Industry Spotlight: Ben Jerrom Advises Buyers How To Get The Upper Hand

Ben Jerrom, Liquor License Advisor Partner & Buyer Specialist

In April of 2018, Liquor License Advisor welcomed Ben Jerrom as a Partner and Buyer Specialist.

Jerrom learned to navigate legalese and politics early in his career after interning at the Massachusetts State Senate, working for a local Boston attorney, doing some liquor license lobbying and working in New York City at Baker & McKenzie LLP.

Jerrom admits those experiences have helped him transition nicely into the liquor license and liquor store industry as he has mastered how to communicate effectively with very high-powered, high-operating professionals.

At Liquor License Advisor, Jerrom works closely matching Buyers with stores and licenses that suit their capacity – he gives them the greatest chance of success by working closely throughout the deal with all key stakeholders involved.

 

Here’s the Q&A with our own Client Concierge, Michelle Hansford, who took to interviewing Jerrom.

Where do you spend your time outside of the office?

I love the outdoors in all sorts of different ways. It’s not limited to the mountains, or flatlands, or the ocean. I love doing outdoor activities. I try to get my dog off-leash somewhere at least every other day. I go out on my boat, both with my wife and alone, and I love to hike and camp and go fishing. I do love video games, as a typical millennial boy, and I like to read a lot of news, as political stuff is what I went to school for and I do enjoy educating myself on it a lot.

 

What’s your favourite part of a transaction for a buyer deal?

My favourite part is when a buyer is clear about what he wants and the pre-offer phase. There’s this dopamine rush when you know you have someone really close and they’re excited about a store and there’s all of this opportunity rushing in– and none of the hurdles have gotten in the way yet. Being able to guide them and make them comfortable for the rest of the way is definitely my favourite part.

 

Would you say that you have a process that you guide buyers through?

Yeah, usually the buyer finds a store through Biz Buy Sell, our website, or an email blast, so step one is calling me. Step two is receiving the basic level information about the store and them checking out the store. Step three is the most crucial stage which is getting them enough information for them to feel comfortable enough to make an offer. You don’t want to flood them with too much information during that first call; you want a certain level of excitement and emotional investment so there’s positive buildup before you get into the nitty gritty of everything.

 

What’s your advice for prepping buyers?

I think this question has to do with the level of experience a buyer has. A first or second time buyer should have all of their finances in order, number one, and number two is to trust the advice of your advisor, especially if you’re working with us. A good example is when we’re working with attorneys. I refer someone to an attorney because I think that attorney will be ideal at getting that transaction from offer to close as smoothly and as quickly as possible. Liquor stores and licenses is all I do, so trusting us along the way is the best thing you can do. As far as other preparation goes, know ahead of time what’s important to you. Think about storage space, parking needs, neighborhood preference, what type of store do you want, and if you are prepared for the amount of time that you will have to spend there? Do you have someone in your family that you can partner with who will help guide you along? I would rather know your questions ahead of time.

 

You’ve worked with different experience levels, backgrounds, and cultures. Can you give some insight?

We have experience of working with people of all different backgrounds, thankfully. It’s interesting because sometimes it’s a bit of a study in anthropology because you get to see what’s consistently important to people of different cultures. What the business community is like in the culture where they came from a lot of times reflects how they do business here and how they want to be marketed to. I definitely think that there’s a changing demographic.

 

When you’re working with a buyer for the first time, what’s the biggest priority in advising them and building a relationship?

Number one, find out what’s important to them, and number two, be honest with them. You don’t want to paint everything in a negative light, but you don’t want to lie to them. I have inquiries come in every day – there’s no shortage of buyers. The buyers I have the best relationships with are the ones I have been the most straightforward with. Honesty is definitely the best policy.

 

How do you match buyers with stores?

If you’re new to the market, a huge store with a lot of cash flow, commercial tenants, and a big price tag isn’t going to be the right opportunity for you. Don’t bite off more than you can chew, and be honest with what your capacity is. If you need to surround yourself with people who have the experience, do that.

 

Are there hot markets that are doing really well right now?

At the beginning of the pandemic, stores that operate 30-45 minutes outside of Boston were very attractive to people because they have people who commute in and out, are middle-class, and are very desirable – and who wouldn’t want a store in a nice neighborhood. With working from home continuing for some, this has tipped the scale a bit – I don’t know if there’s a market that doesn’t have people going after it right now.

Delivery companies are by far the hottest market sector we’re seeing right now because they don’t have to deal with the same constraints of the competition like walk-in stores do. It makes no difference to them if there’s a walk-in store down the street. They are making a change in the industry and are accomplishing what most cannot. The pandemic has certainly accelerated that.

 

Do you have a big win or favourite story so far?

Yes, I do. My friend Ike was a first-time liquor store owner. He is a Nigerian immigrant trying to build a life and is a very fair and honest guy. He was someone from the start who I was honest about how he could get the deal done and what he was capable of, and where we could be lenient and where we had to be firm. I got him a decent volume store, and he’s on his way to building his business. I was originally reluctant to tell him about this store because I wasn’t, at the time, confident that he’d be able to close something like that, but it’s a great example of building a relationship with someone and a great story of putting trust in one another. Thanks to an attorney who did a great job, and his trusting that the people he was working with were the best, led him to something he really wanted.

 

 

Questions about buying? Contact Ben Jerrom directly for further details on all of our current listings.

Ben Jerrom

Partner & Buyer Specialist

Cell: 413.544.4960

If you enjoyed this article, you’ll love our monthly publication, The Advisor Magazine – click to view more articles like this in The Advisor Magazine – Issue #6.

 

Gen Z’s Impact On Post-Pandemic Alcohol Consumption

Where & how they spend their money is changing the industry.

There is a defined line between “pre-pandemic” and “pandemic” life. Everything as we knew it came to a screeching stop, as businesses shut their doors and people sought at-home entertainment options instead. However, the lines are becoming blurred as we move into “post-pandemic” life, especially when it comes to consumerism and the ways in which we purchase and consume adult beverages – – and no one is more influential in setting and keeping these trends than Gen Z. Because the pandemic set in during what would typically be the most social years of their lives, they quickly made being “socially distant” as social as possible. Rather than spending their prime locked in isolation, they influenced the market in new ways – ways so impactful that they don’t seem to be going anywhere any time soon.

Drizly, North America’s largest e-commerce alcohol marketplace, recently released their 2021 Consumer Report, in which they revealed many interesting findings regarding how people plan to purchase and consume adult beverages post-pandemic. Gen Z, fresh to the legal drinking scene, is making a distinctive mark on this industry, paving the way for post-pandemic alcohol consumption and deciphering which pandemic trends will carry on. 

The Consumer Report highlights a survey of “over 1,000 Americans of legal drinking age, independent of Drizly’s customer base, in late June 2021 on a range of topics, from their beverage choice inclinations for this summer and fall (and what influences those choices), to how newfound interests at home stand to impact consumption occasions and locations longer term, and how they are purchasing alcohol.”

The findings show that although the younger drinking population plans to return to restaurants and bars, they also plan to continue drinking at home, especially while cooking and while watching TV and movies, one of the reasons why being because it is less expensive to drink at home. And with the ease of online ordering, a result of the pandemic with which many became comfortable, the ability to enjoy beverages at home is even more stress-free.

Gen Z’ers are not only changing where they will spend a majority of their time drinking, but also what they will be drinking. The current drink of choice is hard seltzers, with Ready-to-Drink (RTD) cocktails and other canned beverages also gaining popularity and stealing a bit of the seltzer’s thunder.

But this generation doesn’t only care about convenience and cost; they are also considered “conscious alcohol consumers”, and they pay attention to their drink ingredients, how they’re made, and by whom. This younger generation focuses on health in most aspects of their lives, which translates into them also wanting to choose the most healthful option when it comes to adult beverages. Factors such as minority ownership, sustainable practices, and “healthy” ingredients are all important to Gen Z, as well as family ownership, size, and local ownership.

As a generation known for stating their beliefs and living by them, Gen Z is combining the best of the pandemic drinking scene with the more traditional one, and the market is hearing them – and responding.

 

If you enjoyed this article, you’ll love our monthly publication, The Advisor Magazine – click to view more articles like this in The Advisor Magazine – Issue #6.

 

The Fine Line Between On & Off Premise

Over the last year, a bill was passed around the greater Massachusetts area, allowing restaurants to offer beer, wine, and cocktails to go.

Flashforward to June 2021, and the debate continues whether or not the emergency provision should continue. This month, lawmakers confirmed restaurants’ and bars’ continued ability to sell cocktails to go through until May 2022. While getting booze at just any store may not be an option, any restaurants are!

“DiZoglio, a Methuen Democrat who has pushed for the takeout drinks measures as a way to help restaurants recover from the COVID-19 pandemic and associated shutdowns, filed a bill (S 196) that would extend the authorization for to-go beer, wine and mixed drink sales until June 15, 2023 — two years beyond the end of the COVID-19 state of emergency.

Another bill (S 247), filed by Sen. John Velis, would permanently allow establishments with liquor licenses to sell beer and wine to-go.”

While this news is crucial for restaurants in order to stay afloat, it closely threatens the laws around alcohol consumption.

As Robert Mellion of MassPack put it: there are consequences when it comes to enabling serving alcohol off the premises. Not only that, but it is pinning on and off premise sales against one another, leading to vertical integration. Understandably, allowing consumers to carry premade cocktails out of an eating establishment does pose as an issue, but does it raise the likelihood of a customer choosing to crack open a tall boy upon leaving a liquor store? While laws do prohibit this, the same goes for restaurant-goers.

On the opposing side, Diana DiZoglio says, “the only other person to testify on to-go drinks legislation, pushed back against Mellion’s testimony, calling it “disgraceful” to “shift the blame for substance use disorder” onto restaurants.”

“I think if the gentleman before me has some challenges with alcohol being used in the commonwealth at all, and he’s serious about that, he probably wouldn’t be representing the package store industry and trying to monopolize the sale of alcohol in the commonwealth,” she said.

DiZoglio encourages engagement amongst local restaurants to demonstrate the significant role this law plays in enabling their business. She highlights, “how important this is and how much revenue it can generate, how much it’s been helping them, and how much residents actually are enjoying this new addition to our restaurant community.”

Balancing the scales between on and off premise is not an easy task: a steady give and take when it comes to law and supply, versus monetization and demand.

Although DiZoglio intends to see this become permanent where the scales will require more permanent stability, the initial reasoning behind this law was to stabilize these businesses’ operations and keep them running. There is no competition between on and off premise if one of them is nonexistent.

Most importantly, “[These restaurants] have been telling us how much of a tremendous impact this has had on them,” she said. “They have told us that they’ve been able to keep employees on the payroll, keep their lights on, pay their rent, pay their back rent.”

Priority lies among the on and off premise laws, keeping citizens safe while keeping businesses running.

 

If you enjoyed this article, you’ll love our monthly publication, The Advisor Magazine – click to view more articles like this in The Advisor Magazine – Issue #5.

 

 

Liquor License Applications in Florida, Massachusetts, New Jersey, and Pennsylvania

 

To sell alcohol at any venue in the United States, you need a liquor license. Each of the 50 states has a unique way of issuing these liquor licenses. The liquor license application process varies greatly from sea to shining sea.

In 17 states, liquor license quotas exist. Those states are:

• Alaska

• Arizona

• California

• Florida

• Idaho

• Kentucky

• Massachusetts

• Michigan

• Minnesota

• Montana

• New Jersey

• New Mexico

• Ohio

• Pennsylvania

• South Dakota

• Utah

• Washington

To help you with the application process, here are the basics on how to get a liquor license in the states of Florida, Massachusetts, New Jersey, and Pennsylvania, four states we commonly receive questions about.

 

Florida

In Florida, liquor licenses are handled by the statewide alcohol beverage control commission, the Florida Division of Alcoholic Beverages and Tobacco Bureau of Licensing. Three of the most popular types of liquor licenses in Florida are the quota license, the SRX, and the beer and wine license.

 

Quota

Florida is one of 17 states with a quota on the number of liquor licenses issued each year. The quota license is only required for full-service alcohol establishments, such as package-liquor stores, bars, and dining facilities that do not qualify for a SRX license.

 

SRX

With a special restaurant alcoholic beverage license (SRX), you can sell beer, wine, and liquor for consumption on the premises of a restaurant. However, to qualify for this license, that restaurant must get at least 51% of its revenue from food and non-alcoholic beverages. There is no quota on the number of SRX licenses issued in Florida each year.

 

Beer and Wine

Beer and wine licenses are the easiest and most affordable option for many business owners in Florida and can be used in restaurants, conveniences stores, and bars. However, this type of license does not necessarily make business owners much money.

Applications for each of these licenses are available online and at any ABT license office in the state of Florida. For each of these liquor license applications, you will have to provide fingerprints, a requirement that many other states do not have.

 

Massachusetts

In Massachusetts, the Alcoholic Beverages Control Commission (ABCC) of the Commonwealth of Massachusetts controls the issue of liquor licenses, of which there are approximately two-dozen types. The most commonly requested licenses fall into two categories: the alcohol beverages local retail license and the alcoholic beverages state license.

 

Local Retail License

The local retail liquor license application varies in each town and city in Massachusetts. Different types of local retail liquor licenses allow you to operate a package-liquor store, serve alcohol beverages at restaurants, or run a bar or nightclub. All liquor license applications and the associated fees must be submitted online. The ABCC recommends that you contact your Local Licensing Authority (LLA) before submitting your application, as they may have additional requirements for the liquor license application process in your area.

 

State License

State liquor licenses in Massachusetts are available under several broad categories, which include distribution licenses, direct-to-consumer licenses, broker or salesperson licenses, storage permits, transportation permits, manufacturer licenses, one-day special permits, and out-of-state licenses. Each of these liquor licenses has a separate application.

 

New Jersey

The Division of Alcohol Beverage Control (ABC) issues liquor licenses in New Jersey and the state has some of the toughest liquor license regulations in the country. Population and local ordinances limit the number of retail liquor licenses issued in a municipality, which makes it harder to obtain liquor licenses available for bars, restaurants, and package-liquor stores. For that reason, liquor licenses are often sold privately within a municipality and can be expensive.

There are 29 distinct types of liquor licenses issued in the state of New Jersey. One 12-page universal application form can be used for both local liquor licenses and state liquor licenses in New Jersey. However, only certain liquor license applications can be submitted online.

Three of the most common types of liquor licenses in New Jersey are the plenary retail consumption license, the restricted brewery license, and the bring-your-own-bottle license.

 

Plenary Retail Consumption License

The plenary retail consumption license allows alcohol beverages to be sold for consumption on the premises of a licensed venue as well as in packaged forms that can be removed from the licensed venue. This type of liquor license is best suited for restaurants and bars.

 

Restricted Brewery License

The restricted brewery license allows you to brew malt alcoholic beverages in restricted quantities each year. To acquire this liquor license, you will need a plenary retail consumption license. The restaurant or bar associated with your plenary retail consumption license must be associated and adjacent to your brewery.

 

Pennsylvania

Pennsylvania, like New Jersey, has some of the strictest liquor laws in the country. In the state of Pennsylvania, the Pennsylvania Liquor Control Board (PLCB) issues and renews liquor licenses. If you would like to acquire a new liquor license in Pennsylvania, you must register an online account with PLCB+, which allows applicants and licensees to submit liquor license applications, conduct business with the board, and access education and certification resources.

The most commonly requested liquor licenses in Pennsylvania are categorized by the kind of venue in which the alcoholic beverages are to be sold, such as the restaurant liquor license, the club and catering club liquor license, the distributor liquor license, the eating place liquor license, and the hotel liquor license. The restaurant, club and catering, eating place, and hotel liquor licenses require that the sale of alcoholic beverages be the secondary reason for the venue’s establishment.

Pennsylvania’s Liquor code limits the number of retail liquor licenses that a county can issue each year based on that county’s population. The quota is updated every 10 years to reflect any changes in the federal census. Restaurant, distributor, and eating place liquor licenses are among those affected by this quota.

Since Pennsylvania established its quota 1939, some counties have more retail liquor licenses than the quota allows. These “extra” licenses are still eligible for renewal, but no new licenses can be issued in those counties.

 

Why You Should Hire a Liquor License Broker to Obtain a License

 

Are you opening a business and looking to obtain a liquor license, or closing a business and looking to sell a liquor license? The process of buying, obtaining, and selling a liquor license can be frustrating. We know that there’s lots of red tape involved, and it’s common than you’d think to make mistakes early on in the process that can cost you later. Not only does a liquor license cost thousands of dollars, and sometimes even up to $1 million, there are quite a few sneaky fees and time-eating tasks involved. You might be wondering exactly what the application process entails, how to find what liquor licenses are available, and how exactly you obtain one. Or maybe you’re looking to lease or sell a liquor license, but the process is too confusing to parse out all the details. And that’s where Liquor License Advisor comes in.

 

Hiring a liquor license broker can help you avoid mistakes by taking some of the work off of your plate and guiding you through the application process, or the process of selling your liquor license. Think of us as a handy middleman. The liquor license application process is no joke, and we take it more seriously than anyone. We pride ourselves on educating you about all things relating to beer, wine, and liquor. We’ll map out fees, best business moves, and advise you throughout the journey. We know the liquor control laws in numerous states backwards and forwards, including all of the local rules and regulations. Ultimately, hiring a liquor license broker will ensure a smoother application process by arming you with knowledge and understanding.

 

At Liquor License Advisor, we can help you figure out exactly what type of liquor license you need to buy. We also help you deal with the Department of Alcoholic Beverage Control (ABC) in your state so that there’s less confusion for you. And even though the process of buying a liquor license can take up to a year, when you hire a liquor license broker, you save time and money in the long run. We’ll make sure that your application is as accurate as possible, down to the very last detail.  Not only that, but we’ll ensure that you’re getting the best deal possible.

 

We won’t simply jump on the first liquor license that’s available in the area where you want to open your business. We’ll do our due diligence, and assess the best options out there. Then, we’ll monitor the market and let you know when a liquor license that’s perfect for your needs is available. Doesn’t that sound better than waiting around and struggling through the process alone?

 

When you hire a liquor license broker, this is what we can guarantee:

 

We Save You Time

 

Hiring a liquor license broker can also be the push you need to complete the process efficiently. The people who work at the ABC are busy, and it’s not uncommon for things to get delayed. We’ll remind you to check in, follow up, and advocate for yourself so that the process gets done as quickly as possible. We can guide you through the whole ABC process, and lead you in the right direction. And hey, that might even shave off a few months for you! Sometimes happy hour comes early, right?

In addition to preparing you for the application process and answering any questions that you have, we’ll also make sure that you have all the materials you need including:

 

• Business License

• Sales Tax Permit

• Zoning Permit

• Alcohol Tax Permit

• Health Permit

• Building Permit

• Signage Permit

• Employer Identification Number (check with the IRS)

 

We’ll help you supply and file:

 

• Background check forms (some states might require fingerprints)

• A Certificate of Good Standing from the Secretary of State

• A Signed Lease Agreement to confirm the location of your business

• Financial verification sheets to prove that you’re in good tax standing

• Any potential processing fees required by your state

 

You might be wondering exactly how much time you’re saving by hiring a liquor license broker if you would have to go through the above process anyway. Simply put, we know the process like we know the back of our hands, and we’ll save you from all the worries and tiny mistakes that can easily befall anyone when thrust into a long, complicated application process.

 

 

We Provide You With Certainty

 

We have a whole team of professionals who are dedicated to perfecting each file, comma, and piece of your liquor license application. We want to save you countless hours of worrying about if you did something correctly or filed for the right type of liquor license.

 

By answering your questions and guiding you through the process, we provide certainty and piece of mind that you’re doing everything right. We’ll walk you through the risks associated with buying a liquor license, the whole liquor license real estate landscape, and make you feel confident about your knowledge in all things beer, wine, and liquor. At the end of the day, having license experts on board is a foolproof way to make sure you have all of your bases covered, and maybe sleep just a little easier at night.

 

We Provide Efficiency and Clarity

 

Simply put, at Liquor License Advisor, we know the liquor license market incredibly well. We’ll make you aware of any special conditions attached to the type of liquor license you need to buy, any restrictions, and ultimately set you up for success.

 

We will be by your side every single step of the way. We’ll make sure everything is taken care of down to the need to post a public notice of a pending liquor license, and wrapping the legal process up before making any business moves.

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