Question from a reader:”I live in a city and state where there is separate license requirements for selling beer and wine versus liquor. Can you go into detail or touch on the reason for this? Thinking of opening a restaurant.”
My answer is that there are possible Federal licensing issues down the line and there is a lot more money to be made in mark-up for profit in liquor than in beer and wine. Beer and wine you can price yourself at the local supermarkets and compare the prices of that to other alcoholic beverages and you can get an idea of the mark-up that is involved. Check out the prices local bars have for sports events as well to see what is discounted. It generally isn’t the bottles of whiskey, is it?
Generally, beer and wine licenses can be issued without limit (check with your local laws and restrictions) where liquor licenses have to be bought from existing places or somewhere pre-existing. It usually takes an Act of God to try and get local agencies to issue a brand new license but if you have money, sometimes anything is possible and even exceptions to laws can be made if you are doing something to help a community (or the people who are running it).
As part of your due diligence in researching the type of business you are going to open, you may want to also check the local market to see if in fact it is a hard drinking crowd or if beer and wine is enough.
Also, see if what you are offering in your menu will compliment your choice of drinks and if you have enough room for a separate bar area. If you have the room, how much? Enough to book parties, shoot darts, play video games or just enough to handle a few people till they get seated for dinner?
Good luck with your venture and let us know how things work out!
Apr 28 2009 Mid Day
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Kim Isaac Greenblatt
Difference Between Beer Wine and Liquor License
Tags: Business
Many people aren’t aware that there is a difference between these two. You are doing a great service by pointing out the main differences. Thanks!
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If you have any business or tax questions let me know as well.
Kim Isaac Greenblatt