When the legislative session opens this week, the largest issues looming for some of Connecticut’s bigger retail groups are the proposed expansion of liquor sales and the proposed increase of the minimum wage.
Gov. Dannel P. Malloy traveled to Enfield in January, using a site along the state line to propose a massive expansion of current state liquor sale laws. In addition to Sunday sales and other tweaks, the proposed legislation would change minimum pricing regulations and allow quantity discounts, among other proposals. The legislation would also allow bars and restaurants to serve liquor until 2 a.m. seven days a week, rather than just on Friday and Saturday nights. Currently, the cutoff is 1 a.m. the rest of the week.
The Connecticut Package Store Association has long opposed the expansion of hours and days of sale because of the burden it would put on its membership, largely comprised of smaller liquor store owners who claim opening Sundays would increase costs without substantial additional revenue.
In announcing the plan, the governor said industry estimates for Sunday sales range from 4 to 8 percent growth in overall sales for anywhere from $6.4 million to $11.2 million in new state revenue.
Josh Hughes, who represents the package store group at the State Capitol, said his association is in negotiations with the governor’s office. It’s not ready to publicly discuss those negotiations nor outline its views on the changes that were announced on Jan. 14.
One major change that could affect his membership is the increase in the number of liquor licenses one owner could have from two to nine as well as the creation of a medallion system for licenses that would allow owners to sell their permits on an open, statewide market.
Nicole Griffin, executive director of the Connecticut Restaurant Association, said her group remains neutral on Sunday liquor sales by package and grocery stores but is concerned by longer hours for restaurant liquor sales. “The majority of restaurants are not interested in longer hours during weekdays as proposed. Obtaining liquor liability insurance in Connecticut is very difficult and in some cases restaurants that stay open past 12 a.m. during the week currently are subject to higher premiums,” she said.
Also problematic for restaurant owners is Malloy’s proposal to basically eliminate minimum liquor pricing laws. “The proposal would also allow quantity discounts, meaning beer and alcohol distributors will be allowed to offer discounts to those customers who have the ability to buy in larger quantities,” said Griffin. “Our concern with this proposal is that restaurants do not have the ability to buy in the quantities that larger retailers may be able to buy in, and thus might then be subject to higher prices than they are currently paying.”
Another major issue looming for the restaurant industry would be House Speaker Chris Donovan’s proposal last week to raise Connecticut’s current minimum wage of $8.25 per hour to $9 per hour this year, $9.75 per hour next year and then be indexed in the years following.
“When the minimum wage is increased, so is the wage paid to servers and bartenders, as those wages are a percentage of the minimum wage,” Griffin said.
“Connecticut servers are paid as much as $3.46 more than some of our neighboring states and make well over double the current minimum wage with tips,” said Griffin, adding that her industry employs more than 145,000 people, making up about 9 percent of employment in Connecticut. In 2011, its projected sales were expected to be $5.6 billion in sales.
The Connecticut Retail Merchants Association does not have one particular focus for this legislative session but has many fronts it is eyeing, including the proposed change to the minimum wage laws.
“We are looking closely at what the finance committee is going to do, especially given the turn of the state budget,” said Tim Phelan, CRMA president. “We have gotten assurances from the co-chairs of finance committee that they are not looking to raise taxes this year but we still have to keep an eye on that. We would like very much to have the General Assembly eliminate the luxury tax to help our small store jewelers.”
CRMA will also be following any legislation from the governor’s two storm panel; proposed changes to health care; and any changes to paid sick leave.
Restaurant opens
The Wang Chinese Restaurant held a grand opening event at its location at 30 Berlin Rd., Cromwell. The restaurant is owned by Tai Vuong and specializes in Mandarin and Szechuan cuisine. It is open seven days a week and can accommodate large party orders. Among those attending its grand opening were Middlesex Chamber President Larry McHugh, state Rep. Christie Carpino, and Cromwell Selectman Allen Spotts. For more information, visit www.wangct.com.
