Massachusetts is on the verge of enacting a landmark overhaul of its liquor laws, which will significantly reshape Boston’s cultural and economic landscape. The legislation, which introduces 225 additional liquor licenses in the city, goes beyond a mere regulatory update — it is a powerful advancement in equity, with substantial implications for social justice, economic opportunity, and cultural enrichment.

Spearheaded by Senator Liz Miranda of Roxbury and Representative Christopher Worrell of Dorchester, the bill would expand access to liquor licenses and stimulate growth in Boston’s dynamic hospitality sector. It would create a limited number of new, nontransferable liquor licenses for specific ZIP codes in Boston. This legislation would increase opportunities for business owners and aspiring restaurateurs to contribute to the economic and cultural vitality of neighborhoods that have historically faced disinvestment and gentrification.

Without these new licenses, often the only path to obtaining a liquor license is to purchase one from a current license holder, with a reported price tag of up to $600,000. For many entrepreneurs of color, this is an insurmountable hurdle to launching their hospitality ventures.

For Boston’s Black communities, this legislation is particularly significant. Historically, systemic barriers and high costs have prevented Black entrepreneurs from entering and thriving in the city’s hospitality sector. Alcohol sales are twice as profitable as food sales, and 80 percent of restaurant concepts are not profitable without alcohol sales. However, according to the Boston Black Hospitality Coalition, less than 2 percent of Boston liquor licenses are held by operators who identify as Black — even though 22 percent of Boston residents are Black.

The anticipated increase in Black-owned restaurants and bars promises to enrich Boston’s cultural fabric, notably in Dorchester, East Boston, Hyde Park, Mattapan, and Roxbury. This influx of new businesses is expected to create job opportunities within the community, driving economic growth and fostering a renewed sense of ownership and pride. Moreover, the potential for increased investment in Black neighborhoods could catalyze broader economic revitalization and enhance social cohesion.

The bill would also contribute to the creation of “third spaces” — vital community hubs where people can gather, connect, affirm, and sustain their cultural heritage. By enabling more diverse ownership of hospitality venues, the new licenses would support the cultivation of these vibrant social and cultural gathering points, particularly in neighborhoods, like Nubian Square, that are undergoing development but lacking destinations for community connection.

Boston’s cultural landscape is set to benefit considerably from this paradigm shift. These new licenses would help nurture vibrant community ecosystems where creativity and innovation can thrive. A more varied array of liquor licenses would lead to a dynamic hospitality scene that reflects the city’s diverse population. New establishments will bring fresh perspectives, excitement, and creative energy to Boston’s neighborhoods, enhancing the city’s reputation as a cultural hub.

The reform also addresses the pressing issue of retention and attraction of talent in the city and across Massachusetts by supporting the growth of Black-owned businesses and generating new job opportunities. Small, diverse businesses are more likely to contribute to the local economy by hiring workers in the neighborhood. This promotes both economic development and strengthens Boston’s competitive edge in an evolving job market.

We applaud the Legislature for coming to an agreement and look forward to the bill being sent to and signed by Governor Maura Healey. This overdue reform will reflect the city’s diverse and dynamic communities.

Nicole Obi is president and CEO of the Black Economic Council of Massachusetts. Imari Paris Jeffries is president and CEO of Embrace Boston.