The City of Cambridge last week denied liquor licenses to two Central Square restaurants and prohibited a fast food restaurant from entering the area as part of a continuing effort to change the nature of the business district.

The Cambridge License Commission denied liquor licenses to two Indian restaurants, Gandhi and Old Calcutta, and prevented Warburton's from moving into the square because a current city moratorium has set a limit on the number of liquor licenses and fast-food restaruants in the area.

The moratoriums exist because they "preserve the public health and safety and promote the economic welfare in Central Square," said James McDavitt, License Commission chairman.

The owners of the Indian restaurants, Ascharj Jaggi and Sukhdev Keser, both said they applied for liquor licenses despite the moratorium because they were told that it may be lifted. The owners of Warburton's refused to comment.

However, city officials said that they were not reconsidering the liquor license moratorium, though they did reconsider the fast food moratorium.

After reconsidering the fast-food limit, the Central Square Economic Development Subcommittee last week completed a report recommending to the City Council that a moratorium capping the number of fast food restaurants in the area be extended and made a permanent policy.

The proposal, which will be considered by the Council in December, would prohibit anymore fast-food restaurants from moving into Central Square. It defines a fast-food restaurant as one that uses disposable dinnerware, does not have individual printed menus, and seats fewer than 75 percent of its customers at tables.

Officials said that fast food restaurants create litter and do not draw consumers from elsewhere to Central Square. License commission members also said that there were already enough fast-food restaurants in the area to provide ample inexpensive food sources.

Liquor licenses are capped, officials say, because Central Square has been plagued with alcohol problems. One-fourth of all drunk driving arrests in the city occur in Central Square, McDavitt said.

The two Indian restaurant owners were disappointed by the liquor license denials. Jaggi, owner of the Gandhi Restaurant, said it was unfair that his restaurant was not allowed to serve liquor. He said Gandhi would not turn into a bar since he would not serve hard liquor and would only serve until 10:30 p.m.

Moratoriums on liquor and fast-food currently exist on seven areas in Cambridge, including Harvard Square.