Year In Review & Alcohol Predictions For 2023

We had a question and answer session with Dan Newcomb of Liquor License Advisor about the year that’s past and what’s to come for the liquor license industry in 2023.

What was the most common question you got from liquor store owners in 2022? What about restaurant owners?

Over the course of 2022, the most common question that has been a theme amongst liquor store owners is how to maximize the sale price of their store, having sales trending downward since the pandemic. Potential buyers have been requesting 2022 sales because they feel like they reflect earnings before COVID. Since the pandemic, owners have been trying to rejuvenate their business model to stay competitive, and now, with the challenging economy, owners are once again feeling the sense of unsettlement that they had hoped was over. Our team has the knowledge and understanding of the industry, especially during these times, to ensure our clients receive the maximum return on their investment. From start to finish, we help our clients with financial positioning, identifying key team members (attorneys, accountants, etc.), marketing, finding the right buyer, and closing out the sale.

To read the full article – check out The Advisor Magazine – Issue 22.

 

What Are Consumers Gifting For Alcohol In 2022?

The holiday season is upon us, and it is time to think about what beverages to stock up on and showcase at your store to make gift-giving seamless for your customers. Whether the gift is for a party host, co-worker, friend, or family, we’ve been paying attention to the most popular trends, and here’s what you need to know in order to stay competitive this season.

BevAlcInsights by Drizly forecasted this season’s top alcohol gifts based on 2022 sales and gifting trends in their recent article, “2022 Holiday Gift Guide for Retailers”. The report encourages retailers to stock up on luxury beverages such as champagne, premium red wine, and high-end spirits.

Based on Drizly’s 16% increase in the average unit price of gift orders from 2021 to 2022, Drizly’s head of consumer insights, Liz Paquette, anticipates that consumers will spend even more this year. Forbes reported on the increase of luxury beverage sales in their recent article, “Drinkers Continue To Spend As Sales Of Luxury Booze Grows 23%. But Is It The Category Recession Proof?”. The answer, for the foreseeable future, is yes, as luxury spirits continue to thrive, the most noteworthy being tequila and American whiskey.

This data comes as no surprise since the holiday spirit boosts consumers’ tendency to splurge when purchasing special gifts, but it is also important to recognize diverse budgets in order to maximize consumer sales.

To read the full article – check out The Advisor Magazine – Issue 22.

 

Small Retailers and Package Stores Need Your Support On Question #3

In our latest Advisor Magazine, we included a campaign ad produced by the 21st Century Alcohol Retail Reform Committee outlining why you should vote yes on question #3. The video explains that locally owned package stores, independent markets and convenience stores initiated the ballot question. Not only will voting yes help save Massachusetts small retailers and package stores, but it will support consumer convenience, public safety, and tourism. 

Visit https://www.yeson3mass.com/ for more information on how you can support this campaign!

To read the full article – check out The Advisor Magazine – Issue 21.

 

The Advisor Magazine: Issue #21 –

As the November 8th election approaches this week, the division on the issue of retail distribution grows.
Tell everyone you know to support local and independent operators by voting YES on Question 3.
In Issue #21 of The Advisor we discuss:
  • The ‘Milestone Moment’ for the liquor industry;
    • How to support the unsung heroes of the service industry;
    • What to stock your shelves with for the holidays;
    • Employee Retention Tax Credit Fast Program for owners;
    • and more!
In this issue, we push the hot buttons of today’s liquor industry.
Click Here To Read The Advisor – Issue #21.

Why Vote YES on Question 3

According to the 21st Century Alcohol Retail Reform Committee, voting YES on Question #3 will allow for the safe and convenient expansion of alcohol sales. Question #3 will:

1. Promote Consumer Convenience 

Progressively increase the number of allowed beer and wine licenses from 9 to 18, minus any full liquor licenses owned. The number of full liquor licenses will be set at 7.

2. Promote Public Safety

Prohibit self-checkout of alcohol and change the fine for selling to a minor applicable to gross sales rather than just for alcohol.

3. Promote Tourism

Allowing valid out-of-state IDs to be relied upon by a retailer will increase access to alcohol in a reasonable and responsible way.

There are many ways you can help promote the Vote YES campaign, including making a donation to the “21st Century Alcohol Retail Reform Committee”; adding the “Vote Yes on 3” logo to the end of your email signature, your store newsletters, and/or website (by copying & pasting the logo); placing “Vote Yes on 3” signs in your store’s window, etc.

To learn more about what you can do to support this campaign, please visit:

https://www.masspack.org/Ballot-Initiative

To read the full article – check out The Advisor Magazine – Issue 20.

 

 

Time To Spread The Work – Ballot Question Update

Saving The 3 Tier Alcohol System

A highly anticipated debate in Massachusetts is preparing to finalize a decision on November 8, 2022, after votes are made on ballot question #3.

Ballot question #3 concerns off-premise alcoholic beverage retailers and the number of licenses that an entity is allowed to hold. Voting YES will allow entities to ultimately hold eighteen beer and wine licenses, an increase from the nine currently allowed. (This increase will be gradual.) Voting YES will also decrease the number of full liquor licenses from nine to seven. Ultimately, a YES vote will help restore balance in the off-premise retail industry.

 

Voting YES on ballot question #3 will not only support consumer demand and promote equal opportunity for all retailers, but it will also help save local businesses by preventing big corporations from dominating the market. Voting YES will further assist local businesses and better public safety by prohibiting self-checkout of alcoholic beverages and establishing a fine for selling to a minor applicable to the total amount of purchases, rather than just for the alcohol purchased.

Voting YES will aid in expanding tourism and increasing the customer base in Massachusetts to allow retailers to accept out-of-state IDs, as we are currently the only state that does not force retailers to reasonably rely on valid out-of-state IDs.

Liquor License Advisor encourages you to vote YES to not only support local business but also to increase the demand for your license, as well as increase the return on your investment over time. We support our clients and business models that we’ve helped establish over the years, and it’s important to us that you are successful. Reach out to us any time with questions. We’re here for you.

To read the full article – check out The Advisor Magazine – Issue 19.

 

 

The Advisor Magazine: Issue #20 –

About a month to go before the historic vote on question #3 for the liquor license industry – vote YES. Tell your friends and family to support local and independent operators.

In Issue #20 of The Advisor we discuss:
In this issue, we discuss the future of the industry.
Click Here To Read The Advisor – Issue #20.

The Advisor Magazine: Issue #19 –

Holding on to Summer and preserving the 3 tier alcohol system. Not sure what the opposition was expecting but The 21st Century Alcohol Reform Bill is going strong.

In Issue #19 of The Advisor we discuss:
In this issue, we take a look at the direction the industry is heading nearing the final quarter of the year.
Click Here To Read The Advisor – Issue #19.

Restaurant’s Pandemic Adjustments

What’s Here To Stay For The Industry

An article posted in early July on rebusinessonline.com entitled “Retail, Restaurant Industries Embrace Post-Pandemic Design Shifts” addresses the post-pandemic shifts in consumer behavior, as the ease of ordering online with multiple pickup and/or delivery options has become the norm over the past few years. Although the pandemic is behind us, the behaviors consumers adopted are not, and consumer behaviors and expectations when it comes to shopping, dining, and drinking have changed, and businesses are paying attention. Let’s take a closer look at how restaurants are adapting.

The article identifies Border Foods, one of the largest privately held Taco Bell franchises in America, as one restaurant that has worked to create a new restaurant concept designed around the established fast-food model – but an elevated experience, with two-stories and four drive-thru lanes. Josh Hanson, founder and CEO at Vertical Works and WORKSHOP (the company behind the Border Foods redesign), states that their goal was to offer a “highly personalized customer experience” and that “the pandemic accelerated this expectation, as retailers were forced to connect with consumers in new ways.”

To read the full article – check out The Advisor Magazine – Issue 18.

 

 

Time For Nine

Grandfathering Off Premise Licenses

November 8, 2022 is a date that all liquor store owners should have circled on their calendar as a lot rides on the outcome of a proposed ballot question for 21st Century Alcohol Reform bill.

Most recently, more than 19,000 signatures from the public were filed in support of the reform, which over time would gradually increase the current number of licenses available to a single retailer from 9 to 18 by 2031.

Why is the number 9 so important?

As previously mentioned in Retail Tier Reform: Looming 21st Century Alcohol Changes in Issue #17 of The Advisor, the license cap for the sale of all alcoholic beverages (beer, wine, and liquor under the same license) would be reduced from 9 to 7. Retailers will be allowed more licenses overall; however, the cap for all alcoholic licenses will be lower.

For retailers who are currently near or wanting to capture the 9 license limit, they will have to pick up licenses quickly and start now.

With the cap increasing and the quota remaining the same, simple economics of supply and demand suggest that anyone who has a controlling interest in multiple stores, specifically those with all alcoholic licenses will greatly benefit.

For successful retail owners with great ambitions of increasing their capacity, this is not a time to “wait and see”. Your climb to nine licenses has to start now while there’s still time to get them under agreement.

Waiting around on the sidelines to see what happens won’t work and in fact will be too late. If you need a plan, we’re here for you. Call us any time at 781-319-9800.

To read the full article – check out The Advisor Magazine – Issue 18.

 

 

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