Third Round of Boston's New Neighborhood Restricted & Unrestricted Licenses: Where They've Gone So Far

Back in February, I shared with you where the 10 new unrestricted liquor licenses went, along with the location of the 40 restricted neighborhood alcohol licenses granted since the State Legislature had amended the Economic Development Bill originally passed in August 2014.  This bill allowed the City of Boston to issue 75 new liquor licenses over the course of 3 years (starting in 2014, 25 each year).  As you may recall, the restricted neighborhood licenses are limited to 7 neighborhoods (Dorchester, East Boston, Hyde Park, Jamaica Plain, Mattapan, Mission Hill and Roxbury), plus the city’s  Main Streets Districts.

Pursuant to the legislation, one last round of 25 licenses became available as of September 1, 2016, including 20 neighborhood restricted licenses (15 all-alcohol and 5 beer & wine) and 5 unrestricted all-alcohol licenses.

As of today’s date and out of the last round of 25, 14 neighborhood restricted and 3 unrestricted licenses have been granted by the Boston Licensing Board. Similar to the first two rounds, Dorchester has benefited most from the neighborhood restricted licenses. This year, however, we are seeing Roxbury and East Boston move up on the list along with the Main Streets Districts. So far, no licenses have been granted in Mission Hill, Hyde Park, or Mattapan in this cycle.

I have updated the map since the 2015 cycle, showing the locations of all the businesses that have benefited from the 2014 legislation. Click HERE  for a map of all of the Neighborhood Restricted Licenses (red markers) and Unrestricted Licenses (green markers) granted over the past three years. Additionally, please note the 2 restricted licenses (blue markers) granted to hotels per the Acts of 2006 amidst the granting of the 2014 legislative licenses.* 

Below is a tally showing how the licenses have panned out over Boston’s neighborhoods since the passing of the 2014 legislation meant to spur economic development (6 restricted and 2 unrestricted licenses remain as of today's date):  

Dorchester: 19
Main Streets: 12
Roxbury: 8
East Boston: 6
Jamaica Plain: 5
Mission Hill: 2
Hyde Park: 2
Mattapan: 0
Unrestricted: 13 - spread across Seaport, North End, Fort Point, Back Bay, South End, Beacon Hill, West Roxbury, West End, Charlestown and Downtown Crossing.

Below is a tally of the 17 licenses that have so far been granted as part of the 2016 cycle:

Dorchester (5 total)
All Alcohol (1): Taqueria
Beer & Wine (4): Kriola Bar & Restaurant, Molinaris, Pollo Centro, Anh Hong Restaurant

Main Streets Districts (3 total)
West Roxbury: Himalayan Bistro (All Alcohol)
Roslindale: Third Rail (All Alcohol)
South End: Anoushella (Beer & Wine)

Roxbury (3 total) 
All Alcohol: Mida, Residence Inn by Marriott, Victoria’s Diner (Upgrade from Beer & Wine)

East Boston (2 total) 
All Alcohol: Renegades Pub, New Street Restaurant

Jamaica Plain (1 total) 
All Alcohol: The Haven

UNRESTRICTED: Downtown Crossing - All Alcohol: Boston Chops, Charlestown - All Alcohol: Monument, and West End - All Alcohol: Hotel Indigo Boston

*[2 Innholder All-Alcohol licenses granted per the 2006 Acts of ch. 383: AC Hotel by Marriott South End and Beverly Street Hotel]

Boston's Neighborhood Restricted Liquor Licenses: Where They Went

Last week, I shared with you where the 10 new unrestricted liquor licenses went as a result of the amended Economic Development Bill originally passed in August 2014, which allowed the City of Boston to issue 75 new liquor licenses over the next 3 years (starting in 2014, 25 each year).

This week, we're taking a look at where all the restricted neighborhood alcohol licenses have gone since the new legislation passed in 2014. As a reminder, these licenses are limited to 7 neighborhoods: Dorchester, East Boston, Hyde Park, Jamaica Plain, Mattapan, Mission Hill, Roxbury and Main Streets Districts as designated by the Boston Redevelopment Authority ("BRA"). To date, all 40 restricted licenses have been issued, which means the last 20 available under this particular legislation (and the last 5 unrestricted licenses) won't be available until September 1, 2016.  

In August of 2015, we mapped out the location of the first 20 licenses issued under the legislation. Not surprisingly, Dorchester and Main Streets businesses snagged most of them, with East Boston trailing in third.  As of August 2015, no applications had been received for Mission Hill or Mattapan.  Disappointingly, this remains true for Mattapan. However, 2 businesses in Mission Hill have since joined the growing list of Boston businesses now able to serve your favorite cocktail, craft beer or glass of wine.  

In similar fashion to the first round of licenses, Dorchester and the Main Streets Districts have continued to benefit from the creation of the new, restricted licenses. Check out the map and corresponding lists below for a neighborhood breakdown of the newest licensees. 

Click HERE for a map of Neighborhood Restricted Licenses issued in the 2014 & 2015 cycles.

Dorchester (14 total)

All-Alcohol (9):  Boston Bowl, Pho Le Restaurant, Sweetlife Cafe & Bakery, Homestead Bakery & Cafe, K O'Brien's Kitchen & Tavern, Lower Mills Tavern, Levi's Restaurant & Lounge, & Sam Maverick's, & Will E. Reed Auditorium (General On-Premise All-Alcohol)

Beer & Wine (3):  Bred, Bon Appetit Restaurant, & Pho So 1 Boston

Beer, Wine & Cordials (2): Sea Breeze Mexican Grill & Dot 2 DotCafe

Main Streets Districts (9 total)

Chinatown: Townsman, Jaho Coffee & Wine Bar, & Great Taste Bakery & Restaurant

Roslindale: Derna's

South End: Estragon & Seiyo Sushi

Allston/Brighton: The Puritan & @ Union (Beer & Wine)

West Roxbury: Porter Cafe

Roxbury (5 total)  

All-Alcohol (3):  Suya Joint, Dona Habana

Beer & Wine (3): Dudley Dough, Tasty Burger, & Dudley Cafe & Convenience

East Boston (4 total) 

All-Alcohol: Maverick Marketplace & Cunard Tavern

Beer, Wine & Cordials: East Boston Kitchen & Oliveira's Steak House

Jamaica Plain (4) 

All-Alcohol: Tres Gatos, Grassfed, Brassica Kitchen + Cafe, & The Frogmore

Mission Hill (2)

All-Alcohol: The Penguin & 1508 Tremont St (d/b/a TBA)

Hyde Park (2)

All-Alcohol: Antonio's Bacaro & Ricon Caribeno Restaurant

Mattapan (0)

Mayor Walsh's Late Night Task Force is Underway

As released by the Massachusetts Restaurant Association last night, Boston Mayor Marty Walsh continues to work towards improvements in the current rules and regulations surrounding the city's late night dining and entertainment options.

Boston's Late Night Task Force, assembled early on in Mayor Walsh's term, has been focusing its efforts on extended closing hours and streamlined city processes, simplifying the way business is done in Boston. A sampling of the most recent recommendations passed on by the Task Force are as follows:

• Later closing hours within designated downtown areas (with Licensing Board hearing);
• Allowance of patio and deck alcoholic beverages without the requirement to serve food;
• Allow operators citywide with 10pm & 11pm closing hours to stay open until midnight;
• Inspectional Services automatically schedules inspections once operators renew their Certificates of Inspections; 
• Allowance of later closing hours for live entertainment and music played on patios (but shhh...you still can't disturb your neighbors)

For more comments from around the Boston restaurant industry, read this morning's Boston Globe article.

What say you? Are we moving in the right direction? What other bullet list items do you think would be beneficial to streamlining the city's processes?

Will Boston Drink To That?

BYOB Policy Change Could Benefit Retail Economy

as seen on Banker & Tradesman, October 25, 2015

On a Friday night in Boston, we can’t just walk into the Capital Grille with a six-pack of the latest rage in craft beer or a bottle of bubbly we’ve been waiting to pop since New Year’s Eve. Massachusetts law prevents dining patrons from bringing any alcohol into an establishment that holds a license to serve alcohol.

Even still, unlicensed establishments are at the mercy of local officials: every municipality is free to prohibit, allow or license the practice known as “bring your own bottle” (BYOB). Boston has long prohibited the practice; however, the tides are changing, and so too may the option for Boston diners to BYOB.

Let’s face it: the ability to sell and serve alcohol at full-service dining establishments increases frequency of visitors and the chances that patrons stay a little longer and return time and time again. However, with all-alcoholic beverage licenses costing as much as $400,000 in Boston, a BYOB option could theoretically help those first-time restaurant owners and young entrepreneurial chefs focus on the food while they attempt to earn their place in the ever-evolving restaurant industry.

This past winter, Boston City Councilors At-Large Michelle Wu and Stephen Murphy proposed an amendment to the City of Boston Code to allow patrons to bring their own alcoholic beverages into dining establishments that lack an alcoholic beverages license. The proposal was presented in the spirit of economic development, similar to the economic growth bill of 2014 creating new, albeit restricted liquor licenses for the city. Of course, the allowance of BYOB in Boston restaurants would not come without regulation. How it should be regulated is up for debate, particularly out of fairness to those businesses that have otherwise spent a small fortune for the privilege to serve alcohol.

Location As A Starting Point

After the debates of last year’s bill in creating the new unrestricted licenses, one obvious criteria would be the imposition of geographic restrictions. Such restrictions are an appropriate starting point in balancing current investments with the need for economic stimulation in other neighborhoods. The notion of BYOB permits may be better received if prohibited from setting up shop in the downtown area, Back Bay and North End, which tend to be the first neighborhoods used as examples of areas amply saturated with liquor licenses. The city might also consider imposing restrictions on the number of seats allowed inside a BYOB establishment (or, no bar seating, for example) or limitations on the types of alcohol permitted for consumption (i.e. beer and wine only).

Some commonwealth locales, such as Mansfield and nearby Brookline, issue BYOB permits to unlicensed establishments for free; however, they elect to include certain caveats, such as mandatory alcohol server training programs, ID checking, food order requirements and corkage fee rules. Just last month, the Watertown Town Council voted 6-3 to approve a BYOB ordinance, which will go into effect April 1, 2016. The reoccurring issues throughout these discussions focused around cost of the permits as well as enforcement of BYOB regulations.

Boston is not the first to consider BYOB, and can learn from other U.S. cities that have successfully paved the way for their citizens to BYOB on their next anniversary dinner. According to wine writer Roger Morris, “Pennsylvania restaurants have turned a major negative – limited liquor licenses, and expensive ones at that – into a marketing positive” using BYOB. Philadelphia has become the BYOB mecca with over 200 BYOB establishments. Pennsylvania, unlike Massachusetts, allows BYOB in licensed or unlicensed restaurants.

Over the past decade, the city of Boston not only looks, but feels like it has undergone a major facelift. Few can argue the results – new and vibrant neighborhoods and businesses have been established, development opportunity has flourished, and we’ve earned our spot on the map as a hub for innovation and dare we say … fun? (Very responsible, adult fun, of course.)

Allowing for thoughtfully regulated BYOB would benefit the surrounding neighborhoods, provide more options for great food, and put more lights and eyes on our streets. If the city finally decides to raise its glass in a toast to BYOB, it might be the perfect occasion for that bottle of bubbly you’ve been saving since last New Year’s Eve.

Watertown to Allow BYOB in 2016

The City of Watertown became the latest municipality to green-light the bring your own bottle (“BYOB” ) concept. Permits will be made available to unlicensed, full-service dining establishments starting in April 2016.

The initial BYOB proposal was made over a year before last month’s vote to allow BYOB in Watertown. See http://watertown.wickedlocal.com/article/20140908/News/140907282. 

Ultimately, the Council approved BYOB with a $1,000 annual fee, while limiting the permit to full-service indoor dining establishments. A patron wishing to participate in BYOB must order food, and may only consume beer and wine on the premises.  Further, in accordance with public safety standards, servers must undergo alcohol server training, check IDs, and not serve impaired patrons.

The Watertown Licensing Board has provided itself with some time to draft regulations, which will not go into effect until April 1, 2016. Ultimately the Licensing Board has discretion as to the issuance of BYOB permits, which may include restrictions on how much alcohol patrons are allowed to bring into establishments. New restaurants will have to wait six months before they are eligible to apply for a BYOB permit, and any establishment that has had its previously issued Chapter 138 license suspended or revoked will not be eligible for BYOB permit.

(Un?)happy Hour, Private Functions & the Dos & Don'ts of Alcohol Pricing

No happy hour dollar drafts here! The Alcoholic Beverages Control Commission (ABCC) enforces the Commonwealth’s ban on happy hour discounts on alcoholic beverages. The ban, in place since 1984, forbids a licensee from changing prices on alcohol during the same calendar week. Massachusetts was the first state to enact such a rule and is one of only a few with such a rule left on its books. (See Time Magazine's recent article regarding the last states standing strong with bans on happy hour.) Earlier this year Beacon Hill legislators withdrew a proposal to alter the ban, citing lack of support. (See a thorough explanation of both sides of the happy hour argument by Statehouse reporter Christian Wade here.)

Until the legislature or ABCC acts to repeal or limit the ban on promotional pricing, restaurants, bars, and retailers must be aware of the so-called “Happy Hour Regulations.” The regulation requires that all alcoholic beverage prices must remain the same for a calendar week. Private functions are the sole exception to the rule (which is another blog post in and of itself). If challenged, the licensee must prove that it qualifies for the private function exception based upon strict requirements set by the ABCC. The ABCC requires:

1. the private function has a host;

2. access to the private function is restricted to invited guests;

3. invited guests are not charged indirectly or directly;

4. the host is the only individual responsible for payment to the licensee;

5. the private function was not publicly advertised; and

6. written records containing the guest list exist and are available for inspection by the licensing authorities. 

Regulations impact licensees in various ways. For example, licensees may not deliver pitchers to a single patron. Licensees may not allow or encourage drinking games. Licensees offering a “bucket” of beers violate the Happy Hour Regulation if the price per beer contained in the “bucket” is less than what the establishment charges for a single beer. (See Boston Nightlife Ventures, Inc., ABCC Decision, 1/13/09). To somewhat skirt the (un)Happy Hour rule, many bars and restaurants discount food in place of discounts on alcohol. 

While the Happy Hour Regulation focus on on-premise licensees, off-premise licensees, by law, must “keep conspicuously posted in each room where any alcoholic beverages are sold a price list of such beverages.” Massachusetts General Laws, Ch. 138 § 15. Coupons offering discounts on alcoholic beverages are strictly forbidden as they alter the price offered from the establishment’s price list to which an off-premise licensee must adhere. The ABCC has imposed one day license suspensions on licensees caught accepting or distributing coupons in violation of this provision of Chapter 138. See Denrich Enterprises, Inc., d.b.a. Liberty Liquors, ABCC Decision, 1/24/97 (licensee had $1 off coupons printed on the back of grocery store receipts and had accepted at least six such coupons); West Mansfield, Inc., d.b.a. Rum Runner Wine & Spirits, ABCC Decision, 1/24/97 (licensee had 10% and 15% discount coupons printed on the back of Stop & Shop receipts, the ABCC rejected the argument that the coupons at issue were available to the general public).

Before engaging in a practice which may lower prices for short time periods, or for some, but not all customers, a licensee should seek legal guidance for the proper course of action, or it may be at risk for sanctions by licensing authorities.

What are your thoughts on special drink prices? Coupons? Happy Hour? 

Second Round of New Boston Liquor Licenses Become Available

Last summer, legislators on Beacon Hill debated and ultimately passed an economic development bill increasing the number of alcoholic beverages licenses available in Boston. (See the full text of the law here.) Legislators faced two camps: the first argued that new licenses stimulate the economy, while the other camp sought to preserve significant investments required to obtain then-existing licenses. The first group splintered into two main reforms. One reform championed by Boston City Councilor Ayanna Pressley, sought to remove the statutory cap and allow the cities and towns to decide how many licenses to issue. Boston City Councilor Tito Jackson proposed the issuance of geographically restricted licenses. (See the Boston Globe on the two schools of thought here.) 

Ultimately, legislators compromised between granting additional licenses and protecting significant investments previously made by the business community to purchase existing licenses. The legislature passed a bill to phase in 75 new licenses over 3 years, with the first batch made available on September 1, 2014.  60 of the new licenses are geographically restricted and cannot be transferred. The remaining 15 new licenses were originally intended to be unrestricted all alcoholic beverage licenses; however, those licenses have not been issued due to inconsistencies in the legislation which still need to be addressed.

The new restricted licenses (up to 20 issued each year; 60 total) are restricted to certain areas of Boston.  These licenses are limited to 7 neighborhoods: Dorchester, East Boston, Hyde Park, Jamaica Plain, Mattapan, Mission Hill, Roxbury and Main Street Districts as designated by the Boston Redevelopment Authority (“BRA”). See The Department of Neighborhood Development's map of Main Streets Districts here.  Each of these licenses, once issued, cannot be transferred to a different neighborhood or area in which it was originally issued and cannot be transferred to any other person or entity.

As of August 2015, all 20 restricted licenses had been issued. The bulk of the new licenses were issued to businesses in Dorchester (6), and in various Main Streets Districts (Chinatown, South End, Allston and Roslindale), while 3 were issued in East Boston, and the rest in Hyde Park, Roxbury and Jamaica Plain.  No applications had yet been received for new licenses in Mattapan or Mission Hill.  See a map of where some of these neighborhood based licenses have been issued here.  

A call to the Boston Licensing Board on August 28, 2015 revealed that there are currently no licenses available. However, under the legislation,15 restricted all alcoholic beverages licenses and 5 restricted wine and malt beverages licenses can be issued effective today, September 1, 2015.