It’s now in Governor Abigail Spanberger’s hands to decide on a new bill that could change how bars and restaurants operate in Virginia. The Virginia Senate recently voted to modify the long-standing “45-percent rule,” which required establishments serving liquor to get at least 45% of their sales from food.
The new bill, HB975, proposes a tiered system. This means that the more food a restaurant sells, the less strict the food-to-liquor ratio becomes. For example, restaurants making between $25,000 and $48,000 in monthly food sales would only need to maintain a 30% ratio. Those earning over $48,000 in food sales wouldn’t have to meet any specific ratio at all.
However, establishments with less than $25,000 in monthly food sales must still adhere to the 45% rule. But if they are small—having fewer than 30 seats—they would only need to maintain a 30% food-to-liquor ratio.
Efforts to change this rule date back at least to 2014, with previous bills falling short. Elizabeth Bennett-Parker, who champions the current bill, believes it will modernize the law to reflect current market trends. She noted, “Many consumers prefer places that focus on craft cocktails and unique spirits. Meeting the 45% ratio can be nearly impossible for these businesses, given the high costs of ingredients.”
In recent years, the restaurant industry has seen notable shifts. According to the National Restaurant Association, nearly 73% of consumers surveyed in 2022 expressed interest in dining at establishments known for their cocktails. This is a significant jump from just a decade ago.
Bennett-Parker’s initiative has garnered support from various stakeholders, including the Virginia Restaurant, Lodging, and Travel Association. Their director, Tommy Herbert, emphasized that this change would be beneficial not just for restaurants but also for licensed hotels.
This bill isn’t the only change happening in Virginia’s alcohol laws. Other measures are pending that would allow distilleries to increase the amount of spirits they serve in tasting rooms, moving from 3 ounces to 4.5 ounces per customer.
As the bill awaits the governor’s decision, it reflects shifting consumer preferences and the need for state laws to keep up with modern dining trends.
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