Bill to ease liquor restrictions gets support from Arlington restaurateurs

ARLNOW
By Katie Taranto and Scott McCaffrey
Published February 6, 2025 at 2:45PM

​A state bill that would loosen restrictions on liquor sales is picking up support from members of Arlington’s restaurant scene.
Restaurants with mixed beverage licenses in Virginia are mandated to make at least 45% of sales from food and no more than 55% of sales from liquor-based mixed beverages. Senate Bill 1163 would lower the food sale requirement to 30%, allowing higher revenue percentages from liquor — something multiple restaurant owners told ARLnow they would welcome.
The current regulation, referred to as the “food-to-beverage ratio,” is the reason why no bars technically exist in Virginia.
Greg DeFlorio, a general manager at Ballston Local, told ARLnow that he supports a policy change on behalf of his peers.
“It would actually help some of the surrounding businesses that don’t sell as much food,” DeFlorio said. “I think food should always still be available to somebody that is drinking, but I think it would help businesses to lower that ratio a little bit.”
The legislation, DeFlorio noted, would not significantly affect Ballston Local, which typically sells about 60% food and 40% mixed beverages.
“We’re able to maintain a pretty good mix,” he added.
The legislation, patroned by Virginia Sen. Ryan McDougle, R-Mechanicsville, would apply to restaurants and caterers with monthly food sales of at least $4,000. The bill passed the Senate, 36-4 on Feb. 2, and moved to consideration in the House of Delegates.
The bill also mandates that restaurants have at least as many seats at tables as at counters, and prohibits licensees from serving mixed beverages once food is no longer being sold for on-premises consumption.
Courthaus Social owner Kaveh Safa supports a lowered food sale ratio, although similar to Ballston Local, his restaurant’s beer garden concept is not hindered by liquor sale limits.
“It doesn’t really affect us too much,” Safa said. “But I think at the end of the day, I mean, more flexibility for bar owners probably is not a bad thing.”
Local business groups have hesitated to weigh in on the topic, however.
The Virginia Restaurant, Lodging, and Travel Association — which has an Arlington-Alexandria chapter — aims to represent the interests of its industries statewide. It told ARLnow that it is “neutral” on the regulation, a similar response it gave WTVR after a policy briefing in December.
The Arlington Chamber of Commerce, meanwhile, lists support for “streamlined ABC laws that benefit restaurants” as part of its General Assembly policy positions — though the organization declined to comment for this story.
This is not the first time state lawmakers or business owners have attempted to change the ratio. Challenges date back about a decade, and most recently spang up last year, when a Portsmouth restaurateur sued Virginia ABC, WTKR reported.
A bill similar to SB 1163 by Virginia Sen. Bryce Reeves, R-Fredericksburg, won unanimous Senate passage in 2024, but failed to advance to a floor vote in the House of Delegates.
Critics of the food-to-beverage ratio often claim it inhibits small businesses and restaurants serving top-shelf liquors, or label it as antiquated. The original law dates back to 1968 and was more stringent. It counted beer and wine in alcohol sales and required 51% of restaurant sales to come from food.
The law as it currently stands has not been updated for 45 years.
Advocates of maintaining the ratio say it helps prevent alcohol overconsumption, and that restaurants have put resources and effort into meeting the current guidelines.
“That ratio is there for a reason,” Safa said. “I guess in Virginia, you know, they don’t want places just slinging only drinks.”
If passed by the House of Delegates and signed into law, the measure would be in effect through June 2027. It would require the Virginia ABC to collect data on compliance and report back to the General Assembly by November 2026.