Liquor Industry Update --------------------------------------------------------
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Liquor Industry Update:
May 30, 2024
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Dear ABLE BC members and industry colleagues,
Here's the latest news for the private liquor industry:
- LCRB Panel Discussion with ABLE BC, BCCBG, and BCRFA
- Call for LP Policy Committee Members
- Reminder: Minimum Wage Increases to $17.40 on June 1
- Electric Conversion Could Cost $800,000 per Kitchen
- ABLE BC's 20th Anniversary Celebration is Next Week!
- Last Chance to win a $200 Visa Gift Card
What you'll find in every newsletter:
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LCRB Panel Discussion with ABLE BC, BCCBG, and BCRFA
The Liquor and Cannabis Regulation Branch (LCRB) gathered nearly 200 of their staff from across the province in Victoria this week. As a part of this conference, David Hume, General Manager of the LCRB, invited ABLE BC, the BC Craft Brewers Guild (BCCBG), and the BC Restaurant Foodservices Association (BCRFA) to participate in a panel discussion followed by a meet & greet between LCRB staff and local liquor licensees.
ABLE’s Senior Communications Manager, Ann Brydle, and Head of Cannabis Membership, Bo Chen, sat on the panel alongside Thom Riley, General Manager of Vancouver Island Brewing and BCCBG Board Member, and Ian Tostenson, President and CEO of BCRFA. David Hume moderated a lively and productive discussion about the state of the liquor and cannabis industry and building relationships between licensees and LCRB staff.
All three associations emphasized the troubling state of our members’ businesses. While many of ABLE BC’s members are seeing a return to pre-pandemic sales volumes, profitability remains a struggle. Early Industry Benchmark survey results (take the survey before it closes tomorrow!) indicate that over 40% of ABLE BC's members are operating at a loss or breaking even.
Liquor and cannabis businesses are facing pressure from inflation, high labour costs, labour shortages, application delays and red tape, unfair BC Liquor Store retail practices, harsh punishments for MAP and other inspections, and shifting consumer habits – all of which are squeezing margins and disrupting operations.
As Yvan Charette, ABLE BC’s President, said in a recent Board meeting, “We’re in survival mode.” It’s a challenging time to run a business, and we’re grateful for the opportunity to educate LCRB staff on the severity of struggle our members are facing now.
We look forward to working with the LCRB on improving inspection processes, reviewing penalties, and finding ways to modernize and streamline applications.
If you have questions for ABLE BC about our work with the LCRB, please contact Ann at ann@ablebc.ca.
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Pictured left to right:
Thom Riley (VIB & BCCBG), Bo Chen (ABLE BC), Ian Tostenson (BCRFA), David Hume (LCRB), Ann Brydle (ABLE BC)
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Call for LP Policy Committee Members
Committee Chair, Owen Coomer (The Taphouse), has put out a call for new LP Policy Committee members.
Owen seeks ABLE BC members in good standing who own or operate Liquor Primary businesses across BC. The committee will meet regularly over Zoom to discuss and monitor issues specific to our hospitality members.
This committee plays an integral role in steering ABLE BC’s actions, policy priorities, and government relations work.
If you are concerned with any of the follow issues, please reach out to David Lough, Manager of Membership Services, at david@ablebc.ca to learn more about joining the LP Policy Committee:
- BC Lotto payout structure for bars and pubs
- Bottle service
- Brewery tasting lounges operating as LP’s
- Extending operating hours for special events like FIFA World Cup
- Maintaining license distinction between LPs and FP’s (Food Primary)
Participating in ABLE BC’s policy committees is an excellent way to get involved with our policy work, have an influence on our priorities, and support the Alliance.
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BC’s Hub for Workplace Mental Health
The Canadian Mental Health Association has created a resource hub for employers and employees dealing with mental health challenges at work.
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Cannabis Industry Update Newsletter
Sign up for our Cannabis Industry Update Newsletter to learn more about our advocacy for cannabis retailers. Click here to read past cannabis newsletters.
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ABLE BC
Member Portal
The Member Portal is your hub for all resources and benefits available to ABLE BC members. Contact david@ablebc.ca if you need help logging in.
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Reminder: Minimum Wage Increases to $17.40 on June 1
British Columbia’s minimum wage increases on June 1 from $15.75 to $17.40 per hour, a 3.9 per cent increase reflecting the average annual inflation rate in 2023.
In February 2024, government amended the Employment Standards Act so that future minimum wage increases will be automatic and tied to the previous year’s average inflation rate. This makes minimum wage increases predictable for businesses so you can more easily plan and budget for labour costs.
We understand that this minimum wage increase will have a serious impact on your business and profitability. Our industry is still struggling to recover financially from the pandemic, and high inflation continues to put undue strain on our members. We have repeatedly communicated with government that this is the wrong time to increase costs to your businesses.
Budget 2024, released earlier this year, addresses inflation and labour shortages for small and growing businesses by doubling the Employer Health Tax (EHT) threshold from $500,000 to $1 million. We hope that the increase to the EHT threshold will ease financial pressure on your business.
ABLE BC, along with dozens of other industry associations, have been advocating for this change since the EHT was first introduced. This change will make 90% of businesses exempt from the tax, which is estimated to save them more than $100 million a year.
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Electric Conversion Could Cost $800,000 per Kitchen
Earlier this year, ABLE BC joined the BC Coalition for Affordable Dependable Energy (BC CADE). This organization aims to draw attention to the need to keep affordable, dependable energy choices available to heat homes, cook food, and run businesses. BC municipalities are increasingly banning energy options (like natural gas) for new homes and buildings, which will raise energy costs and increase dependence on a single energy source.
A new report, commissioned by BC CADE and the BC Restaurant and Foodservices Association (BCRFA), has found that converting bar and restaurant kitchens from natural gas to electricity could cost $800,000.
The report looked at an existing Vancouver restaurant to understand the financial impact of converting equipment, including removing existing cooktops, stoves, piping, and patio heaters, renovations, and purchase and installation of electric equipment.
The estimated cost of conversions for a 3,500-square-foot restaurant is $450,810. Business interruptions during the conversion would have an additional impact, bringing the total to $800,000, on average.
“The BC Coalition for Affordable Dependable Energy believes that municipalities which are imposing natural gas and renewable natural gas bans years ahead of the provincial 2030 plan are going to cause serious negative economic impacts and job losses on restaurants but also on other small and medium-sized businesses – without any significant reduction in carbon emissions or any improvement in air quality,” said Bill Tieleman, Executive Director for BC CADE.
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ABLE BC's 20th Anniversary Celebration is Next Week!
We are pleased to announce that the Honourable Mike Farnworth, Minister of Public Safety and Solicitor General, will be joining our 20th anniversary celebration next week! You won't want to miss out on this opportunity to meet with government leaders and industry professionals.
Join us for a night of celebration, networking, and fun as we mark two decades of successful advocacy for the private liquor and cannabis industries.
Here's what you need to know:
- Date: Thursday, June 6th, 2024
- Time: 5:00 pm-9:00 pm
- Location: The Junction Pub, 1138 Davie Street, Vancouver
- Cost: free for members! Simply log in to the member portal to register at no cost. Non-members can join the fun for $25.
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What better way to celebrate an industry association with roots in the Neighbourhood Pub Owners' Association than with a pub quiz?
Test your knowledge and compete for awesome prizes! Whether you're a trivia buff or just in it for the fun, IQ 2000 Trivia's pub quiz will be a highlight of the night.
Gather your team, brush up on your trivia skills, and prepare for a fantastic time.
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Last Chance to win a $200 Visa Gift Card!
Don’t miss out on your chance to win a $200 Visa gift card! Take the 2024 Industry Benchmark Survey before it closes tomorrow, May 31!
Help us shed light on the challenges facing the private liquor industry in 2024. ABLE BC seeks to understand how your business is doing and what you expect in 2024. Your replies are vital to our research and advocacy work and will help us better advance the needs of the private liquor industry.
This survey should take less than 5 minutes to complete and is designed for all Licensee Retail Store (LRS) and Liquor Primary (LP) licensees in BC.
As a thank you for your participation, respondents will receive a free detailed analysis of this survey's findings.
Survey respondents who provide their contact information will be entered into a draw to win a $200 Visa gift card, generously provided by Andrea O'Leary of SONA.
The information you provide in this survey will be kept strictly private and confidential. Your responses will not be viewed on an individual basis but analyzed in aggregate form.
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Cannabis Corner:
North Saanich Council Meeting
Bo Chen, ABLE BC’s Head of Cannabis Membership, was on the island this week to attend a District of North Saanich Council Meeting to speak in support of opening up the municipality to licensed cannabis retailers.
North Saanich Council considered a zoning bylaw amendment that would permit a cannabis retail store in Sandown Park Shopping Centre. A public hearing on Monday, May 27 gave ABLE BC an opportunity to speak in favour of this amendment. Bo addressed council and highlighted that licensed retailers operate responsibly, ensuring that cannabis products are safe for adults and are kept out of the hands of minors.
Council voted in favour of the staff recommendation to give third reading to a zoning bylaw amendment that will allow cannabis retail at Sandown Park. We commend North Saanich Council on this decision and their support of opening the community to licensed, legal, and responsible cannabis operations.
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Bo Chen with the Cheeky's Cannabis Merchants team
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go2HR on Tap:
Celebrate Anti-Racism Week with EDI Training
go2HR is a regular contributor to the ABLE BC Liquor Industry Update newsletter, providing tips and guidance on current HR trends, new legislation, employee recruitment and retention, and more. To read the latest instalment, sign in to the member portal or sign up for the newsletter.
Join ABLE BC and go2HR in celebrating Anti-Racism Week from May 27 to June 2 by building and cultivating a respectful, diverse workplace.
Introducing the newest Equity, Diversity, and Inclusion training offerings, meticulously crafted to meet the evolving needs of workplaces like yours.
Equity, Diversity, and Inclusion (EDI) training will equip your team with the awareness, knowledge, and skills to cultivate workplaces that value diversity and promote respect and an appreciation for differences. Investing in EDI training signals a commitment to workplace inclusivity, where every voice is heard and valued, leading to greater well-being, job satisfaction, and retention.
Why Invest in Training?
- Tailored Solutions: these training programs are specifically designed to meet the unique needs of BC's Tourism and Hospitality employers, ensuring relevance and maximum impact.
- Flexible Delivery: Online courses help you fit training into your schedule.
- Results-Driven: A proven track record of success and decades of experience speaks for itself.
Ready to take your team to the next level? Explore go2HR EDI training programs and further your education to create a welcoming environment for your team.
go2HR, the HR and health and safety association for the BC Tourism and Hospitality Industry, has a wealth of free resources to support you. We invite you to connect with us to learn more about how you can support your employees at hr@go2HR.ca.
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Celebrating 20 Years of ABLE BC!
With our big 20th anniversary celebration only one week away, we’re continuing a look back over two decades of ABLE BC history with a focus on The Junction Pub.
For 15 years, Junction has been an active ABLE BC member, with Owner Vince Marino holding a seat on our LP Policy Committee, and one of Vancouver’s top queer entertainment destinations.
Junction brings vibrancy and fun to Davie Village in Vancouver, offering a wide range of daily specials and happy hour treats, truly something for everyone. Junction seamlessly combines the warm and inviting atmosphere of a community pub with the exhilarating late-night entertainment of a nightclub. So whether you’re seeking a relaxing after work drink on the patio or a lively late-night party, Junction is the perfect choice.
The Junction Pub proudly hosts community fundraisers, drag shows, special events, and is a frequent sponsor of local sports teams.
Vince relied heavily on our advocacy and support during the pandemic, saying that “ABLE’s help through the COVID-19 Pandemic closure and reopening was definitely an asset for The Junction.”
He continues “The advocacy, advice, and information you provided were key. And of the many policy changes you brought about, securing wholesale pricing on liquor was instrumental to our survival and a benefit to all venues.”
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Join us at The Junction Pub on June 6th to celebrate 20 years of successful advocacy, industry empowerment, and protecting members' investments!
- Date: Thursday, June 6, 2024
- Time: 5:00 pm-9:00 pm
- Location: The Junction Pub, 1138 Davie Street, Vancouver
- Cost: free for members! Simply log in to the member portal to register at no cost. Non-members may register for $25.
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Out and About with ABLE BC
Just one week out from our 20th anniversary celebration means that the ABLE BC team is busy with last minute planning and preparation to ensure the evening will be fun for all our guests! Did you know that your ticket includes two free drink tickets, free food, a photo booth, and a chance to win prizes with IQ 2000 Trivia's pub quiz? If you haven't RSVP'd yet, why not!
Of course the team is still working hard on several other projects while our Executive Director, Jeff Guignard, enjoys a few days of well-deserved vacation.
Bo Chen, Head of Cannabis Membership was on the island this week to speak at a District of North Saanich Council Meeting and sit on a panel discussion with the LCRB and Senior Communications Manager Ann Brydle (more on that above).
David Lough, Manager of Membership Services, and Ann met with ABLE BC's LRS Policy Committee to discuss strategies and progress on work we're doing on unfair retail practices, like flash sales and lack of transparency on exclusives, from BC Liquor Stores.
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Bo Chen and Ann Brydle in Victoria
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Save the Date: Upcoming Events and Webinars
Check out these upcoming events:
- ABLE BC’s 20th Anniversary Party, Vancouver, June 6
- Tether Budtender Sampling Event, Kelowna, June 9
- StratCann: Growing Relationships, Kelowna, June 10
- Grain to Glass Whisky Tasting, Vancouver, June 13
- BCHF Vancouver Golf Tournament, Vancouver, July 5
- BCHF Victoria Golf Tournament, Victoria, August 21
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Copyright © 2024
BC's Alliance of Beverage Licensees (ABLE BC)
200 - 948 Howe Street, Vancouver, V6Z 1N9 Canada
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