Drinking Problems

California certainly has an odd way off dealing with businesses that serve hard alcohol. Saturday's edition of the Claremont Courier had an article by Tony Krickl about the costs faced by a couple new restaurants in the Claremont Packing House.

Krickl tells us the owners of Hip Kitty Jazz & Fondue and Three Forks Chop House had to endure almost two years of lotteries and broker dealings before they got their licenses.

According to the article, the state Department of Alcohol Beverage Control (ABC), holds a lottery for the 25 new hard liquor licenses it issues each year in Los Angeles County. The 25 winners pay $12,000 for their licenses.

Everyone else has to then go through brokers who locate defunct businesses with active licenses. Three Forks' liquor license cost them $85,000, Krick reported.

As the FC Blog observed, the state seems to have allowed the creation of a market for liquor licenses with the primary beneficiaries being the license brokers. It certainly is an odd state of affairs.

Claremont sure could teach the state a thing or two about business regulation. All in all, it may be easier to open a medical marijuana dispensary in Claremont than it is to get a liquor license from ABC.