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Preston Simasingh Professor Sarah Orme English 2010-049 06 December 2013 Limiting Restaurant Liquor Licenses: An Economic Detriment Despite Utahs conservative drinking laws, data shows alcohol consumption has increased 33% since 2006. (Annual Reports) While this fact may be disconcerting, alcoholrelated deaths have declined and underage drinking remains significantly below the nations average. (House) Utah is one of eighteen alcohol-control states, creating the Department of Alcohol and Beverage Control (DABC) to regulate all outlets of alcohol. Although the DABCs efforts to keep alcohol out of the hands of minors and avoid overconsumption has been notably impressive, the department has been reluctant to meet the demand for additional liquor licenses for restaurants, businesses that contribute to economic development.

Created in 1935 by the Utah State Legislature, the Department of Alcohol and Beverage Control (DABC) was intended to address alcohol consumption. To date, its purpose remains the same: conduct, license and regulate the sale of alcohol beverages in a manner that reasonably satisfies public demand while protecting the public interest. The purpose of control is to make liquor available to those adults who choose to drink responsibly - but not to promote the sale of liquor. (Origin and Purpose) As the quote indicates, it appears the DABC is still stuck in 1935. The methods they use to determine quotas for liquor licenses are as outdated as their mission statement. Population, dedicated alcohol law enforcement personnel and license types determine numbers. (Utah Legislature) Unfortunately, these metrics do not account for world globalization.

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An important factor that should also be considered is the millions of visitors traveling to Utah. In 2012, an estimated 23.5 million visitors came to the state for events like The Sundance Film Festival, the Outdoor Retailers Expo and Rotary International, and to enjoy Utahs beautiful scenery in Moab, Park City, and Saint George. These two industries are major economic powerhouses. "Visitors to the state contributed $960 million in state and local taxes last year," said Spencer Eccles, executive director of the Governor's Office of Economic Development (GOED). "This new capital infusion is used to fund education, build roads and improve the quality of life for every resident." (Sullivan) In addition, the revenue generated from the sale of alcohol and its taxes fund school lunches and alcohol education programs, and contribute to a fund reserved to support the state governments operation.(Wimmer) If what the GOED says is correct, then Utahs liquor regulations are in direct opposition to these clear benefits. Utah restaurants struggle to accommodate visitors whom have different cultural drinking customs. For example, a licensee must retain a 70% food-to-alcohol sale ratio. They must follow regulations like the intent to dine law, food with alcohol requirement and a barrier to block the view of mixing alcoholic beverages. Restaurant owners constantly face the balancing of complex regulations while meeting the social expectations visitors expect from such a business. The only way an infusion of capital can help the stateis to unshackle businesses responsible for generating income from such restrictive--and ridiculous--limitations. Strictly limiting licenses is an economic detriment, pushing businesses away from developing in Utah. Many out-of-state restaurant chains are wary of expanding into Utah with the fear of not obtaining a liquor license for their restaurants. Numerous complaints from restaurant owners have been reported in regard to license shortages in the industry. The waiting

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period is close to two years, putting various restaurant constructions on pause. (House) Clearly, the DABCs approach to controlling liquor is a negative economic impact. Perhaps recognizing this on some level, the DABC addressed the shortage by creating a master license. This updated regulation allows for a licensee to combine multiple individual licenses under one, freeing their existing licensesfor other businesses. While this may sound like a positive move in the right direction, a closer look says otherwise. For the business owner, an incentive does not exist to combine the licenses. The fee for a master license is $10,000 for a full restaurant and $5,000 dollars for a limited restaurant license. This cost is in addition to the fee an owner must pay for each individual license. Essentially, the so-called reform may not actually be economically viable for chains. (Peterson) With the demographics of Utah changing and as the state continues to welcome more and more visitors, drinking is integrating into the dining experience. However, The DABC has shown great effort to resist this change, attempting to keep restaurants from becoming bars. Melva Sine, president of the Utah Restaurant Association, said she's glad lawmakers are spending so much time talking about restaurants, but they, along with clubs and bars, serve only three to five percent of the alcohol consumed in the state. You go to a bar to drink. You go to a restaurant to eat. A restaurant will never have that bar feel. She believes the restaurant industry isn't the one the state should look to- to solve problems with underage drinking and DUIs. (Romboy) The DABC needs to reevaluate their solution to providing additional liquor licenses; the demands of visitors should be equated into the licensing quota, the relationships that exist between alcohol and tourism, and the additional revenue to education and government. Issuing

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additional licenses to restaurant owners would not only help accommodate the cultural change in dining, but would also unlock avenues leading to economic incentives and development.

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Works Cited House, Dawn. Utah Alcohol-Related Deaths Down Salt Lake Tribune. Web. 07 Oct. 2013. ---Businesses battle Utahs Liquor License Bottleneck Salt Lake Tribune. Web 04 Dec. 2013 Peterson, Eric. Liquor Laws Update: Politicos Gear Up For 2014 Legislature CityWeekly 14 Aug. 2013. Web. 07 Oct. 2013. Romboy, Dennis. Leaders Debate Reality, Perception of Utah Liquor Laws Deseret News. 04 Aug. 2013. Web 07 Oct. 2013. Sullivan, Michael. Utah Office of Tourism Releases 2012 Tourism Numbers Governor's Office of Economic Development. 2012. Web. 07 Oct. 2013. Utah Department of Alcoholic Beverage Control. 2007 72nd Annual Report. Web. 07 Oct. 2013. ---2008 73rd Annual Report. Web. 07 Oct. 2013. --- 2009 74th Annual Report. Web. 07 Oct. 2013. --- 2010 75th Annual Report. Web. 07 Oct. 2013. --- 2011 76th Annual Report. Web. 07 Oct. 2013. --- 2012 77th Annual Report. Web. 07 Oct. 2013. --- 2013 78th Annual Report. Web. 07 Oct. 2013.

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---Origin and Purpose. DABC. Web. 07 Oct. 2013 Utah Legislature. Restrictions on number of retail licenses that may be issued -Determining population Exempt licenses. Utah Legislature Title 32B Chapter 1 Section 201 Web. 10 Oct. 2013. Wimmer, Nadine. Budget breakdown: How Education Money is Spent in Utah Schools KSL. 11 Apr. 2013. Web. 07 Oct. 2013.