The failed bill to relax the state’s rules on food-to-liquor sales ratios sought to make it easier for restaurants to offer high-end spirits like Macallan Scotch Whiskey. (BizSense file)
The House of Delegates has opted not to take up legislation that sought to loosen regulations on the sales split between food and liquor at Virginia restaurants and bars.
Senate Bill 168 on Tuesday was sent back to a committee, rather than getting a vote for outright passage or denial. The move effectively killed the bill in this year’s session, as the deadline for committees to weigh and roll forward legislation ended the previous day.
The legislation would have lowered the current 45 percent food-to-liquor annual sales ratio that is required of businesses that hold mixed beverage restaurant, caterer’s or limited caterer’s ABC licenses.
The current ratio, a sore spot for establishments that sell liquor, requires those businesses to have at least 45 percent of their gross receipts come from food sales, leaving 55 percent of annual sales available to be filled out by liquor sales.
In a prepared statement, bill patron Sen. Bryce Reeves criticized Tuesday’s move by the House that essentially pulled the plug on the measure, which he said would have been a boon for the hospitality industry had it passed into law.
“It’s unfortunate that a pro-business, red-tape slashing bill died by process today rather than risking a vote and its potential passage,” Reeves said in his statement.
Reeves specifically blamed Tobacco Co. restaurant owner Jerry Cable and Virginia Restaurant Association lobbyist Matt Benka for the bill’s failure, saying they “used their money and connections to yet again control the restaurant industry and limit competition.”
The Virginia Restaurant Association opposed the bill’s passage, which Benka said would have opened the door to an undesirable influx of establishments serving alcohol in the Old Dominion.
“That bill if it passed would have turned Virginia into a bar-centric state,” Benka said. “We have been very good in Virginia about making sure (liquor sales occur) in a licensed restaurant with a menu.”
In addition to his belief that the bill would have undermined the business of existing restaurants, Cable said the bill would have increased the occurrence of drunk driving and stood to strain the resources of the ABC.
“This bill would put a bar on every corner and I don’t think that’s good for Virginia. The ABC board can’t possibly control that,” he said.
The bill passed unanimously in the Senate in late January before stalling this week in the House.
The latest version of the bill broadened the sales range at which restaurants would be subject to the proposed relaxed regulations.
Licensees with monthly food sales of at least $4,000 but less than $35,000 would have needed to meet or exceed a proposed 35 percent food-to-liquor sales ratio. Licensees with sales of at least $35,000 would not have been subject to the ratio.
The initial version of the bill had more narrow sales ranges, requiring licensees with a minimum of $4,000 and less than $10,000 in monthly food sales to meet the 35 percent ratio, and licensees with at least $10,000 to be exempt from the ratio retirement.
Reeves previously told BizSense the legislation was intended to make it easier for businesses to sell “high-end,” pricier spirits that are tougher to offer under the current ratio requirements. Beer and wine aren’t subject to food-to-beverage sales ratio requirements.
Had the bill become law, the legislation would have had mixed beverage restaurant licensees calculate their food-to-beverage ratio by dividing gross receipts from food and nonalcoholic drink sales by the gross receipts of those sales combined with liquor sales served on premises.
Mixed beverage caterer’s and limited caterer’s licensees would have determined their ratio by dividing gross receipts from food and nonalcoholic drinks served at an event by the gross receipts of spirits, food and nonalcoholic drink sales at the event.
Reeves’ office didn’t comment on whether the senator, who has sponsored previous legislative attempts to relax the ratio, plans to introduce a similar bill in the General Assembly next year.
The failed bill to relax the state’s rules on food-to-liquor sales ratios sought to make it easier for restaurants to offer high-end spirits like Macallan Scotch Whiskey. (BizSense file)
The House of Delegates has opted not to take up legislation that sought to loosen regulations on the sales split between food and liquor at Virginia restaurants and bars.
Senate Bill 168 on Tuesday was sent back to a committee, rather than getting a vote for outright passage or denial. The move effectively killed the bill in this year’s session, as the deadline for committees to weigh and roll forward legislation ended the previous day.
The legislation would have lowered the current 45 percent food-to-liquor annual sales ratio that is required of businesses that hold mixed beverage restaurant, caterer’s or limited caterer’s ABC licenses.
The current ratio, a sore spot for establishments that sell liquor, requires those businesses to have at least 45 percent of their gross receipts come from food sales, leaving 55 percent of annual sales available to be filled out by liquor sales.
In a prepared statement, bill patron Sen. Bryce Reeves criticized Tuesday’s move by the House that essentially pulled the plug on the measure, which he said would have been a boon for the hospitality industry had it passed into law.
“It’s unfortunate that a pro-business, red-tape slashing bill died by process today rather than risking a vote and its potential passage,” Reeves said in his statement.
Reeves specifically blamed Tobacco Co. restaurant owner Jerry Cable and Virginia Restaurant Association lobbyist Matt Benka for the bill’s failure, saying they “used their money and connections to yet again control the restaurant industry and limit competition.”
The Virginia Restaurant Association opposed the bill’s passage, which Benka said would have opened the door to an undesirable influx of establishments serving alcohol in the Old Dominion.
“That bill if it passed would have turned Virginia into a bar-centric state,” Benka said. “We have been very good in Virginia about making sure (liquor sales occur) in a licensed restaurant with a menu.”
In addition to his belief that the bill would have undermined the business of existing restaurants, Cable said the bill would have increased the occurrence of drunk driving and stood to strain the resources of the ABC.
“This bill would put a bar on every corner and I don’t think that’s good for Virginia. The ABC board can’t possibly control that,” he said.
The bill passed unanimously in the Senate in late January before stalling this week in the House.
The latest version of the bill broadened the sales range at which restaurants would be subject to the proposed relaxed regulations.
Licensees with monthly food sales of at least $4,000 but less than $35,000 would have needed to meet or exceed a proposed 35 percent food-to-liquor sales ratio. Licensees with sales of at least $35,000 would not have been subject to the ratio.
The initial version of the bill had more narrow sales ranges, requiring licensees with a minimum of $4,000 and less than $10,000 in monthly food sales to meet the 35 percent ratio, and licensees with at least $10,000 to be exempt from the ratio retirement.
Reeves previously told BizSense the legislation was intended to make it easier for businesses to sell “high-end,” pricier spirits that are tougher to offer under the current ratio requirements. Beer and wine aren’t subject to food-to-beverage sales ratio requirements.
Had the bill become law, the legislation would have had mixed beverage restaurant licensees calculate their food-to-beverage ratio by dividing gross receipts from food and nonalcoholic drink sales by the gross receipts of those sales combined with liquor sales served on premises.
Mixed beverage caterer’s and limited caterer’s licensees would have determined their ratio by dividing gross receipts from food and nonalcoholic drinks served at an event by the gross receipts of spirits, food and nonalcoholic drink sales at the event.
Reeves’ office didn’t comment on whether the senator, who has sponsored previous legislative attempts to relax the ratio, plans to introduce a similar bill in the General Assembly next year.
Anti business GA………
Reducing the food sales percentage will increase DUI’s? That claim defies logic and makes Reeves’ point.
Cables argument is that eliminating the food sales percentage altogether will increase the DUIs.
The Drunks I have dealt with seem to get drunk on there own and go trash the place. And most of them don’t even use booze anymore like in the good old days.
Okay, Jerry Cable, I’ll bite. If that’s the case then do we have data to support that theory? Can we look at any other states who might not have limits as stringent as Virginia and do those states have a higher number of incidents?
Your comment about data is spot on. There isn’t data
Plain and simple this is the good old boys controlling who gets in the business. It’s a pay to play. Follow the money on VPAP. The great thing is I will make Cable spend $ and Banka work the next 3 years because I’ll bring it back every year.
This is a example of Virginia being a nanny state that can’t treat people like adults. this to me is one of the dumbest laws out there. If someone wants a bar then they should be allowed to have a bar.