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New liquor law gives smaller restaurants a boost

Small restaurants in Delaware can now sit at the same table with their larger counterparts when it comes to liquor sales.

Until now eateries hoping to serve alcohol to their customers had to be able to accommodate a minimum of 35 patrons.

But House Bill 16, signed into law Monday by Gov. Jack Markell (D–Delaware), cuts that minimum number by more than half to 12 patrons, and smaller restaurants are counting on the change to Delaware’s liquor laws to help them compete with bigger competitors.

Rep. Paul Baumbach (D–Newark) was the bill’s primary sponsor in the House.  He says strong support for the measure shows a clear recognition that small restaurants are important to the local communities where they operate.

“What we’re offering is the balance their abilities to compete against the larger guys – which are wonderful also – but let’s level that playing field," said Baumbach. "So we said ‘We can make a pretty small change in a law that’s going to make a big difference for these small companies.’”

Donna Papanicolas is co-owner of the Mediterranean Grill in Newark with her husband Akillas, where Gov. Markell stopped in Monday to sign the law.

Credit Karl Malgiero/Delaware Public Media
Surrounded by Rep. Paul Baumbach (left) and Sen Dave Sokola, Gov. Jack Markell greets Donna and Akillas Papanicolas, owners of Newark's Mediterranean Grill, after he signed HB 16 into law Monday.

She contacted Rep. Baumbach and Sen. Dave Sokola (D – Newark) in November explaining she was losing business to larger restaurants in her area – some less than a block away - that were able to offer what she couldn’t for no other reason than the size of her location.

“This kind of levels [the field]. It’s huge for us because more people will come. I’ve had so many people call us on the phone to see if we had a liquor license," said Papanicolas.  "We’ve had people come in and leave because we didn’t have it, or we’ve also had people just come take it and say ‘We’ll take it home and have our own.’”

The state also stands to benefit from the change as revenue from fees – $1,000 every two years, or $1,500 every two years if serving alcohol on Sunday - should increase as more restaurants look to add alcohol service.

Restaurants will still have to comply with local regulations though, and Papanicolas - while pleased with the swift passage of the state law - has petitioned the city of Newark to waive their 50 seat minimum for her location.

“I don’t think we’re going backwards,” she said of the continuing process of wading through red tape. “I just think its going to take a little more time than I wanted it to, but I think within a month or two, we should be good. I think so.”