Province cuts liquor costs for bars, restaurants

The B.C. government’s move to approve temporary measures to allow liquor licensees to purchase beer, wine and spirits at reduced cost, is being called a potential game-changer for struggling businesses.

The measure to help restaurants, bars and tourism operators, will be in place from the end of July 2020 until March 31, 2021, when the program will be reviewed.

Those businesses currently pay the full retail price on all liquor purchases – wholesale price, plus a retail markup set by the Liquor Distribution Branch (LDB), while the new model will have licensees pay only the wholesale price of the products they order.

“The hospitality industry has been one of the hardest hit during the pandemic, badly hurting the more than 190,000 British Columbians who work within the sector,” Attorney General David Eby said. “Offering a wholesale discount for licensees was something we were exploring before COVID-19, but after the onset of the pandemic we accelerated efforts in order to support these community businesses as they try to find their feet.”

The British Columbia Restaurant and Foodservices Association (BCRFA) said it is grateful for changes to the wholesale pricing model, calling it “the biggest change in a generation for restaurant operators in the province.”

“This is great news for our restaurants and the hospitality industry who have been greatly affected by a dramatic drop in revenue as a result of the COVID-19 pandemic,” Ian Tostenson, president/CEO, BCRFA, said. “The move to the wholesale model may truly save some restaurants who are on the verge of closing.”