Liquor License sold for $1M

[rozrapp]

http://newstranscript.gmnews.com/news/2003...t_Page/001.html

[tommy]

seems like the liquor license business is doing better than even the real estate business.

Edited June 18, 2003 by tommy (log)

[menton1]

Not surprising, it's a lot like a taxi medallion in NYC. There are only a finite # of liquor licenses, per municipality, allowed in NJ. They can turn around and resell the license, probably for a profit.

Creates a lot of BYOBs as well!

[Kim WB]

it's interesting how there is a reference to the cost effectiveness of the community ..with the current budget situation, it's either raise taxes or find ways to bring in the bucks...and that's a lot of bucks! No wonder they are going to sell another one soon!

Edited June 18, 2003 by Kim WB (log)

[inventolux]

Another giant leap for alcoholism.

[Kim WB]

Another giant leap for alcoholism.

Not adressing alcoholism, but DWI... a Ruby Tuesday is probably the safest bet...these corporate chains train their staffs about serving intoxicated guests, and ways to limit drunk driving. A local tavern might have more of a "wink and nod" kind of approach.

[tommy]

i don't think i've ever seen anyone drunk at Ruby Tuesday's. although i'd have to at the very least be hungover to eat there.

[glenn]

Don't know if this has been discussed before, if so, please point the way. Does each county/town control the number of liquor licenses, who they're given to and the fee? What are the procedures to get a license, generally speaking? What role does the state play?

[jhlurie]

Don't know if this has been discussed before, if so, please point the way.  Does each county/town control the number of liquor licenses, who they're given to and the fee?  What are the procedures to get a license, generally speaking?  What role does the state play?

Its all based on who is most corrupt, of course.

[menton1]

The municipalities are allowed one license per 3000 residents; the towns can only issue additional licenses when it can document an increase in population-- then it is up for bids. Otherwise, you can only buy a license from an existing license-holder.

The only town in the State that is exempt is Hoboken, something to do with an issue dating back to the 40s. Maybe someone can expound on exactly why Hoboken is exempt.

Edited June 18, 2003 by menton1 (log)

[KatieLoeb]

I just heard last night that a liquor license in North Cape May, NJ is going for $850,000 and I thought that was outrageous. That'll put the new owner in the hole for six to eight years I'd guess, with real estate taxes and mortgages on retail property to still be paid as well. YIKES!

I guess a big corporate backed chain is the only entity that could afford such an investment. So much for "local" businesses.

[inventolux]

Don't know if this has been discussed before, if so, please point the way.  Does each county/town control the number of liquor licenses, who they're given to and the fee?  What are the procedures to get a license, generally speaking?  What role does the state play?

Its all based on who is most corrupt, of course.

Speaking from having applied for a liquor liscence, its a who you know or how much you have game where Im at. Very shady stuff.

[Rachel Perlow]

I guess a big corporate backed chain is the only entity that could afford such an investment.  So much for "local" businesses. 

That's exactly what I was thinking, Katie.

[thereuare]

Maybe someone can expound on exactly why Hoboken is exempt.

Because they are the most corrupt?

[Andrew Fenton]

I guess a big corporate backed chain is the only entity that could afford such an investment.  So much for "local" businesses. 

Katie, I seem to recall that in the last year or so, a liquor license for a restaurant at the King of Prussia mall went for like $700K. I think that that was for a chain restaurant as well: do you remember the details?

[Rail Paul]

As always, there are nuances to NJ law.

Clubs are allowed a special purpose alcohol license for their membership and certain defined guests. A club may NOT serve or sell to persons who are non-members unless they are guests of the member, who must be present. The member's gotta pay.

The definition of club is also historically fuzzy, but think of the Elks, Knights of Columbus, or the VFW as an example. In theory that license can't be converted to a general purpose restaurant license, BUT it has happened. One nearly moribund club in Essex County converted its license for about $550,000. The town fathers quietly approved the hardship conversion, the notice appeared in the local paper, the state ABC signed off and the ticket migrated to a nearby restaurant. The club building was sold to a developer who began paying taxes.

The town was able to bypass the state limit on licenses since it didn't qualify on population and had reached its max number of licenses already.

[Craig Camp]

Once again government trashes the consumer in the guise of consumer protector. So much for an independent that might want to open a restaurant and give the consumer better product than the assembly line chain food at Ruby Tuesday's.

It also shows you how much profit there is in selling Absolute and Budweiser.

[inventolux]

Once again government trashes the consumer in the guise of consumer protector. So much for an independent that might want to open a restaurant and give the consumer better product than the assembly line chain food at Ruby Tuesday's.

It also shows you how much profit there is in selling Absolute and Budweiser.

How much profit is there in car insurance hikes because of drunk drivers? (sorry, another thread)

[KatieLoeb]

I guess a big corporate backed chain is the only entity that could afford such an investment.  So much for "local" businesses. 

Katie, I seem to recall that in the last year or so, a liquor license for a restaurant at the King of Prussia mall went for like $700K. I think that that was for a chain restaurant as well: do you remember the details?

Andrew:

That may be true, but PA because of the PLCB is very different than NJ. In New Jersey there is still (presumably) free enterprise and competition. These out of control licensing fees seem to squash any notion that anyone but a huge corporation can get into the bar business.

Liquor licenses in PA have always been that expensive, simply because of the monopoly and certain local ordinances as well (only so many licenses per township, etc.). I don't remember which place got the license in KofP you're referring to.

[menton1]

Once again government trashes the consumer in the guise of consumer protector. So much for an independent that might want to open a restaurant and give the consumer better product than the assembly line chain food at Ruby Tuesday's.

It also shows you how much profit there is in selling Absolute and Budweiser.

This really is not by design in New Jersey; it is a result of the finite # of liquor licenses allowed. Actually good for the consumer, because of the proliferation of BYOBs.

In New York State, it is my understanding that there are no limitations to the # of liquor licenses-- a license in NY can cost under $3000.