The Advisor - Issue #28 : simplebooklet.com

CEO s Note Summer sips and trips Page 3 Food Stores May Have Unlimited Beer Wine Licenses With Proposal As we approach what is typically one of the busiest seasons in the alcohol industry it s about to get interesting When the weather warms up the celebrations make their way outdoors Whether it be a backyard barbecue dinner on the patio or on a beach somewhere there s sure to be liquor flowing For restaurant owners in Boston the city has issued an advisory and also approved additional licenses to specific zip codes which will bring new challenges for existing owners For liquor store owners the threat of unlimited licenses for food stores looms once again among other issues Page 4 Continuing Concerns For On Premise Page 6 Sparkling Wine Ready To Drink Are Ready For Summer Page 8 City of Boston Bottle Service Advisory Issued We discuss this and more in June As always we re here to provide you with support on how to navigate these challenges Sincerely Liquor License Advisor has been a trusted resource in the liquor store and license industry since 2002 DAN NEWCOMB Founder CEO Liquor License Advisor THE ADVISOR MAGAZINE 2 www LiquorLicenseAdvisor com

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Food Stores May Soon Have Unlimited Beer Wine Licenses With New Proposal by Dan Newcomb Another recent twist on altering the alcohol industry s laws is threatening business for already struggling liquor store owners here in Massachusetts A May 16 article featured in The Eagle Tribune announced that a proposal heard on Monday May 15 by the Legislature s Committee on Consumer Protection and Professional Licensure would create a new kind of beer and wine license for food stores and give cities and towns authority to decide how many to issue to local supermarkets and convenience stores What could this change mean for package store owners This new type of license would be unlimited creating more competition for local package stores that are already competing with the big chains and their discounted prices Executive director of the Massachusetts Package Store Association Rob Mellion expressed the overall concern with this new license by claiming that it would create a monopoly in the state by selling beer and wine at discounted prices and that local business owners would suffer due to mostly outof state corporate interests seeking marketplace domination by means of deregulation This new type of license is supported by organizations such as the New England Convenience Store Energy Marketers Association and Cumberland Farms claiming that there is a lack of licenses in the marketplace THE ADVISOR MAGAZINE 3 Currently in Mass supermarkets can apply for beer and wine licenses but a single company is limited to nine licenses The new proposal would allow unlimited beer and wine licenses which grants local authority for discretion to decide what s right for their cities when it comes to how many licenses they might grant and to whom according to Matt Durand senior counsel for Cumberland Farms Despite these organizations forging ahead with this proposal they have also expressed their understanding of current owners concerns ensuring that there will be safeguards in place for local mom and pop package stores if the new license type is created including a surcharge for beer and wine licenses under the new licensing system as well as the allowance of only wine and beer sales not liquor The details surrounding the surcharge were not presented in this article however making it difficult to determine just how helpful it would be to current operators If you are a current package store owner who is already feeling the impact of chain expansion the rising costs of doing business and a struggling economy give us a call to understand if selling your store might be right for you We have a network of qualified buyers at our fingertips We re here for you www LiquorLicenseAdvisor com

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Continuing Concerns For On Premise Will Restaurant Service Charges Ultimately Help or Hurt the Restaurant Industry by Michelle Hansford If you have recently dined out at a restaurant you may have noticed an extra fee included in your bill This service charge which has been adopted by more and more eating establishments over the past several years is meant to assist restaurants with the number of challenges they have faced since Covid It is well known that restaurants took a big hit during the pandemic that has led to yet even more challenges including a struggling economy inflation and labor shortages A May 16 2023 Boston com article titled The restaurant service charge isn t going anywhere explains how different restaurant owners are utilizing these service charges some of the confusion surrounding it and if this extra fee coming out of diners already strapped budgets will deter them from supporting the already strapped restaurant industry According to the Boston com article Brian Pollock an employment lawyer in Miami explains that For restaurants these service charges offer some flexibility Gratuities are tightly regulated by law and can be distributed only to tipped workers A service charge belongs to the employer who can choose how to spend it THE ADVISOR MAGAZINE 4 Many restaurants are utilizing this service charge to compensate for the rising costs of food while other restaurants are relying less on a tipping structure and are distributing the service charge money amongst employees With the cost of doing business extraordinarily high and food service employees working harder than ever in short staffed restaurants there is no shortage of ways that this money can be used However just as restaurants are struggling the average American consumer is as well also facing high cost of living and cutting back wherever possible Patrons may see this service charge as one more reason to not dine out as frequently which may backfire for restaurant owners implementing it Would customers rather see an increase on menu items Do they feel as though the service charge is a less upfront way of charging more Because it appears that patrons are confused by this charge unsure of whether it is included gratuity or if they should leave an additional tip or what exactly it is used for Continued on next page

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Continuing Concerns For On Premise (Continued)THE ADVISOR MAGAZINE  | 5www.LiquorLicenseAdvisor.comTo confuse matters even more, these charges, whichcan run up to 22% or more, vary from restaurant torestaurant, leaving customers wondering whatexactly it is they are paying for, and why.Some owners have commented that patrons do notwant to pay more for food, so they are not increasingtheir menu prices but rather adding this chargeinstead.As more restaurants adopt this service charge andcustomers are paying closer attention to their billsand where their money is going, in the end, will thisservice charge be more of a help or hindrance? Will consumers cut back even more because of thischarge, therefore reducing business for restaurants?

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THE ADVISOR MAGAZINE  | 6For both on and off-premise owners, the summermonths present a great opportunity to profit fromwhat’s trending with your customers, especially astighter budgets may lead to ultra-selectiveconsumers this season. The liquor industry, whichis known to be virtually “recession proof”, remainsa way for people to relax, enjoy themselves, andsocialize with friends without necessarilyextending their budgets too far. Travel can beexpensive, while hitting up your local liquor storefor a bottle of your favorite wine or a 6-pack ofbeer, or meeting friends out for a drink and anappetizer or meal, remain affordable options forthose looking to enjoy themselves but in aconservative fashion. We’re taking some of theguesswork out for owners and operators who arestocking up for the season of cookouts, parties,firepits, and beach days; and more free time anddaylight to dine and drink out with friends andfamily, enjoying on premise patios and decks onceagain. Here’s a few items you most definitely wantto include in your inventory lineup this summer.Move over white wine: it appears that wineenthusiasts, who typically trade out their favoritereds for crisp, cold, refreshing white varietals duringthe hotter summer months, are ditching thetraditional varietals and are instead reaching forsparkling options, with white sparkling leading thepack, followed by pink and red sparkling. A May 22,2023 CGA report titled “Sparkling Wine’s sharegrowth continues in the US On Premise” shares sometelling data:“Over the past year, White Sparkling wine accounts forthe largest share of total sparkling wine category(84.4%) [and] while Pink varietals of sparkling winehave seen a decline in value growth (-4.8%) over thesame period, it remains the second biggestshareholder of total sparkling wine category (12.2%)[while] Assorted and Red sparkling wine alsoexperienced growth in terms of value (+28.7%) overthe latest period, while holding a much smaller shareof the total sparkling wine category, meaning it shouldbe a focus for wine suppliers and venues across theUS On Premise”.S P A R K L I N G W I N E A N D R E A D Y - T O - D R I N KS P A R K L I N G W I N E A N D R E A D Y - T O - D R I N KA R E R E A D Y F O R S U M M E R !A R E R E A D Y F O R S U M M E R !BY MICHELLE HANSFORD

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Sparkling Wine Ready To Drink Are Ready For Summer Continued by Michelle Hansford Therefore stocking up on the more typical white and pink sparkling options is a smart bet and while sparkling is trending offering red sparkling options may tempt even the most loyal red wine drinkers The report also delves into the countries from where the most popular sparkling wines come with French Italian and Spanish varietals topping the list Champagne Prosecco and Cava anyone Italian sparkling wines are experiencing huge sales growth within the category so be sure to offer your customers plenty of Italian options The other big contender for the summer sipping spotlight is the immensely popular RTD cocktail and the ever expanding brands and varieties that are emerging from this trend BevAlc Insights by Drizly just released their 2023 RTD Cocktail Forecast showcasing the popularity of RTD cocktails and their continued growth which started during the pandemic They are portable require no preparation or cleanup contain controlled ABVs and are being produced with much higher quality ingredients than earlier versions which were mostly malt based and full of artificial flavors and colors making them a perfect option for the laidback summer vibe So which brands is Drizly selling the most of Here are the top selling RTD brands 2023 to date 1 High Noon 2 Cutwater Spirits 3 On The Rocks 4 Jose Cuervo 5 Buzzballz THE ADVISOR MAGAZINE 7 6 1800 Tequila 7 The Long Drink Company 8 N TRL 9 Monaco 10 Beatbox Beverages The report identifies younger consumers and women as purchasing more RTD cocktails than other consumers and states that although the category remains popular year round it s especially important for retailers to have their stock of RTDs ready going into the warmer months Over the past 12 months the top months for RTD sales on Drizly were July June and August The season of celebrations is upon us so be sure to set your business up for success and offer customers what they are sipping this summer www LiquorLicenseAdvisor com

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T H E C I T Y O F B O S T O NT H E C I T Y O F B O S T O N B O T T L E S E R V I C E A D V I S O R Y I S S U E DB O T T L E S E R V I C E A D V I S O R Y I S S U E DBY MICHELL E HANSFORDOn May 18, 2023, The City ofBoston’s Licensing Board releasedan advisory regarding the rulesrelating to “bottle service”, as it hasbeen brought to their attention thatsome on-premise establishmentsare advertising and offering thisservice without permission fromthe Licensing Board. On-premiselocations can offer the sale of fullbottles of liquor, referred to as“bottle service”, only with Boardapproval of the establishment’splan and strict adherence to therules surrounding this privilege.The advisory put forth by the Boardstates that:1. Any licensee wishing to providebottle service on their licensedpremise must obtain writtenpermission from the Board prior tooffering the service. This will requirea hearing before the Board.4. If approved, Licensees must ensurethat bottles are never left unattendedor under the direct control of patrons. 5. Licensees approved for bottleservice must ensure they do not servealcohol to intoxicated patrons,regardless of whether they have paidfor bottle service. Licensees are reminded that it is aviolation of state and localregulations to deliver more than two(2) alcoholic drinks to any patron atone time. Licensees approved forbottle service must continue toobserve all other laws regarding thesale and service of alcohol, and allrules and regulations of the Boardand the ABCC.If you are an on-premise ownercurrently offering bottle service in theCity of Boston, ensure that you haveapproval from the Licensing Boardand that you are strictly following therequirements to avoid repercussions,including suspension or evenrevocation of your liquor license.THE ADVISOR MAGAZINE  | 8How the licensed premise willbe adequately staffed to providebottle serviceHow the licensee will ensurethat bottles are monitored at alltimesThe total number of tables thatwill be offered bottle service atany given time2. Licensees offering bottle servicewithout Board approval may besubject to disciplinary action by theBoard, up to and including thesuspension or revocation of anylicense issued by the Board. 3. Approval will only be granted insituations where the licenseesubmits a plan illustrating that theproposed bottle service conforms tothe Rules and Regulations of theBoard and the ABCC. This planshould address, at a minimum, thefollowing:

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IN HIGH DEMAND STORE OWNERS We have a number of highly qualified buyers looking for wellrun stores in specific locations LIQUOR STORES WANTED CONTACT US NOW Call text 617 648 5558 Email team llausa com Since the pandemic a specific store type and location have been in high demand Liquor stores doing close to or over 1 million in sales that are well run and in prime locations include but are not limited to CAPE COD SOUTH SHORE MIDDLESEX COUNTY If this sounds like your store or you ve been considering selling and want to know what your options are it s time for a confidential conversation WE RE HERE FOR YOU

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YOUR TRUSTED INDUSTRY PARTNERDid you know that for over 2 decades, our Founder, Dan Newcomb, hasbeen in the liquor license industry as the "go-to" for other industryprofessionals and leaders? Every phone call that comes into our office is about a liquor license. Wedon't work in any other industry besides liquor stores and licenses.We provide owners with a "firewall" to protect them from all of the pitfallswe know are out there throughout a transaction because we know how toprepare the deal and navigate the waters. We're here for you.Meet Our TeamDan NewcombCEO & FounderBen JerromBuyer SpecialistJennifer MedicoTransaction SpecialistGlenn LawlerSeller SpecialistMichelle HansfordSeller ConciergeSherri BeauchampMarketing SpecialistQuestions?Call 617.648.5558 orvisit: LiquorLicenseAdvisor.comKate NewcombProject Specialist

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References:© Liquor License Advisor 2023, All Rights Reserved Unless Otherwise NotedSpecial Contributions & Acknowledgements:- Features Editor & Editorial Assistant: Michelle Hansford & Kate Newcomb;- Magazine & Digital Editor: Sherri Beauchamp.THE ADVISOR MAGAZINE  | 11Continuing Concerns for the On Premise: Will Restaurant Service Charges Ultimately Help or Hurtthe Restaurant Industry? (Page 4)1 – The restaurant service charge isn’t going anywhere by Priya Krishna, New York Times Service published onBoston.com May 16, 2023. (https://www.boston.com/food/restaurants/2023/05/16/the-restaurant-service-charge-isnt-going-anywhere/)1 – Sparkling Wine’s share growth continues in the US On Premise, CGA Strategy (https://cgastrategy.com/sparkling-wines-share-growth-continues/)2 - BevAlc Insights' 2023 RTD Cocktail Forecast (https://bevalcinsights.com/bevalc-insights-2023-rtd-cocktail-forecast/)Sparkling Wine & Ready-To-Drink Are Ready For Summer (Page 6)The City of Boston Bottle Service Advisory Issued (Page 8)1 – City of Boston Mayor Michelle Wu Licensing Board Advisory dated May 18, 2023(https://docs.google.com/document/d/1bvbKyNW3buO-VY7cUsbEEfLsI7cbCM0nSHrH9U7YMvM/edit?usp=sharing) Food Store May Soon Have Unlimited Beer And Wine Licenses With Proposal (Page 3)1 – Bill to expand wine, beer licenses opposed by 'packies' by Christian M. Wade, Statehouse Reporter published onTheEagle Tribune dated May 16, 2023. (https://www.boston.com/food/restaurants/2023/05/16/the-restaurant-service-charge-isnt-going-anywhere/)

The Advisor - Issue #28

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