2016 Progress Report RAISE THE BAR A progress report on activities since the Raise The Bar report card on provincial liquor policies for restaurants and bars in November 2015.
2 2016 PROGRESS REPORT RAISE THE BAR TABLE OF CONTENTS 2 3 3 3 4 4 4 5 5 5 ATLANTIC CANADA Newfoundland and Labrador Prince Edward Island Nova Scotia New Brunswick CENTRAL CANADA Quebec Ontario WESTERN CANADA Manitoba Saskatchewan Alberta British Columbia In November 2015, Restaurants Canada released Raise the Bar, a report card on provincial liquor policies for restaurants and bars. Provinces were graded on licensee pricing, how well their regulatory environment helped the foodservice industry deliver good service and a positive customer experience, and government s willingness to work with the industry. Over the past year, Restaurants Canada has used this report card and campaign as a tool to pressure governments to reduce barriers for licensees and make it easier for them to serve their guests. Below is a summary of our action and results since the report was released. NEWFOUNDLAND AND LABRADOR (Original Grade: F) After getting a failing grade, the Newfoundland Liquor Corporation contacted Restaurants Canada about spearheading a Licensee Working Group (LWG) to improve the system. The LWG has just begun its work, but positive changes are already taking place: Licensees get two-weeks notice of any price increase (a long-sought after change). Licensees receive a quarterly newsletter. Licensees get information on new listings, including electronic ordering and payment. Random inspections during peak hours to only focus on service to minors, safety and over-service, rather than administrative and routine paperwork issues. A $2 fee per bottle on special orders was eliminated.
2016 PROGRESS REPORT RAISE THE BAR 3 PRINCE EDWARD ISLAND (Original Grade: B-) Restaurants Canada has drawn on its good relationship with P.E.I. Liquor Control Commission (PEILCC) and lobbied for more positive changes: Department officials can now grant a liquor licence, which reduces the average wait time by nearly a month. A Dining Room Licence allows restaurants to provide limited background entertainment. The licensee fee for alcohol off-sales from restaurants is reduced to $50. Licensees have electronic access to liquor licence applications, personal history reports and licence payment. NOVA SCOTIA (Original Grade: C+) Restaurants Canada s strong working relationship with both the Alcohol and Gaming Division (AGD) and the Nova Scotia Liquor Corporation has led to more good news for the industry: Lounge operators only need a maximum occupancy level from the Fire Marshall, and not the AGD as well. This eliminates a second inspection and reduces confusion. Licensees have more flexibility on when a restaurant (including minors, foodservice required) can convert to a lounge (no minors, foodservice not required). Manufacturers can sell their products and allow sampling in liquor-licensed areas in the restaurant without needing a separate retail area. Restaurants Canada is continuing to push the government to allow restaurants to sell drinks without a meal and sell Nova Scotia wine for off-sale. We are also fighting to eliminate the 105 geographic areas where alcohol sale is prohibited. NEW BRUNSWICK (Original Grade: C-) Restaurants Canada has used its positive relationship with both the regulator and New Brunswick Liquor (ABNL), but progress is slow for licensees: We worked with the Department of Public Safety to develop legislative changes that will make it easier for licensees to serve their customers and operate their businesses. Our proposal has not yet been added to the legislative agenda due to a lack of political will. We worked with ABNL to introduce a licensee wholesale discount program. Technical issues have delayed this program. We will continue to push both initiatives forward.
4 2016 PROGRESS REPORT RAISE THE BAR QUEBEC (Original Grade: C+) Restaurants Canada has brought about positive change in Quebec, with potential for more good news in 2017: Licensees get promotion rebates on a limited number of specific wine and spirits products of between six and 12 per cent, a first step in Restaurants Canada s long-term goal of achieving licensee wholesale pricing. The government s red tape reduction plan may remove the costly and administratively burdensome process of bottle stamping. A modernized liquor licence system, with legislation expected in 2017, may also include other government commitments such as: a single liquor licence per establishment; remove need for bar fridges to be locked after hours; allow drinks to be served without a meal; allow pre-mixed cocktails; and permit minors to remain on patios with adults until 10 p.m. ONTARIO (Original Grade: D+) Restaurants Canada has reignited its relationships with the Alcohol and Gaming Commission of Ontario (AGCO) and the LCBO. We achieved good news for licensees: Licensees who buy small amounts of beer from The Beer Store can get a rebate equal to the difference between the retail and licensee price, which saves licensees about $5 million a year. Co-distribution of craft beer from different companies is allowed, which should ultimately benefit our members. Restaurants Canada is part of the government s consultation on social responsibility, and has been promised that licensees will not see operational changes such as the requirement to put up mandatory posters and warning labels. The government has made some changes on the retail side, which loosens control and shows an openness for further change in our industry. MANITOBA (Original Grade: C) With a new government coming into power, progress on the liquor front has been slow: Recently adopted new rules encourage growth of micro-breweries. Licensees will have a greater selection of locally produced micro-brews to offer guests. Restaurants Canada is leveraging the new Tory government s focus on finance, red tape and labour laws to push for a differential liquor server wage.
2016 PROGRESS REPORT RAISE THE BAR 5 SASKATCHEWAN (Original Grade: D+) Following a poor grade, Saskatchewan is taking steps to improve the environment for licensees: The privatization of liquor retailing at the end of this year will mean uniform true wholesale pricing for all liquor retailers. Although restaurateurs will not be able to buy beverage alcohol from the Saskatchewan Liquor and Gaming Authority (SLGA) at a wholesale price, they can purchase liquor from any retailer in the province at a price they negotiate. Restaurants Canada and our industry has actively participated in all discussions leading to this change. We continue to push the government to extend wholesale pricing to all licensed foodservice operators on the same full-case lot basis as liquor retailers. ALBERTA (Original Grade: B+) The newly elected NDP government cancelled a comprehensive liquor review set for the summer of 2015, but Restaurants Canada worked with the Alberta Gaming and Liquor Commission (AGLC) to bring about positive changes for licensees: The liquor advertising and promotions policy is simplified. The 8 p.m. limit on happy hours is removed. Licensees have blanket approval for early liquor service (starting at 8 a.m.) during the Calgary Stampede. Restrictions on patio hours of service, consumption and entertainment are removed. BRITISH COLUMBIA (Original Grade: C+) Positive changes for licensees have been introduced since our report was released: Alcohol can be served in any establishment without a meal. There is less red tape for liquor licensing on patios. 24-hour liquor service is allowed in hotel rooms. The government is looking at the financial feasibility of wholesale pricing options, including Restaurants Canada s push for a flat tax markup structure. Restaurants Canada is also part of consultations on inducements, proposed changes to liquor and food primary licensing requirements, patio liquor licensing, and mandatory social responsibility posting requirements.
6 2016 PROGRESS REPORT RAISE THE BAR NOVEMBER 2016 Phone 1-800-387-5649 Web RestaurantsCanada.org E-mail info@restaurantscanada.org Twitter @RestaurantsCA Facebook RestaurantsCanada