The committee voted 15 to 3 to advance the proposal.
The proposal comes amid rising concerns about public safety related to late-night alcohol sales at liquor stores and other businesses.
The initial legislative package was introduced on May 26, and called for banning alcohol sales after 10 p.m.
Lightfoot believes restricting sales will reduce crime and improve the quality of life in some neighborhoods.
The ordinance was introduced to the Committee on License and Consumer Protection as part of the Chi Biz Strong Initiative.
The Chi Biz Strong Initiative is a plan to help businesses, workers and residents recover from the COVID-19 pandemic.
On average, there are over 50 calls per liquor store to 911 each year. Calls for disturbances at liquor store locations went down 75-percent when hours were limited last year.
The proposal will not impact purchasing alcohol at bars and restaurants.
The measure will go before the full City Council next week.