Pizza Today -March 2023 - 30

OPERATIONS
Adding
Alcohol
Pizzeria owners
that want to start
serving beer, wine
and spirits should
consider rules,
training and costs
By Nora Caley
F
or pizzeria owners, adding
alcohol to the menu can result in
a boost in revenue. The markup
on beer, wine and spirits is high, and
pouring a glass of chianti is much less
labor intensive than crafting pies. Still,
owners who want to start serving alcohol
need to consider certain issues, including
engaging with various government
agencies, training staff on more than
how to prepare cocktails, and calculating
whether the liquor license is worth the
cost.
To start serving alcohol, the first
thing the business owner must do is
obtain a license. " This will likely mean
reaching out to their state alcohol
beverage control division to learn
30 / PIZZATODAY.COM / MARCH 2023
about how to procure a license, " says
John Bodnovich, executive director of
American Beverage Licensees (ABL).
" Selling alcohol without a license is
illegal and would endanger a pizzeria
owner's legitimate business. "
The state liquor authorities have
slightly different names, such as
Division of Liquor Enforcement (Colorado),
State Liquor Authority (New
York), or Liquor Control Commission
(Illinois). The application asks for
certain details such as the restaurant's
state sales tax license number, liquor
licenses in other states, and whether the
applicant has been denied a previous
liquor license.
In addition to the state, operators
should also check with local governments
where the restaurant is located.
" In some states there are different rules
for every city or every county, " says
Michele L. Stumpe, a partner at the law
firm Taylor English Duma in Atlanta.
" There might be distance requirements,
such as restrictions if the location is
near a school, church or alcohol treatment
facility. " If the business owner
has more than one location, the rules
can vary, even if the two pizzerias are a
short distance away from each other.
The costs of the licenses vary widely
among states. There is an upfront cost,
and annual fees. The fees vary according
to several factors, including the type
of license, such as beer and wine, beer,
wine, liquor or even BYOB, which can
stand for Bring Your Own Bottle, Bring
Your Own Beer, or in Pennsylvania,
Bring Your Own Alcoholic Beverage.
While BYOB is often casually referred
to as " no license, " in California, an establishment
that allows people to bring
their own alcoholic beverages must
have a liquor license from the California
Department of Alcoholic Beverage
Control (ABC).
In some states, the restaurant owner
can apply for the liquor license and
get it in weeks, while other states take
months. The number of licenses available
varies from state to state, and in
some places, the licenses are sold on an
auction.
" Operators can sometimes overlook
the time it takes to get an alcohol
license, as well as the cost, "
Bodnovich says. " In some jurisdictions,
licenses are not unlimited, and securing
one may take patience and resources. "
He recommends doing some math to
figure out whether the benefit of selling
alcohol at the pizza business justifies the
cost of the license.
That math should take into consideration
which type of license to get,
because not all beverages pair well with
pizza. " Do an analysis of how beneficial
is it going to be, " says Stumpe, the attorney.
" For my pizza type clients, most
models are they find value in having
beer, and some find value in having
wine, but they do not find a whole lot of
value in having distilled spirits. "
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