The Tennessee Alcoholic Beverage Commission recently
introduced a new requirement for restaurants applying for liquor licenses.
Applicants must submit a business plan that details projected sales
of food, alcohol and other income.
Limited service restaurants, the legal euphemism for bars in
Tennessee, are accustomed to filing an affidavit specifying the percentage of
alcoholic beverage sales compared to food, beer and other sales. Limited
service license fees are based on the percentage of food sales and the
affidavit essentially sets the amount of the license fee.
Because of a new law, ABC Assistant Director Keith Bell is
requiring all restaurant applicants, including restaurants that serve more than
50% food, file business plans before applications can be approved. The rule
does not apply to other types of liquor-by-the-dinrk licenses, like hotels and
caterers.
Fortunately, Mr. Bell is not looking for a full-blown
business plan that would please a business school professor.
Based on our experience, the business plan needs to focus on
facts specific to the percentages of food to liquor, beer and other income.
Projected income with percentages are key.
Other facts to include are hours of food service (lunch and
dinner, as opposed to just late night), number of food prep and service staff, or plans for bartenders preparing food, basic summary of the kitchen, number
seats at traditional restaurant tables, how food will be marketed to patrons,
and any other facts directly related to food sales.
Confidentiality of projected earnings is an issue that has not resolved. With the exception of social security numbers and other
sensitive personal data, anything filed at the ABC becomes a public record.
We suggest folks follow Jimmy Buffet's advice: If life gives
you limes, make margaritas.
No comments:
Post a Comment