Somerville Patch has a brief article about the recent competition to obtain a liquor license in Somerville.
Folks following the development of the new restaurant Casa B, slated to open this fall at 253 Washington Street, know that the owners obtained their liquor license the end of March. Two other restaurants were vying before the Licensing Board at that meeting for permission to sell all spirits – beer, wine and hard liquor.
A liquor license is a valuable benefit for a restaurant. The ability to serve alcohol is an added draw for customers who wish to have such a libation with their meal. And alcohol is a significant profit center for restaurants that typically exist on small margins when serving exclusively food.
For those unfamiliar, there’s roughly four kinds of liquor licenses available: those that allow for sales of bottled liquor as in package stores, temporary permits for one-day special events, a license to sell beer and wine, and a “full liquor” license that allows for sale of beer and wine as well as spirits. The beer and wine license and the full liquor are the ones that restaurants and bars seek to obtain through permission of both the state and the city. The state controls the number of licenses assigned to each community and the number is generally issued in proportion to the number of residents. Because there’s a limited number of licenses and high demand for them, there’s a value in the license itself; when a bar or restaurant closes they are typically able to sell their license to another business upon the successful transfer by the state and city. Licenses around here sell for about $80,000.
The City of Somerville recently obtained through the state a number of additional beer and wine and all liquor licenses. These new licenses, nicknamed “bounce back licenses,” are not transferable. This means that businesses that might otherwise not have been able to afford to buy a license are able to do so. The purpose of these licenses is to foster economic development and, with a limited number to distribute, the city is issuing them carefully. Most are slated for businesses to open in Assembly Square. The others are designated for other Somerville neighborhoods.
The licensing board considers a number of issues when granting a license. Among them is economic impact, viability of the business, and community support. They also consider whether this is an appropriate location and concept for a business serving alcohol. A neighborhood pizzeria that services mostly teens and is beside a school is less likely to obtain a license than a 70 seat upscale restaurant in the heart of Davis Square.
Update: May 4, 2011: The Somerville News reports on work by the Somerville Board of Aldermen to introduce more beer and wine licenses to the City.
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