A bill intended to loosen the state’s food-to-liquor sales ratio law didn’t get a House committee hearing before the General Assembly wrapped up the 2025 session. (BizSense file)
The latest attempt to change the state’s food-to-liquor sales ratio law for bars and restaurants has failed to move forward yet again.
The General Assembly last week killed Senate Bill 1163, which had sought to lower the current food-to-liquor sales ratio imposed on the holders of mixed beverage restaurant, caterer’s and limited caterer’s ABC licenses.
Under the failed bill, those licensees would have been able to sell more spirits relative to food.
State law requires that the licensees have at least 45% of their gross receipts per year come from food sales, which leaves 55% of their annual sales to be filled out by liquor sales.
The latest version of SB 1163 would have required beverage restaurant, caterer’s, or limited caterer’s licensees with at least $4,000 in monthly food sales to meet an annual 30% food sales ratio.
The bill, which was tweaked while it worked through the Senate, also would have required restaurants to have at least as many seats at tables as they do at counters. It also called for mixed beverage licensees to stop liquor sales once food was no longer being served. The legislation, had it been enacted, would have had a sunset date of July 1, 2027.
Republican Sen. Ryan McDougle sponsored SB 1163. The original version of the bill pitched a framework in which licensees with at least $4,000 but less than $20,000 in monthly food sales would need to meet or exceed an annual 35% food sales ratio. Under the first proposal, licensees with monthly food sales of at least $20,000 wouldn’t have been subject to a sales ratio at all. Both of those aspects of the original pitch were removed by the time the Senate passed the legislation.
Virginia’s liquor sales law dates back decades, and has been a sore spot for some bars and restaurants over the years. Opponents of the law have argued that it is too difficult to abide by, and there have been past legislative attempts to change it.
Sales of beer and wine aren’t subject to a food-to-beverage sales ratio.
The bill passed 36-4 in the Senate earlier this month, and then was forwarded to a House of Delegates committee as a step toward a vote by the full House. The bill was effectively killed when the committee didn’t vote on it by last week’s deadline for committees to take action on the legislation before them. The General Assembly ended its 2025 session on Saturday.
A bill intended to loosen the state’s food-to-liquor sales ratio law didn’t get a House committee hearing before the General Assembly wrapped up the 2025 session. (BizSense file)
The latest attempt to change the state’s food-to-liquor sales ratio law for bars and restaurants has failed to move forward yet again.
The General Assembly last week killed Senate Bill 1163, which had sought to lower the current food-to-liquor sales ratio imposed on the holders of mixed beverage restaurant, caterer’s and limited caterer’s ABC licenses.
Under the failed bill, those licensees would have been able to sell more spirits relative to food.
State law requires that the licensees have at least 45% of their gross receipts per year come from food sales, which leaves 55% of their annual sales to be filled out by liquor sales.
The latest version of SB 1163 would have required beverage restaurant, caterer’s, or limited caterer’s licensees with at least $4,000 in monthly food sales to meet an annual 30% food sales ratio.
The bill, which was tweaked while it worked through the Senate, also would have required restaurants to have at least as many seats at tables as they do at counters. It also called for mixed beverage licensees to stop liquor sales once food was no longer being served. The legislation, had it been enacted, would have had a sunset date of July 1, 2027.
Republican Sen. Ryan McDougle sponsored SB 1163. The original version of the bill pitched a framework in which licensees with at least $4,000 but less than $20,000 in monthly food sales would need to meet or exceed an annual 35% food sales ratio. Under the first proposal, licensees with monthly food sales of at least $20,000 wouldn’t have been subject to a sales ratio at all. Both of those aspects of the original pitch were removed by the time the Senate passed the legislation.
Virginia’s liquor sales law dates back decades, and has been a sore spot for some bars and restaurants over the years. Opponents of the law have argued that it is too difficult to abide by, and there have been past legislative attempts to change it.
Sales of beer and wine aren’t subject to a food-to-beverage sales ratio.
The bill passed 36-4 in the Senate earlier this month, and then was forwarded to a House of Delegates committee as a step toward a vote by the full House. The bill was effectively killed when the committee didn’t vote on it by last week’s deadline for committees to take action on the legislation before them. The General Assembly ended its 2025 session on Saturday.
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If you’re drinking Macallan 25 whisky by the bottle, you’re doing a number on that establishment’s receipt ratio.
This law has been holding Virginia’s hospitality and entertainment industry back for decades.
This ratio is just complete over-regulation of restaurants. It’s a totally unnecessary requirement that benefits no one. This state is really focused on maintaining archaic rules that hinder business owners and the general public
I want this law abolished completely and I don’t even drink anymore. It’s crazy what hoops we make restaurants go through given how hotels with restaurants don’t have the same requirements. This law holds us back on having more vibrant nightlife, too, which doesn’t help us retain young people.
The fact that this iteration of the bill had liquor sales stop at the same time as food sales was going backwards. Why can’t we get this right?
too bad, the ratio should be lowered. It helps increase the diversity of local businesses
Passed by the Senate 34-6, and then killed by a House of Delegates committee “no vote?” Something is completely rotten with Virginia’s elected government…
Yes and that’s why we need major campaign finance reform in Virginia (and nationally). Right now the members of the General Assembly can take enormous sums of money from special interests while they work “part time” when they should be full-time and have major restrictions on campaign contributions.
While reading this story I actually found myself wondering who is lobbying against the change and who benefits from the current system? Do you have any idea? Of course, I probably won’t be able to read your response seeing as how I’ll be locked out of this article by tomorrow morning, but maybe I’ll get lucky!