RICHMOND, Va. — Virginia lawmakers were briefed Tuesday on the state's law that regulates how much liquor restaurants can sell compared to how much food is sold. This is known as the "food-to-beverage ratio."
Under current Virginia law, restaurants that serve alcohol are required to make at least 45% of their total sales from food.
Potential changes to this law came close to passing earlier this year, and lawmakers on the Small Business Commission expect the issue to come up again in 2025.
The briefing was given by the Virginia Restaurant, Lodging, and Travel Association (VRLTA), which represents around 12,000 members.
The group says its members are split evenly on the issue.
Tommy Herbert, the Director of Government Affairs for the VRLTA, explained that larger restaurant chains tend to prefer the current law, while businesses near tourist attractions are pushing for changes.
"Think of bars at the beach where there is a great market for liquor sales, but perhaps there is not a great market for food sales," Herbert said. "Something that has very little to do with the business, more to do with the overall area."
One commission member, Danville Councilman Lee Vogler, said the law affects cities like his, especially those near North Carolina, where alcohol sales laws are more relaxed.
"We've watched money go into North Carolina from Danville for a long time. I mean, these places set up right outside the city," he said.
Herbert outlined several options lawmakers could consider:
1. Keep the current law.
2. Remove the ratio requirement if a restaurant meets a food sales target.
3. Lower the food-to-beverage ratio from 45%.
4. Eliminate the ratio entirely.
In 2024, a bill that combined options 2 and 3 almost passed.
Mac McCormack, owner of Big Whisky Grill, supported this change, arguing that his high-end drinks can make it hard to hit the food-to-beverage ratio.
"Potentially really nice restaurants can be put out of business simply because of Draconian laws," McCormack told CBS 6 in a March 2024 interview. "I mean, who cares how people spend their money?"
Watch: Virginia lawmakers reject effort to change state law regarding restaurant liquor sales (March 2024)
However, some, like Mike Byrne from the Virginia Restaurant Association, opposed the change, saying that restaurants have already invested in the current system.
"You could have a nightclub license, you can have other options available to you that solved the problem," Byrne said in a March 2024 interview. "To get rid of the ratio over 35 doesn't solve the problem at all."
Public safety concerns and the possibility of giving new competitors an unfair advantage are also part of the debate.
Delegate Josh Thomas (D-Prince William County) suggested reducing the ratio gradually over several years, which Herbert said could be a reasonable way to approach the issue.
"That would allow businesses time to adjust their models, time to acclimate to a new business environment where it regards liquor," Herbert said.
Another challenge to the law is a lawsuit currently underway.
Herbert mentioned that lawmakers typically avoid making changes to laws that are being challenged in court.
The state senator who carried the bill last year said he would not push for changes in 2025 due to the ongoing lawsuit.
As of Tuesday, no new legislation on the matter has been introduced.
What do you think Virginia should do about the food-to-beverage ratio? Email your thoughts to the CBS 6 Newsroom.
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