Province aims to modernize liquor licensing

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Proposed changes to Manitoba’s liquor licensing have “lots of positives,” says Brandon Chamber of Commerce president Barry Cooper.

Bill 38 is aimed at simplifying the province’s licensing system, with its many categories that require a full kitchen for some operators, entertainment for others and on-site hotel rooms for many.

One proposed change would eliminate the need for beverage rooms — a type of licence that does not require a full kitchen — to have hotel rooms on the premises. The current rules require a minimum of four rooms in small communities and 40 in Winnipeg and Brandon.

“These regulations haven’t been looked at in a very long time,” Cooper said. “I think just modernizing the whole process is a big part of this. Getting it sort of the same as other provinces where there is a lot more flexibility is another big part of it. People who want to be a little more creative in the ways they want to offer alcohol can do so.”

That extra flexibility could be of interest to entrepreneurs in the City of Brandon.

First introduced as a way of generating business for local foodservice establishments when their dining rooms were closed due to COVID-19 restrictions, the city has been operating a summer program that allows businesses to erect temporary patios on sidewalks and streets to serve customers.

That program is coming back this year.

Justice Minister Kelvin Goertzen said he wasn’t sure why that requirement was put in place almost a century ago after the end of Prohibition.

“There wasn’t a lot of close connection between the serving of alcohol … and a hotel situation,” Goertzen said Tuesday.

“I don’t think that the expectation was that … people needed a place to sleep at night.”

The idea was not well received by many hotel owners consulted by the government. They told the provincial regulator — the Liquor, Cannabis and Gaming Authority of Manitoba — they had invested a lot of money to meet the hotel-room requirement, the authority said in a written report on its consultations.

The bill would also let the provincial cabinet set up new categories of licences. That could pave the way for wine bars inside wine stores, Goertzen said. It would also make it easier for temporary summer outdoor bars, called “pop-ups,” to get a licence.

The changes, for the most part, were welcomed by the Manitoba Restaurant and Foodservices Association.

The group said competition from new entrants with less overhead could cause some problems, but the overall move to reduce red tape and make it easier to get a licence for modern alcohol distribution is a big plus.

“The problem is, is that these [current] licences really focus on business what it looked like 20, 30 years ago,” said Shaun Jeffrey, the association’s executive director.

Many restaurants could take advantage of the new flexible system to open temporary outdoor bars in the summer, Jeffrey said.

A spokesperson for the LGCA told the Sun via email Wednesday that while the regulatory framework still needs to be developed, it’s possible that businesses like food trucks may be able to serve alcohol as a result of the changes if certain concerns are addressed.

“Outdated barriers that currently exist in Manitoba’s liquor licensing framework and hinder entry to new business models will be removed. However, requirements that support the safe and responsible service of liquor remain necessary,” wrote LGCA communications analyst Lisa Hansen.

“For example, with respect to food trucks or other similar businesses, requirements related to secure access, location and safety must be followed. Food trucks operating on a public street would not meet requirements related to a secure area, whereas trucks operating within a licensed space or permitted event with controlled access may be considered for licensing.”

It’s not clear when the bill put forward by the Progressive Conservative government could become law. The legislature is scheduled to break for the summer next week.

» The Canadian Press, with files from Colin Slark at The Brandon Sun