Liquor Industry Update: March 23, 2023
Dear ABLE BC Members and Industry Colleagues,
Here’s what you’ll find in today’s update:
Message from Jeff Guignard
ABLE BC Email Issues
Help stop this year’s excise tax increase on alcohol
TESA Authorizations Extended until December 31, 2024
Last Chance to fill out the LRS & NEW LP Benchmark Surveys!
BRCCC Unlimited Retail Returns Program Survey
ABLE BC Liquor Industry Meetings on Vancouver Island
ABLE BC Member Webinar Recording
BCHF Scholarship Program – Applications close March 31!
Save the Date: Upcoming Events and Webinars
Benefit Highlight: Foodbuy
Celebrating our Industry
Out and About with ABLE BC!
Join ABLE BC Today!
Find all past updates here.
Message from Jeff Guignard, Executive Director
Last week, I joined Restaurant Canada’s Mark von Schellwitz at a meeting of the LCRB’s Compliance and Enforcement officers and senior management team. Mark and I presented data on the current state of BC’s liquor and hospitality industries, and offered on-the-ground insights directly from members about recent experiences and concerns.
While the pandemic is behind us practically, recent industry data shows many of you are still struggling to recover financially. While stats only tell part of the story, we wanted inspectors to understand how hard industry is working just to keep their businesses afloat. For example: both liquor retailers and liquor primaries are seeing profit margins squeezed by rising costs, and 40 per cent of BC’s hospitality businesses are still losing money or barely breaking even. Add in the ongoing labour crisis as well as repayments of pandemic debt, and most LPs report operating at about 80 per cent of their pre-pandemic capacity.
For further context, I shared your stories of common concerns, such as inconsistent interpretation of liquor policies or the frustration of an inspector dropping in late on a busy weekend night asking to see your liquor registry. While I know members always strive to fulfill their obligations to share that information, it is obviously impractical for a busy bartender to produce paperwork during a peak period.
I also highlighted the challenges of being responsible for an employee’s honest mistake, such as an LRS employee selling to a minor after the licensee has taken every practical step to ensure compliance—including training, clear store policies that the employee signs off on, secret shops, and even a “Did you check ID?” prompt embedded in your point-of-sale.
I also shared your feedback that some policies—such as the requirement for LPs and FPs to sell food with take-away or delivery alcohol—appear to be enforced insufficiently. As we noted in a recent newsletter, it is vital that industry comply with these rules or risk losing this permission permanently.
Overall, I’m happy to note that the LCRB’s team struck me as engaged, informed, reasonable, and interested sincerely in understanding our industry. However, it is important to remember that their job is to ensure strict compliance with BC’s liquor laws and policies. For example, members report that the LCRB’s Minors as Agents Program has resumed active inspections. We urge all licensees to review their current policies and training to ensure compliance with common issues such as:
Always ask for two pieces of ID if a customer is not obviously of-age,
Remember it is an offence to call attention to a liquor inspector in your establishment, and
Have adequate controls in place to ensure you stay within your liquor licensed capacity.
We’ll have more information on how to enhance compliance in the coming weeks. In the meantime, if you are experiencing issues with your local liquor inspector, or have inspection concerns you’d like us to help address, please feel free to email me directly at jeff@ablebc.ca
ABLE BC Email Issues
We have been experiencing email issues for the past few weeks and have not been able to communicate over email with some members. If you have reached out to us recently but haven’t heard back, please call Ann Brydle, Manager of Membership and Communication, at 604-688-5560.
If you haven’t seen the latest Industry Update Newsletter or other emails from us recently, please be sure to check your junk folder, save ann@ablebc.ca and jeff@ablebc.ca in your contacts, and reach out to us if you have any questions.
Having trouble seeing images in our newsletter or other emails? Make sure to add us to your contacts or check the settings in your email provider to make sure images are downloaded or to show blocked content.
Help stop this year’s excise tax increase on alcohol
As you likely know, on April 1 the Government of Canada is set to increase federal excise duties on alcohol by 6.3 per cent—the largest increase in over 40 years. On your behalf, ABLE BC has been working behind the scenes with partners such as Beer Canada to see this tax increase halted or capped while industry is still recovering financially from the pandemic.
In response to industry’s concerns, on March 22, Conservative Members of Parliament introduced an Opposition Motion in the House of Commons calling on government to cancel this tax increase. While the motion is non-binding, it passed in the House by a vote of 170 to 149, showing clearly that most Parliamentarians agree this is the wrong time to increases taxes on alcohol producer.
To stop this tax increase, we need your help. As the federal government prepares to release its Budget 2023 on March 28, this is our last opportunity to see cancel this tax increase.
Please write to your Member of Parliament today to ask them to halt this unfair tax increase on beer, wine, and spirits.
You can find your local MP's contact information here.
TESA Authorizations Extended until December 31, 2024
We are pleased to share that the General Manager of the Liquor and Cannabis Regulation Branch (LCRB) is extending the existing Temporary Expanded Service Area (TESA) authorizations to December 31, 2024!
“Pandemic patios and temporarily extended service areas aren’t just popular with British Columbians,” says ABLE BC Executive Director, Jeff Guignard. “They’ve helped keep BC’s pubs and bars afloat during the toughest of times. Extending the TESA deadline means we can keep serving customers while we catch up on the paperwork needed to make these areas permanent. We’re immensely grateful to our government partners for listening to our needs as we struggle to recover financially from the pandemic.”
ABLE BC worked in partnership with industry associations such as the BC Restaurant and Foodservices Association (BCRFA) and Restaurants Canada to secure this extension. We extend our sincere thanks to government for understanding the importance of extending this deadline for industry.
TESAs have played a key role in pandemic recovery, enabling thousands of liquor licensees to create or expand outdoor service areas, giving patrons more space to gather. The ongoing stress and pressure of labour shortages, inflation, and pandemic recovery has created a barrier to submitting structural change applications for many licensees. This extension allows your business to get your structural change application in now so you can continue operating your patio without disruption.
Without this extension, many licensees would be faced with removing their temporary patios just as the busy summer season begins. Now, licensees with temporary patios have enough time to submit structural change applications to make these service areas permanent.
If you have built a patio or other extended service area under the TESA authorization, you must apply for a permanent structural change to make this a permanent fixture of your establishment.
Structural change applications can take up to 10 months to process, so we strongly encourage you to start the application process now.
You can find more information on how to apply on the LCRB’s website.
Please note, not all TESA authorizations will be viable permanent patios. Before you apply and pay the fee, it is your responsibility to work with your local government and authorities to make sure the TESA you want to make permanent complies with all local permits, guidelines, bylaws and requirements.
To apply as a Liquor Primary or Food Primary licensee:
Log in to the liquor and cannabis licensing portal with a BCeID
Go to the "Licences and Authorizations" dashboard and find the licence you want to change
Select:
"New Outdoor Patio" for an outdoor TESA, or
"Structural Change Application" for an indoor TESA
Complete the application
If you have questions about your expiring TESA or applying for a permanent structural change, we encourage you to contact a liquor licensing consultant. Check out the ABLE BC Buyer’s Guide for recommended consultants.
You can reach out to LCRBLiquorPolicy@gov.bc.ca if you have questions about the TESA policy.
Click here to read more about the TESA deadline extension from the LCRB.
Last Chance to fill out the LRS & NEW LP Benchmark Surveys!
Tomorrow is the last day to participate in these surveys and do your part to help develop KPIs and benchmarks for our industry. All surveys will close end of day on Friday, March 24, 2023.
Since 2018, ABLE BC in partnership with Paul Rickett of VARKeting! has conducted an annual LRS Benchmark Survey.
As BC’s private liquor industry association, ABLE BC works to collect data for our membership and create an economic snapshot of our industry. We survey our private liquor store members on an annual basis to help develop KPIs or benchmarks for your business.
This year, we have re-vamped our LRS Benchmark Survey. The LRS survey now comes in two versions: for independent storesand chains.
We have introduced the brand new LP Benchmark surveys(one for independent establishments and one for chain establishments)!
Aggregate data results will be shared with members and in the Quarterly Pour. Individual results and any business information shared will be kept confidential.
LRS Benchmark Survey - Independent Stores: This survey is intended for independent liquor stores that do not share ownership with any other store. The information collected in this survey will be used to measure key benchmarks in our industry and how trends develop year over year.
LRS Benchmark Survey - Chain Stores: This survey is intended for chain liquor stores that share ownership with other locations, whether under the same brand or not. The information collected in this survey will be used to measure key benchmarks specific to LRS chains and how trends develop year over year.
LP Benchmark Survey - Independent Establishments: This survey is intended for independent Liquor Primary establishments that do not share ownership with any other store. The information collected in this survey will be used to measure key benchmarks in our industry and how trends develop year over year.
LP Benchmark Survey - Chain Establishments: This survey is intended for chain Liquor Primary establishments that share ownership with other establishments, whether under the same brand or not. The information collected in this survey will be used to measure key benchmarks specific to LP chains and how trends develop year over year.
If you have questions or concerns, please contact us at ann@ablebc.ca.
BRCCC Unlimited Retail Returns Program Survey
ABLE BC has partnered with the Brewers’ Recycled Container Collection Council (BRCCC) to bring our retail members the Unlimited Retail Returns Program.
We understand that accepting empty container returns can pose challenges to LRS operators, including labour constraints, space issues, and health concerns. We have heard that some LRS businesses have not begun accepting empty container returns again after pausing this service during the pandemic. We encourage all LRS businesses to begin accepting empty container returns immediately. According to the Recycling Regulation (Schedule 1, section 6), all LRS businesses are obliged to accept up to 24 empty containers per customer per day.
ABLE and the BRCCC are seeking to make accepting empty container returns easier for LRS businesses. To help us better understand your needs, please fill out this survey before Friday, March 24, 2023.
Your participation is greatly appreciated. We will provide updates as they are available.
ABLE BC Liquor Industry Meetings on Vancouver Island
Now that spring is just around the corner, it’s time for ABLE BC’s Executive Director Jeff Guignard to start planning his annual tour of BC! Join us for a liquor industry meeting in your community throughout the spring and summer and meet with ABLE members and industry colleagues.
The first leg of Jeff’s tour takes place in April throughout Vancouver Island. Stay tuned for more information on meetings taking place in the Okanagan, Kootenays, Northern BC, and Lower Mainland.
These meetings are open to owners, managers, and staff members from pubs, bars, nightclubs, hotels, and liquor stores. We are inviting both ABLE BC members and non-members, so please pass this invitation along to your hospitality and retail colleagues.
Join Jeff to learn more about ABLE and let us know what your issues and priorities are.
Have you had issues placing or receiving orders from LDB?
Have you read the Terms and Conditions handbook for your license type?
Do you have questions about excise tax or risks associated with decriminalized drugs?
Do you have concerns about your liquor license?
Have you had a visit from a liquor inspector recently?
What is ABLE BC and how do we work?
What are the current benefit programs available from ABLE BC?
Come see Jeff on Vancouver Island:
Langford on Monday, April 17
10:00 am to 12:00 pm
Liquor Planet, 2317 Millstream Road
Nanaimo on Monday, April 17
3:00 pm to 5:00 pm
The Quarterway Pub, 1431 Bowen Road
Courtenay/Comox on Tuesday, April 18
10:00 am to 12:00 pm
40 Knots Winery, 2400 Anderton Road
Campbell River on Tuesday, April 18
3:00 pm to 5:00 pm
Venue: TBD
Tofino on Thursday, April 20
10:00 am to 12:00 pm
Long Beach Lodge Resort, 1141 Pacific Rim Highway
Do you want to host a liquor industry meeting? Reach out to Ann Brydle, Manager of Membership and Communication at ann@ablebc.ca.
Out and About with ABLE BC!
This week ABLE BC and Lorne Folick, hosted a webinar to aid Liquor Primaries understand their duty of care with BC's decision to decriminalize small amounts of certain drugs. Lorne's law expertise in liquor liability and hospitality risks proved vital to this conversation. If you would like a copy of the webinar, please reach out to ann@ablebc.ca.
Last week, Ann attended the SBOT Business Excellence Awards with our office buddy, Karissa from BCHA. These awards celebrated phenomenal women in business and were headlined by keynote speaker, renowned activist, Chantal Kreviazuk.
Spring has sprung at the ABLE office! Jeff & Caitlin are spending this week spring cleaning our downtown office and giving it the facelift we've been looking forward to since returning to in-person workdays.
ABLE BC in the media:
Feb 24 Business in Vancouver: Alcohol tax hike set to raise B.C. retail prices April 1
Mar 11 e-know.ca: More time for businesses to make outdoor patios permanent
Mar 14 Global: News Hour at 6
Mar 13 CFAX 1070: Adam Stirling – Deadline extended for permanent patios
Mar 17 CKNW Mornings with Simi: How bars and pubs are preparing for a great St. Patricks day