contributes to the growing number of downtown businesses that are serving or expanding liquor service. According to town staff, 45 of the 65 restaurants in the core downtown area currently serve alcohol.

Visit Taveethamcharoen, owner of the new Thai-rific restaurant at 217-A N. Santa Cruz Ave., asked the town to permit him to serve beer and wine with meals in order to compete with other restaurants in the area.

According to Randy Reedy, who is representing Taveethamcharoen, the previous tenant at 217-A. N. Santa Cruz Ave.—Aoyama Japanese Restaurant—failed to attract a large dinner crowd because the restaurant could not serve any alcohol.

"We need to support them without putting excessive regulations on them that will create a situation where it's impossible to succeed," Reedy said about Taveethamcharoen's staff.

In putting his stamp of approval on the request, Councilman Joe Pirzynski said he was allowing Thai-rific to serve beer and wine because this is the only existing fine Thai restaurant, whereas Aoyama was not the only Japanese restaurant around.

"I am pleased that we are gaining another international restaurant in the downtown. It goes to helping our mix and the fabric of our downtown," Pirzynski said, adding that the town's General Plan—a document that guides the town's development—calls for vibrancy in the area.

The town council's unanimous decision to allow Thai-rific to serve alcohol marks the first time a new business has received such approval since August 2000.

Along with the council's decision regarding Thai-rific, the planning commission last week voted 5-0, with two commissioners absent from the vote, to recommend to the town council that it allow Tapestry to expand its liquor license. The restaurant only serves beer and wine with meals right now but wants to offer full liquor service with meals.

Tapestry owner Gary Messick wrote in a letter to the town that when the restaurant opened at 11 College Ave. five years ago, fewer businesses served alcohol, but that has changed. According to Messick, Willow Street Wood-Fired Pizza and the Los Gatos Brewing Company have since added full bars; California Café and Steamers reopened with full bars; and Café Primavera, Kuleto's Los Gatos and Forbes Mill Steakhouse all opened with full bars.

"We used to have more of a wine-drinking climate. Cocktails were not as fashionable as they have been in the last few years," Messick said after the planning commission meeting.

"We just want to level the field here. We don't want to be a bar; we simply want to offer cocktail services to our customers."

Before deciding on its recommendation to the council, the planning commission added a condition that the restaurant cannot build a separate bar area.