Tuesday, March 19, 2024–9:50 a.m.
-David Crowder, WRGA News-
The Rome Alcohol Control Commission is recommending setting a standard price for the 50-50 food-to-drink ratio.
The action comes at the request of Billy Newby, owner of Newby Farm and Winery Tasting Room at 411 Broad Street. During a previous ACC meeting, Newby explained that his establishment, in addition to beer and wine, specializes in high-end bourbons. These products carry a high price and as such, he has more difficulty in meeting Rome’s food-to-drink ratio. He explained that if the average price of his drink is $35, then he must sell considerably more food than another establishment that is selling the same quantity of alcohol for $7 to $10 per drink. Newby fears as his bourbon sales grow, it will become impossible to meet the ratio.
According to Rome City Clerk Joe Smith, the objective of standard pricing is to not penalize small bars that sell higher-end products.
“We’re not talking about setting the price of drinks,” said Smith. “Each establishment would continue to set the price of drinks and they will continue to pay the corresponding mixed-drink tax for whatever price they set. We’re talking about a standard price for the food-to-drink calculation. The benefit is that it would assist some folks, especially those who have higher-priced products. They may sell a $15, $20, or more drink and that’s just more food to offset the same amount of alcohol.”
As far as specific numbers, Smith feels it is best to work with round numbers, so he recommended $7.50 for an ounce-and-a-half pour and $10 for a two-ounce pour as a standard price. That is basically $5 per ounce.
“I’m not saying that’s an industry standard, but I think that’s a realistic number,” Smith said. “
According to Smith, there are some establishments that will have no interest in the standard prices, because they already meet the food-to-drink ratio by a substantial margin.
“It will have no impact on them,” Smith added. “They won’t have to change how they are reporting. So, every place can continue to report their actual drink sales or use the standard pricing, if this measure clears the city commission.”
Smith told the ACC that as far as he knows, Rome would be the first city to adopt a standard price for the food-to-drink ratio.
“There’s nothing wrong with a city being the first to do something if it’s a good idea,” he said.
Unless a variance is granted, establishments in the City of Rome that sell distilled spirits by the drink must also be a restaurant, selling at least as much food as liquor. The ratio does not apply to beer and wine.
The recommendation for the standardized pricing will now go to the full Rome City Commission for a vote.
