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Overcoming tough economic times calls for innovative thinking and a willingness to look outside the box. However, some individuals insist today’s dramatic financial situation screams for drastic measures. Unsubstantiated claims of guaranteed stimulus should prompt voters to question how much our community is willing to sacrifice to gain economic growth through theoretical means.
Rep. Gage Froerer, R-Huntsville, would like us to believe alcohol sales are the ultimate answer to Utah’s financial woes. The impeding factor to proving his theory is simply the lack of alcohol licenses, which some believe to be the essential component to successfully operating a restaurant in Utah.
Froerer wants to eliminate the quota set in Utah Code 32A of the Alcohol Beverage Control Act, which allows one restaurant alcohol license for every 5,200 Utah residents. His sponsored bill, House Bill 223, repeals the population restriction on the number of available restaurant liquor licenses.
At face value, it makes sense that an increase in restaurant alcohol licenses could potentially boost state revenue. But the money and its extensively documented, harmful consequences would be knowingly generated at the expense of the family-oriented culture of our community. Increased risks of disease, DUIs, divorce, underage drinking and crimes against people and property are undeniably associated with the serving of alcohol—risks most Utahns are unwilling to endure beyond current regulated standards.
Additionally, the theory of developing recession revenue through increased alcohol sales has been officially debunked. A May 2009 Nielsen Company report “Living through the Economic Hangover; What Lies Ahead”—based on an April 2009 Nielsen Homescan survey of 5,000 people who legally drink alcohol—found 56 percent are dining at restaurants less often and 37 percent are reducing visits to bars or nightclubs. Economic growth has actually declined in these market areas, and store-purchased alcohol sales have remained unchanged since the recession began.
Interestingly, the Nielsen survey found significant changes in consumers’ behavior toward purchasing alcohol. There’s a strong desire in 50 percent of consumers to discover the best alcohol deal, and one-third of beer, wine and spirits consumers said they now order fewer drinks at restaurants, bars or nightclubs. It seems Americans are wisely choosing to be frugal instead of the overly assumed scenario of carelessly drowning their sorrows in alcohol.
Even more significant, the survey reports an overwhelming 75 percent of consumers said they’re not planning on changing their new, controlled alcohol-spending habits post-recession. This positive mindset is accurately reflected in Nielsen’s newest survey, which reports that nine out of 10 households were going to watch the Super Bowl at home instead of a restaurant or bar.
Research proves the theory of revenue generated by “recession-proof” alcohol sales is not a viable economic solution. People have buckled down on pricey alcohol spending at restaurants, and they’re shrewdly choosing to drink for less at home. Although there might be a need to re-evaluate the quota percentages to free up a few more alcohol licenses, there is no need to eliminate them. Utahns should continue seeking innovative ideas to triumph over the economic recession that will not sacrifice Utah’s world-renowned family culture.
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