A Food Fight Over Virginia Liquor Laws: New at Reason

It’s time for Virginia’s restrictive regulation of alcohol sales to go.

A. Barton Hinkle write:

For decades, Virginia has forced bars and restaurants in the commonwealth to jump through a costly and pointless hoop. It’s time to give them a break.

The antiquated rule requires establishments to make up at least 45 percent of their revenue from food and nonalcoholic beverages. On top of that, they have to bring in at least $4,000 a month in food sales, and half of that must be from “substantial entrées.”

Restaurateurs (along with caterers and private clubs) have not been happy with these requirements—and shouldn’t be. The rules impose a huge paperwork burden. Every year the establishments have to submit a Mixed Beverage Annual Review to the state proving they’re in compliance. They also have to submit an inventory list of all the booze they have on hand at the end of the year.

This is irksome enough. But now restaurants are feeling squeezed and discriminated against. The rise of microbreweries and brew pubs has introduced another competitor class to the marketplace. Recently Virginia Beach exempted craft breweries from the food-ratio rule.

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