Full-service liquor licenses may run out

While Utah liquor control officials delivered a cheery progress report Wednesday on a $30 million, seven-store expansion effort, forward movement on plans for restaurant entrepreneurs hoping to serve drinks at new establishments may have come to a grinding halt.

A dearth of new "full-service" licenses that allow restaurants to offer diners cocktail, wine and beer service could leave some new businesses high and dry.

The Utah Department of Alcoholic Beverage Control Commission issued 10 full-service restaurant licenses Wednesday, leaving only four licenses of that type available. The number of licenses made available is based on population-dependent quotas mandated by the Legislature.

The DABC's chairman, Sam Granato, said after the meeting Wednesday that state quotas on licenses for restaurants should be abolished.

"There shouldn't be a quota for people's dreams," Granato said. "I think if someone wants to go out and spend a half-million to four or five million dollars on a new business in the state, we shouldn't be limiting that."

DABC spokeswoman Sharon Mackay said there were already 5 or 6 full-service license applications on the agenda for the August commission meeting, and that number was likely to grow to 10 or more in the coming weeks — all of which will be in competition for the remaining state permits to offer full alcohol service to their new customers. Granato said the situation places the commission in the unenviable position of having to choose who is in and who is out.

"It puts a different aspect … and added emphasis on granting licenses requests," Granato said. "We have to be fair, and go on each individual applicant's qualifications … and unfortunately will only be able to issue the licenses that are available."

Mackay said that if the commission runs out of full-service licenses, a new business can apply for the limited service permit — of which there are currently 14 available — which allows for beer and wine service. If those get tapped out, there are still several dozen beer-only permits available.

Any changes to the current quotas would likely not be addressed until the next legislative general session, which will start next January. However, Senate President Michael Waddoups, R-Taylorsville, told the Deseret News last month that there was little appetite among legislators to increase quotas.

With the passage of sweeping alcohol reform legislation in the 2009 general session, the state eliminated private-club laws that mandated membership fees for customers of businesses whose primary income was based on alcohol sales. There are 14 of the new club licenses available.

e-mail: araymond@desnews.com