PORTSMOUTH, Va. — A Portsmouth restaurant is the face of a group suing Virginia’s Alcoholic Beverage Control (ABC) over a rule it says goes against the state’s constitution.
Fish & Slips Marina Raw Bar & Grill says regulations set forth by Virginia ABC violate its 14th Amendment right to due process and equal protection. The guideline in question is the mixed beverage annual review (MBAR). For restaurants with a mixed-beverage license, no more than 55% of their sales may come from alcoholic drinks.
Attorney Mike Joynes is representing the group. In the lawsuit, Joynes’ team says MBAR regulations have roots in prohibition, writing, “Virginia and its counties were no exception to the struggles states had in regulating alcohol after the passage of the Twenty-first amendment to the constitution.”
Joynes told 13News Now, “The legislature wanted to make sure that we didn’t go back to the time of bars and saloons.”
However, local restaurants, including Fish & Slips, say it’s time for a change.
“It’s an illegal tax, in our opinion,” said Joynes.
The lawsuit against Virginia ABC claims MBAR regulations “no longer serves rational basis or achieve any lawful purpose.” It alleges the rule violates the “fundamental right of Virginia’s citizens to acquire and possess property on equal footing with the rest of the citizenry.” It also states the MBAR “adversely decreases competition amongst restaurants regarding food pricing without the mandatory oversight the Commonwealth and its agencies require. “
With rising prices, including in the food and beverage sectors, Joynes says local restaurants are left struggling.
“Restaurants have to meet a higher MBAR,” he said. “Which means more food has to be sold. Smaller restaurants, and mom and pop restaurants, they can’t make it. They can’t sell enough food."
Casinos, breweries, wineries, and distilleries are just a few establishment categories not required to follow the MBAR, though other guidelines regulate their transactions.
In response to a request for comment, Virginia ABC said it is aware of the litigation but the authority has not been served. Gov. Glenn Youngkin is also a named defendant. His office did not respond to a request for comment.
You can read the court filing below or by clicking here:
