The best latte I have ever tasted came from
Caffé Espresso (462 Powell St., 415/395-8585, www.caffeespresso.com [1], breakfast, lunch, and dinner daily). On the ground floor of the Sir Francis Drake Hotel, this coffee bar with its soft yellow walls and vintage Parisian framed prints feels like it belongs in Europe. Alcoholic coffee drinks are served at the bar, and off to one side you can get a sandwich, salad, or panini from the little deli counter.
This is the perfect place to sit and rest your weary feet after a long day of shopping or sightseeing, and watch the cable cars [2] roll past the window on Powell Street.
Links:
[1] http://www.caffeespresso.com
[2] http://www.moon.com/destinations/california/san-francisco-and-the-bay-area/sights/union-square-and-nob-hill/cable-cars