Boston is on the brink of a significant change in its liquor licensing regulations. Mayor Michelle Wu announced plans to introduce legislation that will enable establishments with beer-and-wine licenses to upgrade to all-alcohol licenses. This initiative is aimed at benefiting restaurateurs and enhancing their offerings to meet rising customer demands for cocktails and mixed drinks.
Wu made the announcement at Dynasty, a restaurant in Chinatown, owned by Jeffrey Yu, who is eager to transition his license. “A liquor license is more than just a piece of paper; it’s a game changer,” Wu stated. She emphasized that such an upgrade could significantly impact a business’s revenue and sustainability, allowing restaurants to maximize their potential.
This proposed trade-in option is part of a broader effort to reform Boston’s liquor licensing framework, aiming to make permits more accessible and affordable for local businesses. For over two decades, the local demand for liquor licenses has far exceeded the supply. Due to this scarcity, restaurateurs often find themselves purchasing licenses from businesses that have closed, which has inflated the resale price of all-alcohol licenses to approximately $600,000.
In a significant move last year, the state allowed for the creation of 225 new liquor licenses in Boston—the largest expansion since the end of Prohibition. These newly established licenses are free and are being allocated over a three-year period, primarily targeting 13 ZIP codes identified as needing economic development through dining establishments.
Most of these new licenses are restricted, meaning they cannot be traded or sold and must be returned to the city when they are no longer required. To date, the Boston Licensing Board has granted 61 of these new licenses to various restaurants and community organizations across neighborhoods like Mattapan and Hyde Park, indicating that many licenses are still available for distribution.
The ability for beer-and-wine license holders to upgrade to all-alcohol permits also addresses ongoing political concerns, particularly for Mayor Wu and state representative Michlewitz, who share close political ties. Restaurateurs in the North End have voiced frustrations regarding their inability to upgrade their licenses under previous frameworks. As part of this legislative push, some of these owners, like Frank DePasquale of Bricco and Mare, are now set to exchange their beer-and-wine licenses for all-alcohol permits, which he describes as a long-awaited opportunity.
DePasquale remarked, “I’ve been waiting a lifetime for this. Everybody wants cocktails today… it’s the right thing to do.”
However, not all restaurant owners may see this upgrade as a wise choice. Many might hesitate to relinquish their unrestricted beer-and-wine licenses, especially if they plan to sell their establishments in the near future. Such licenses can significantly contribute to a restaurant’s market value, often exceeding $100,000.
Steve Clark, president of the Massachusetts Restaurant Association, underscored the importance of giving owners the autonomy to make their own decisions regarding their licenses. He stated that the goal of the upgrade policy is to empower local restaurant owners further.
For Michlewitz, whose district includes both the North End and Chinatown, this upgrade option represents a critical advancement in the efforts to reduce barriers and create equitable opportunities within the restaurant sector. “This was the next step,” he claimed, citing it as a valuable resource for local dining establishments.
image source from：bostonglobe
