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ALCOHOL POLICY GETS NEW TWIST
Virginia ABC considering changing rules governing ratio between food and liquor sales at restaurants
Date published: 9/23/2009
BY BILL FREEHLING Under a test program the Virginia Department of Alcoholic Beverage Control is running, some restaurants could significantly increase their take from liquor sales. Any Virginia establishment that sells mixed drinks, with the exception of private clubs, must maintain a food-to-liquor ratio of 45-to-55 under current ABC rules. In other words, for every $45 a restaurant makes in food and non-alcoholic beverage sales, it can take in no more than $55 from sales of liquor drinks. Beer and wine sales are not included in the calculation; restaurants that sell only beer or wine must do at least $2,000 per month in food sales. The food-to-liquor ratio has drawn complaints from establishments that complain it hasn't kept pace with liquor prices or people's tastes for more expensive drinks. Nightspots selling premium-liquor drinks for $10 or more can struggle to sell enough food to keep the ratio in balance. To address those concerns, the Virginia ABC has launched a two-year pilot program that experiments with the ratio. Twelve restaurants in the state--all located in the Northern Virginia, Richmond or Hampton Roads areas--are participating in the program. It runs through July 2011. The pilot program allows participants to base food sales on the volume of liquor purchased rather than the money they obtain from mixed-drink sales. The pilot participants will be required to sell $350 of food per gallon of liquor bought from ABC. Some simple math explains how the new rules could benefit businesses that are classified as restaurants but that rely heavily on liquor sales to survive. There are 128 ounces in a gallon, and the typical mixed drink has 1.5 ounces. That means there are about 85 drinks in a gallon. Restaurants that sell each drink for $5 would take in about $425 and be required to sell $350 worth of food. That is about in line with the current 45-55 ratio. But restaurants will be able to derive significantly more money from liquor sales if mixed-drink prices exceed $5, as is common. Drinks sold for $10 would allow restaurants to make roughly double what they can now make on liquor sales. W. Curtis Coleburn, who is ABC's chief operating officer and the architect of the pilot program, explained the history of Virginia's liquor laws and the rationale of the pilot program in the organization's summer newsletter.
Date published: 9/23/2009
well if they decide to ease it up some
(posted by
Ron_C
, Sep. 23, 2009 9:00 pm)
lets also make sure that DUI manslaughter gets prosecuted as a capital murder and the punishment gets carried out. Seems like it's way too regular an occurance reading about some loser that has had their license taken away and still manage to get behind the wheel and take the life of someone that was just in the wrong place at the wrong time. Unless someone has another suggestion that might actually deter the DUI's
Virginia
(posted by
louturks
, Sep. 23, 2009 8:22 pm)
Is a backward state. This Liquor law is one of the nonsense laws they have
Take a look at Maryland
(posted by
TPKeller
, Sep. 23, 2009 2:57 pm)
Drive north across the Potomac river, especially along the Route 301 corridor, and you will see many scummy establishments which remind us clearly why Virginia does not want stand-alone bars.
Intent
(posted by
LastManStanding
, Sep. 23, 2009 2:32 pm)
The intent of the rule is justifiable. We have enough drunks running around now as it is. Drink only establishments would only make that worse.
But man it sure would be nice to have a corner bar where everyone knows you by name to stop by on the way home from a brutal day of work.
Look at Matt Simmon's Comment...
(posted by
RescueRam3
, Sep. 23, 2009 10:36 am)
Matt Simmons, president of Capital Ale House, likes the 45-55 rule. He spends about $400,000 building the kitchens at his restaurants and taprooms. Easing the food requirements would allow competitors to enter the market with fewer costs, which he thinks would be an unfair advantage.
This is about big player restauraunts keeping the small guy out of the market place. What a joke. Plays right into the hands of big businness. Do we require auto dealers to make a certain amount off repairs? NO.
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