Could it be that MacDo just called the SF city council's bluff? I'm not sure this is evidence that the city council sucks at intervening: the council did something straightforward to communicate their intent. The company brazenly thumbed its nose, so they must believe the council to be utterly weak-willed or powerless.

If the city council is not bluffing, they'll push for more restrictive laws. And in another time and place, perhaps health, safety, and zoning commissions would come knocking.