Skoufis says bars should buy spirits from liquor stores (VIDEOS)

Restaurant and bar owners in the Hudson Valley and throughout the state are getting help in dealing with “archaic” liquor laws from State Senator James Skoufis.  Skoufis joined with bar owners and the executive director of the Empire State Restaurant & Tavern Association to discuss potential changes to the  Alcohol & Beverage Control (ABC) laws he called “extremely antiquated”.

The laws, Skoufis said, “have not been touched since the 1920s and 1930s prohibition era.  There are laws that haven’t been updated since before we abolished child labor in the United States.”

Restaurants and bars have long advocated for this important reform that their state association estimates would save their small businesses $5,000 to $10,000 per year from surcharges imposed by large distributors. Two liquor distributors supply alcoholic beverages to bars and restaurants in New York; Empire Merchants and Southern Glazer’s.  The companies are accused of charging excessive fees for delivery as well as fees for ordering a partial case of liquor, commonly called a “split-case fee”.   Skoufis calls the two wholesale distributors a “duopoly” and wants to change the laws to help small businesses avoid the excessive “split-case” fees the companies charge.

Under the current law, restaurants and bars cannot purchase liquor from liquor stores.  Instead, they must purchase from the two wholesalers.  Due to the delivery charges and split-case fees, the bars and restaurants typically pay substantially more for a bottle of liquor compared to what they would pay at a liquor store.

Speaking at the Golden Rail Ale House in the Town of Newburgh early Monday morning, Skoufis said “We should be doing anything and everything in our legislative capacity to ensure that small business owners get the support they need,” said Skoufis, “Restaurants and taverns are critical to our communities’ economic vitality and these important proposals allow business owners to serve their customers in a timely and cost-effective manner.”

Empire State Restaurant & Tavern Association Executive Director Scott Wexler praised Skoufis on behalf of association members.  “The proposal to allow restaurants and taverns to purchase 12 bottles of liquor and wine each week from a liquor store will allow our members to avoid the exorbitant split case fees and delivery charges small operators are subjected to by the large liquor wholesalers that are functional monopolies. This proposal wouldn’t have made the Senate budget proposal without the dogged advocacy of Senator James Skoufis.”

Brian Butler, the proprietor of the Golden Rail for 30 years said that many bars and restaurants don’t have the space needed to stockpile cases of liquor to avoid the split-case fee and the wholesalers take advantage of that. “I wish all the split case fees and delivery charges that I’ve had imposed on me during those years,” he said as the 30-year owner of the Golden Rail, noting that the additional fees are more than $150,000 over that time.  He also stressed that the ability to purchase a bottle from a liquor store if he runs out would keep a customer from taking their business elsewhere.  Eleven dollars, Butler pointed out, in additional fees from the wholesaler are added to the cost of each bottle he purchases that is not part of a full case.  That cost is passed along to the consumer.

Brian Butler talking about the money spent on excess fees charged by the “Duopoly”: https://youtu.be/SkJZ0855tKs