Workshop Item Cathy Sorensen, City Clerk
Title
Title
Proposed Definition Amendment - Restaurant
end
Background
Council is asked to consider a proposed amendment to the definition of a restaurant in Chapter 6, Sec. 6-33, to allow for more limited food options in conjunction with a new on-sale wine/strong beer license.
Staff has been approached by a group who would like to open a self-serve “tap house” for beer and wine. Their business will partner with IpourIt to provide technology to self-pour of a variety of craft beer, hard seltzers, and wine. Their business model caters to customers interested in sampling many different varieties of beer and wine and will use technology that:
• requires customers to scan a government-issued ID for age verification
• has customers swipe a credit card to start their tab
• pairs the customer with a unique RFID device in the form of a card or wristband.
• uses a wristband or card to scan the tap of their choice to begin to pour their own beverage
• is designed to prevent overconsumption. The taps will automatically stop pouring upon a customer reaching the 32 oz. limit of beer or 10 oz limit of wine. The customer must check in with a manager or employee to be reactivated for more ounces based on the jurisdiction regulations.
While at this time the group is only requesting a beer and wine license, they may in the future consider applying for a full on-sale intoxicating license to be able to offer premixed cocktails in a specialized keg and serve it through the tap on the beverage wall as well. If allowed the same technology would apply to objectively and automatically discontinue service of a patron upon reaching 3oz of liquor which then the patron would check in with a manager or employee to be reactivated for more ounces based on the jurisdiction regulations.
Staffing will include three employees and a manager working at any given time:
• An employee will be at the entrance to ensure all customers are scanning their ID and credit cards. This employee will issue the RFID device to the customer.
• An employee will be stationed around the taps to explain the technology to new customers. This employee will also ensure freshly cleaned glasses are always available.
• The third employee will assist with taps, glasses and food.
The proposed business model does not include a restaurant or full kitchen. Their wish is to serve already-prepared food items onsite and partner with local restaurants to have customers order food for delivery. Below is the current definition of a restaurant in City Code:
Restaurant means an eating facility, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises, where full waitress/waiter table service is provided, where a customer orders food from printed menus and where the main food course is served and consumed while seated at a single location. To be a restaurant as defined by this term in this article, an establishment shall have a license from the state as required by Minn. Stat. § 157.16. With the exception of a brewer taproom license, all restaurants shall derive a significant portion of their gross sales revenue from food.
State Statute definition differs slightly from City Code:
340A.101 DEFINITIONS.
Subd. 25.Restaurant.
“Restaurant" is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises and served at tables to the general public, and having a minimum seating capacity for guests as prescribed by the appropriate license issuing authority.
As Statute only allows cities to issue onsale wine/beer/intoxicating liquor licenses to restaurants, in order to allow for this type of business model the current definition of a restaurant could be amended to match Statute and remove reference to providing full waitress/waiter table service and ordering food from printed menus:
Restaurant means an eating facility is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises, where full waitress/waiter table service is provided, where a customer orders food from printed menus and where the main food course is served and consumed while seated at a single location and served at tables to the general public, and having a minimum seating capacity for guests as prescribed by the appropriate license issuing authority. To be a restaurant as defined by this term in this article, an establishment shall have a license from the state as required by Minn. Stat. § 157.16. With the exception of a brewer taproom license, all restaurants shall derive a significant portion of their gross sales revenue from food.
Matching the definition from Statute would still allow an applicant to meet the requirements of a restaurant in order to be able to apply for a liquor license but lessen the level of food required and allow for food options such as pre-packaged items and delivery. As currently required prior to issuance of any liquor license is proof of a food establishment license from Anoka County to allow the service of meals, sandwiches, snacks and similar foods. It should be noted that the service of food will require hard-plumbed handwashing/ware washing stations and a possible hood in order to obtain the appropriate level of licensing from Anoka County.
As part of the discussion, Council may wish to consider the following points:
• Percentage of food/alcohol - will this business model be able to meet the requirements of having a significant portion of their gross sales revenue from food and if not, is that acceptable to Council
• Can food be brought onto the premises to satisfy the food component
• Impacts to current restaurants, “paint and sip” locations, and others
Staff Recommendation
Council is asked to provide input on the proposed amendment to the definition of a restaurant that would allow for this type level of food as part of issuance of an on-sale wine/beer license.
Attachment List
None.