A community activist group says a proposed law that would lower the standard some restaurants have to meet to retain their liquor licenses would create “backdoor bars” and harm neighborhoods.
“What this bill does is create bars masquerading as restaurants,” Beverly Harvey, a member of Black Canyon CLOUT, said.
Under current law, a restaurant must make a minimum of 40-percent of its revenue from food, or face the loss of its liquor license. The legislation in question, H2621, would allow a limited number of restaurants who fail to meet that benchmark to apply for a new “grill license,” that would only require 30-percent of revenue be derived from food sales.
Currently, the bill contains language that would cap the number of grill licenses at 15 per year, though that provision expires after two years.
“In my mind,” says CLOUT member Diane Harris, “an establishment that sells 70-percent liquor and 30-percent food is a bar, not a restaurant.”
However, the bill’s sponsor, Rep. Michele Reagan, says decreasing the requirement on food sales is needed because alcohol prices — especially for trendy, imported alcohols — have risen dramatically in recent years.
“There was no such thing as a $300 bottle of wine at a restaurant a few years ago,” the District 8 Republican said. “This is more to help some of the high-end restaurants that have high-end alcohol.”
Ms. Harris says the rising alcohol costs shouldn’t matter.
“Restaurants that serve expensive liquor also serve expensive food,” she said.
Ms. Reagan also refutes the notion that lowering the standard by 10 percent makes the establishment a de facto bar.
“The bottom line is, you still need to sell 30-percent food,” she said. “That’s a heck of a lot of peanuts.”
Liquor licenses for bars are limited under state law. Currently there are 1,436 such licenses. Obtaining one for a new bar costs about $90,000. Restaurant liquor licenses cost about $2,500. The proposed grill license would cost about $30,000.
Profit, Ms. Harvey said, is the real motivation behind the bill, and the restaurants merely want to capitalize on the higher profit margin liquor sales provide.
“It’s a cheapie bar license,” she said.