“Make sure you cross your Is and dot your Ts” is the number one piece of advice experts give for those seeking a liquor license in Northern Kentucky.
Starting a business can be difficult, and there is so much excitement around picking the perfect space, hiring the right people and finding your customer base. But the not-so-thrilling stuff, like licensing, can be more complicated than one might assume.
With tons of new bars and restaurants popping up around NKY, we wondered: What is the process for a business owner to get a liquor license in Northern Kentucky?
How to start?
“It’s really not rocket science by any stretch of the imagination,” said Joe Ewald, the Fort Thomas administrator for the Kentucky Alcoholic Beverage Control, also known as ABC.
Ewald’s primary suggestion for those looking to get a liquor license is to “have a conversation with a local administrator pretty quickly before you before you jump into anything.”
Attorney Shelby Campbell, with Covington-based Smith Law, who has worked with local businesses like Second Story in Covington, said it takes at least 31 days for the ABC to approve a liquor license application.
However, things rarely go that smoothly, she said.
“I would suggest applying for a liquor license as soon as all of the preliminary requirements (registered business, physical premises, deed/lease, zoning permits, etc.) are met,” Campbell said in an email to LINK nky.
The owners at Second Story, which had to push back its grand opening six weeks due to licensing issues, highly recommend getting a local lawyer who knows their stuff.
What are some complications?
Cross river roadblocks:
Second Story’s parent company, Lost Co., mostly operates businesses in Cincinnati, including Somerset and Alice in Over-the-Rhine. Second Story general manager Lee Caldwell said they mistakenly assumed things would be the same in Kentucky regarding liquor licenses as they are in Ohio.
“I think sometimes we forget that that river is actually a state border, and laws change about 100 feet across the roadway,” Caldwell said.
The issues arose when they hosted a soft opening where alcohol was served before their license was approved. They had not charged for alcohol, which enabled them to do this previously in Ohio, but they soon found out it was not okay in Kentucky.
“That’s how we essentially ran afoul of the ABC,” Caldwell said. “And that mistake, you know, held it held our opening for a month and a half and we were very fortunate we didn’t lose any staff.”
Campbell, who started working with Second Story after the soft opening issue, said she always suggests businesses find a lawyer who knows local liquor licensing laws before starting anything.
“The process is much quicker and more cost effective when an experienced attorney is involved from the beginning,” Campbell said.
Second Story initially hired an attorney who, while licensed to practice in Kentucky, Caldwell said was more knowledgeable of Ohio law. In hindsight, he said they should have “partnered up with a local attorney that actually specializes in specializes and spirit law in Kentucky.”
“I always tell my clients that the practice of law is like car maintenance; it’s more economic to invest in preventative maintenance like an oil change than to replace the whole engine once the issue presents itself,” Campbell said.
Population complications:
Right now, Ewald said, a specific type of liquor license in Campbell County is pretty difficult to get.
Quota licenses traditionally pertain to liquor stores and allow the licensee to sell bottles of liquor and wine that can be consumed off-premises.
While they were typically given to liquor stores, Ewald said, many local bars and restaurants are looking to sell bottles and would need the license to do so.
The government limits these licenses based on population numbers, and, Ewald said, in his jurisdiction, “you can’t find one of those licenses right now.”
Those restrictions are not the same everywhere.
“Some cities and counties do have limits on the number of certain types of alcohol licenses,” Campbell said. “However this number varies from location to location.”
Location, location, location:
One of the most challenging mistakes Campbell said businesses can make is signing a lease or purchasing a building at a location that isn’t zoned for what they want to do.
The food issue:
Many bars serve food, and many restaurants serve alcohol, but each of those businesses can require different licensing.
Ewald said he often sees businesses face issues with not having the right license for their clientele. For restaurant licensees, “you have to bring in 50% of your profits from the sale of food.”
However, those requirements are different for bars.
Overall, the answer is: it’s complicated.
