Legislation Details

File #: WS 22-039    Version: 1 Name: Proposed Definition Amendment - Restaurant
Type: Workshop Item Status: Agenda Ready
File created: 4/11/2022 In control: City Council Workshop
On agenda: 4/11/2022 Final action: 6/30/2022
Title: Proposed Definition Amendment - Restaurant
Sponsors: Catherine Sorensen
Attachments: 1. IpourIt Demonstration Video

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.