One of the biggest obstacles facing restaurant entrepreneurs is getting a liquor license. Boston-based data reveals a significant racial divide in the population with them.
Some have called it an outdated system. Boston establishments are only allowed to receive a certain amount of liquor licenses from the state, and because of a secondary market, these licenses can frequently be resold for more than $500,000.
Approximately 1,400 liquor licenses are now in Boston, and 2% of those licenses are held by people of color, according to State Senator Liz Miranda.
The Massachusetts Senate reached a consensus on a bill to alter the current system on Monday.
The plan would add 264 liquor licenses, which would be distributed over a number of years according to zip codes, if it passes. According to the current bill, applications would be required for the free licenses, and some would be considered non-transferable. For more than a year, Boston City Councilor Brian Worrell has collaborated with the state on this project.
“We already know the amount of money it takes to start a business, especially a restaurant,” Worrell stated. “So, $600,000 is a burden to restaurant owners, especially those who are Black and Brown.”
According to Worrell, Blue Hill Avenue, a major highway in the city, has six liquor licenses along its course, while Mattapan has six.
“So, when you compare that to other neighborhoods that have 80 like the Back Bay, the disparities send a clear message,” Worrell stated.
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For the past two years, Andre Williams has been the owner and operator of the Cool Shade restaurant in Dorchester. His attempt to obtain a liquor license began even prior to the establishment of the business.
“Liquor licenses are expensive so a lot of people can’t’ afford it,” Williams stated. “Maybe it’s the community that we are in. If we had a liquor license it would revitalize our neighborhood. It would also boost business for local restaurants here in Boston.”
This measure is also a part of the House version. Later this week, a committee meeting is planned to bring the two chambers together to debate.
