Boston aims to change how businesses are awarded liquor licenses

BOSTON – In Boston, liquor licenses are the golden ticket of the restaurant industry. Lawmakers on Beacon Hill are working to make the process of getting one more equitable. 

Liquor licenses can make or break a business’s success. They are also notoriously difficult to get. 

Boston’s antiquated liquor license system

The system, widely criticized as antiquated, has led to a booming secondary market where liquor licenses are being sold from one restaurant to another. A simple issue of supply and demand that has made it virtually impossible for new restaurants to break in. Unless you’ve got the dough. 

“Paying half a million dollars, upwards of $750,000 dollars for a liquor license, no one can afford that. That is why there has been so much disinvestment,” State Sen. Liz Miranda said. 

Miranda has been one of the state lawmakers calling for reforms on this. Miranda represents the Second Suffolk District and said this is more than just about alcohol sales. 

“This is about dreams that become reality,” Miranda said. “This is about opportunity. This is about possibility. Communities that have thriving businesses which are the backbones of our community, are safer, they’re cleaner, they are healthier, for me I know this is the means of building a community that is full of thriving people and businesses and not just about offering people a cocktail.” 

How liquor license process could change

The state determines how many liquor licenses are permitted for Boston to distribute. 

On Tuesday, lawmakers from both the House and Senate announced a compromise to months of debate on this. 

They’ve agreed to grant 225 new licenses, which include 195 “restricted” licenses specifically allocated between Boston’s zip codes. That would keep that license in its assigned neighborhood, even if the business goes under.  

The goal, Miranda said, is to give communities of color a better chance at opening a new restaurant, in turn increasing economic opportunity in underserved parts of the city. 

The bill still needs final approval and is expected to hit the Governor’s desk by the end of the week.