DECEMBER 17, 2009 ISSUE
(More Than) One Year Later
What’s Changed Since Boone Voted in Liquor-By-The-Drink?
Liquor Sales, Tax Revenues—And DWI-Related Incidents—At All-Time High
Liquor sales and tax revenues are at an all-time high in Boone just more than one year after the mixed beverage referendum passed by an overwhelming margin. Restaurant owners are pleased with the addition to their menu offerings, but, unfortunately, local law enforcement has seen an uptick in DWI-related incidents in the town and county. Photo by Sam Calhoun
More than one year ago, Boone residents voted 1,106 to 408 in favor of allowing liquor-by-the-drink in restaurants and bars. The referendum took place on August 19, 2008, and the first mixed beverage slid across a Boone bar to a customer on August 29, 2008.
The overwhelming margin of victory for those in favor of liquor-by-the-drink capped years of debate in Boone over both the positive and negative aspects of adding mixed beverages to local menus. A reader recently summed it up well: “As you’ll recall, those in favor of mixed drinks touted the vast amounts of new tax revenues this would bring in, as well as an increase in the number of new and more upscale restaurants. Those opposed painted a dire picture of a significant increase in the number of DWI-related injuries/fatalities, spousal abuse, public drunkenness and alcoholism.”
High Country Press wondered what has changed since Boone voted in liquor-by-the-drink.
Increased Revenues?
Answer: Yes
Since the referendum, the Town of Boone administers a $3.75 tax per each fifth (one-fifth of a gallon) of liquor sold to restaurants and bars through the Boone ABC Store; in other words, restaurants and bars pay $3.75 more per fifth than walk-in customers. Boone receives this tax in addition to any profit made off each bottle of liquor from sales to local liquor establishments. Without even counting the tax, the actual sales of liquor to restaurants for mixed drink purposes tells a profitable story.
According to Boone ABC Store General Manager Ronnie Hayes, mixed beverage liquor sales totaled roughly $2,872 in July 2008—one month before the mixed beverage referendum was held—compared to approximately $69,808 in July 2009.
“That’s a significant increase,” said Hayes.
Looking at another cross-section, mixed beverage liquor sales totaled roughly $3,192 in August 2008—the first mixed beverage was served in Boone on August 29, 2008—compared to approximately $54,664 in August 2009, according to Hayes.
This increase in sales can also be seen in Boone’s general ABC revenues. According to Boone Finance Director Amy Davis, general ABC revenues for Boone for fiscal year 2007-08 totaled $411,470, and jumped to $532,966 for fiscal year 2008-09—an increase of $121,496, or more than 25 percent.
New Restaurants, New ABC Employees?
Answer: No
Supporters of liquor-by-the-drink said that Boone would witness an increase in the number of restaurants operating in the town if the vote was successful.
According to Davis, Boone has not witnessed an influx of new restaurants opening since liquor-by-the-drink was voted in, even though more business licenses were issued over the past year than the year prior. It should be noted, however, that the slumping economy over the past year could have also played a part.
Since August 1, 2008, Boone has issued 18 business licenses for restaurants, according to Davis, but a few were for transfers of ownership and a few were for establishments that don’t serve alcohol, such as Jimmy John’s. In comparison, Boone issued 12 business licenses between August 1, 2007, and August 1, 2008.
Supporters of liquor-by-the-drink also theorized that the Boone ABC Store would receive so much more business after the vote that additional employees would have to be hired to handle the influx. According to Hayes, his store has not had to hire any additional employees since the liquor-by-the-drink vote.
Increase in DWI-Related Incidents, Public Drunkenness?
Answer: Yes
Those in opposition to liquor-by-the-drink said passage of the referendum would bring about an increase in DWI (driving while intoxicated)-related incidents and public drunkenness.
According to Boone Police Capt. Jim Wilson, DWI-related incidents and aggravated assaults have increased over the past year in the Town of Boone. DWI arrests, said Wilson, are up 12 percent since Boone got liquor, and provisional license DWI arrests—residents between the age of 16 and 21 hold provisional licenses—are up 9 percent. Wilson said alcohol-related crashes are up 25 percent, and aggravated assault arrests are up 21 percent.
Spousal abuse cases, which Boone Police label as “domestics,” are up year over year, but Wilson said his department does not keep exact totals on file. Boone Police does not keep figures for public drunkenness arrests—called “24-hour holds”—for more than one year, said Wilson, so an exact comparison cannot be made.
According to Watauga County Sheriff’s Office Capt. Kelly Redmon, DWI-related incidents “ran about the same” over the past year when compared to the year prior, when Boone didn’t have liquor-by-the-drink. “But we’re still a fairly high DWI county,” he added. An increase in arrests for public drunkenness was negligible as well, said Redmon.
“I think [liquor-by-the-drink] was a bigger deal when it came about than it is now,” said Redmon. “I don’t think liquor-by-the-drink is that big of a deal, or will be, for the Town of Boone.”
Are Restaurateurs Pleased?
Answer: Yes
Just 10 days after Boone voters resoundingly approved the mixed beverage referendum, on August 29, 2008, a group of locals gathered at Makoto’s Japanese Steakhouse to partake in Boone’s first round of legal mixed beverages. Fifteen months later, Gwen Dhing, co-owner of Makoto’s, said her business hasn’t really changed that much since the vote and no issues have arisen due to the sale of mixed beverages.
“It’s not bad, it’s not good. It’s just there. Like beer and wine, it’s looked at as just another beverage choice for our customers,” explained Dhing. “We really don’t get a lot of liquor business—we’re still a beer bar.”
Beer seems to have more staying power than residents may have initially thought. According to Café Portofino Co-Owner Olga Esterson, liquor-by-the-drink is much more popular with the older clientele than the younger set.
“I think people here thought that liquor would become really popular with the younger folks, but mostly it’s the older folks who come in to have dinner and enjoy a drink with their meal,” explained Esterson. “The younger folks are still into beer.”
Esterson added that customers “don’t mind waiting for a table” if they can saddle up to the bar and enjoy a mixed beverage.
“[Liquor-by-the-drink] has been great for us,” said Esterson. “It has definitely made a difference in our business.”
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