This accounts for 95 percent of San Francisco retail businesses, Breed said.
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The announcement does not apply to malls.
Manufacturing can resume as well, but with modifications, the mayor said.
This news comes as hospitalizations in San Francisco remain flat amid the coronavirus crisis.
REOPENING CALIFORNIA: Newsom gives guidelines to reopen dine-in restaurants, malls, offices and more in CA
"This is a meaningful step on the gradual path to the new normal," said Grant Colfax, San Francisco's public health director.
Both Colfax and Breed said this is "good news" for San Francisco.
"It means our city is doing better," Colfax said.
The health director said he is thankful for residents' efforts throughout the pandemic and shelter-in-place order.
"San Francisco, I can't thank you enough for your steadfast courage and dedication to the health of the entire community," Colfax said.
RELATED: CA superintendent suggests staggered reopening of schools
As of Wednesday, there are 1,994 cases of coronavirus in San Francisco. Seventy patients remain hospitalized and 35 San Franciscans have died of the virus to date.
During Wednesday's press conference the mayor addressed the significant economic impact San Francisco is facing because of the pandemic.
The city is tasked with a $1.7 billion deficit and must close a $250 million shortfall in the current year, according to the city.
On Monday, the mayor discussed San Francisco's reopening and transition into Gov. Gavin Newsom's "Phase 2," which has allowed non-essential businesses to reopen and some manufacturing to resume operation in California.
San Francisco implemented stricter orders than the state, but will transition into Phase 2 and reopen businesses on Monday.
REOPENING CALIFORNIA: Newsom gives guidelines to reopen dine-in restaurants, malls, offices and more in CA
Gov. Newsom detailed reopening requirements for dine-in restaurants and shopping malls on Tuesday, but so far, only 18 of the 58 California counties have the green light to move forward with reopening.
Those counties are: Amador, Butte, Calaveras, Colusa, El Dorado, Glenn, Lassen, Mariposa, Nevada, Placer, Plumas, San Benito, Shasta, Sierra, Sutter, Tehama, Tuolumne and Yuba counties.
Once open for dining in, restaurants will have to follow strict precautions outlined by the state.
In terms of reopening San Francisco restaurants for dine-in, Colfax said "Monday, the 18th, is a big step in that direction," but there is no timeline yet.
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Last week, Breed said some businesses in San Francisco, like bookstores and florists, could open as soon as next Monday, but that was dependent on hospitalizations and COVID-19 cases in the city.
PHASE 3: Gov. Newsom teases next stage of reopening California businesses is closer than we thought
Thanks to the steady number of hospitalizations, the majority of San Francisco retail businesses will reopen for curbside and delivery on Monday.
The reopening of restaurants and shopping malls in San Francisco has moved much slower than other rural parts of the California.
San Mateo County is the only other Bay Area county to announce a transition into the governor's Phase 2 of reopening, issuing this statement on Wednesday.
Director of Public Health Grant Colfax outlined five guidelines earlier this week for San Francisco businesses to reopen:
1. Create a health and safety plan
2. Ensure face coverings and safe social distancing in the workplace
3. Provide proper cleaning materials such as handwashing stations, hand sanitizers and wipes
4. Protect customers by marking social distancing marks
5. Limit handling of produce by customers and ending all self-service foods and drinks
San Francisco health and city officials urge residents to practice social distancing, wear face coverings and get tested for the virus if you work outside.
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