VIRGINIA, USA — The decade-old discussion about what to do with the state's food-to-beverage ratio could be heading back to Richmond, as state lawmakers heard the points for and against the standard.
According to Virginia law, restaurants cannot earn more than 55% in monthly sales of alcoholic drinks. This forces restaurant owners to earn roughly 45% of their sales strictly from selling food or non-alcoholic drinks.
On Tuesday, the state's Small Business Commission heard from Tommy Herbert, Director of Government Affairs for the Virginia Restaurant, Lodging, and Travel Association. Herbert told lawmakers even business owners remain split on the issue.
In 2024, lawmakers tried to pass a bill that would amend the ratio to just 35%, but it ultimately failed.
Now the measure could return to Richmond once more as some lawmakers agreed there is more to address, especially in comparison to other states.
“We’ve watched money go into North Carolina from Danville for a long time. These places are set up just outside the city,” said Lee Vogler, Danville city councilman. "I support us moving in a similar direction like North Carolina."
However, potential litigation coming out of Portsmouth could put a hold to these discussions.
Fish & Slips Marina Raw Bar & Grill in Portsmouth said regulations set forth by Virginia ABC violate its 14th Amendment right to due process and equal protection. It is suing against the food-to-beverage ratio, claiming it not only hurts small business but is not all encompassing, as casinos are not subject to it.
Attorney Mike Joynes is representing the group. In the lawsuit, Joynes’ team says the 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.”
The Virginia General Assembly has typically not ruled on issues that have pending litigation, but it would not be the first time lawmakers have moved forward on an issue.
For now, a judge has yet to rule on the Portsmouth lawsuit.