Effective this week, two new Pennsylvania laws easing restrictions on alcohol sales have gone into effect, much to the delight of restaurant and bar owners across the Commonwealth.
In Pennsylvania, several laws remaining on the books since post-prohibition days have created undue restrictions on the way alcohol can be sold, manufactured, and distributed. Two new laws, Acts 57 and 86 of 2024, began loosening regulations up a bit, with new measures extending the allowed amount of time for happy hours from 14 hours per week to 24 hours a week; allowing for discounts on food and drink combination purchases; and allowing bars and restaurants to more easily expand and offer permanent outdoor seating.
To the delight of restaurant owners and their patrons, these expansions took effect on Monday, September 16, 2024, only two months after Gov. Josh Shapiro signed them into law.
RTDC (Ready-to-Go Cocktail) Sales
One of the most prominent changes to the state’s liquor laws is the ready-to-drink cocktail (RTDC) permit of Act 86 of 2024. Previously, spirits like vodka, gin and tequila could only be sold in Fine Wine and Good Spirits stores, which are controlled by the Pennsylvania Liquor Control Board. The same went for cocktails containing those spirits.
Expanding the network of retailers allowed to sell ready-to-drink cocktails, restaurants can now apply for ready-to-drink cocktail permits to sell canned drinks like High Noon and White Claw.
According to the Pennsylvania Liquor Control Board, the implementation of the RTDC permit allows businesses to sell spirits-based canned drinks between 0.5% to to 12.5% alcohol beverage by volume (ABV in original containers up to 16 ounces for off-premises consumption (to go).
Happy Hour Extension
The other big news applies to happy hours in the state’s bars and restaurants that have been extended from a maximum of 14 hours per week to 24 hours per week. This will allow restaurants to offer discounts on food and drinks for a longer duration.
In addition, licensees may offer up to two food and beverage combination specials each day. Examples of food and drink specials include beer with the purchase of a pizza or wine with pasta.
Outdoor Seating
Temporary outdoor extensions of premises for establishments, set to expire on December 31, are now permanent. Establishments will be allowed to renew temporary outdoor extensions via applications.
Other changes in the law allow Pennsylvania breweries and distilleries to now extend their hours till 2:00 a.m. on New Year’s Day and pay $50 to stay open until the same time one day a year with advance notice.
Additionally, licensed night clubs will now be treated like restaurants and hotels, allowing them to serve food longer.
How Pennsylvania Laws Stand Out
1. State-Run Liquor Stores (PLCBC)
While other states allow private businesses to sell liquor, Pennsylvania limits this to state-run outlets. Pennsylvania has a state-controlled monopoly over the sale of wine and spirits with the Pennsylvania Liquor Control Board (PLCB) operating state-run "Fine Wine & Good Spirits" stores.
2. Restrictions on Beer Sales
Beer sales in Pennsylvania are heavily regulated, and up until recent reforms, it could only be sold in large quantities by beer distributors or in smaller quantities by restaurants, bars, and certain grocery and convenience stores. A beer distributor can sell beer in cases (24-pack) or kegs, while other outlets are restricted to selling smaller amounts (like six-packs or single bottles).
3. Wine Sales
Until a law passed in 2016, wine was only available in state-run stores. The law allowed certain grocery stores and restaurants to sell wine, though they needed a special license.
4. Limited Sunday Sales
Sunday alcohol sales were prohibited in Pennsylvania until 2003. Now, it is allowed but with restrictions. State liquor stores have limited hours on Sundays.
5. Private Wine Shipping
Pennsylvania has specific laws regulating the shipment of wine to residents. Individuals can receive shipments from wineries, but only if the winery is registered with the state and pays certain taxes.
6. Alcohol Control and Zoning
The state regulates where liquor licenses can be issued, and certain counties or municipalities may have stricter local rules, including "dry" areas where alcohol sales are entirely banned.
7. BYOB (Bring Your Own Bottle)
Pennsylvania allows restaurants without liquor licenses to allow customers to bring their own wine or beer (BYOB), though the establishment can't charge a corkage fee.
How PA’s Liquor Laws Affect Restaurants
Pennsylvania's state liquor laws create both opportunities and challenges for restaurants. While the Commonwealth’s BYOB policies can be a draw for customers and allow non-licensed restaurants to operate without the burden of expensive licensing, the high cost and limited availability of liquor licenses make alcohol sales more complex and potentially less profitable. Restaurants must navigate these state regulations carefully to remain competitive and compliant.
Take Away
Pennsylvania’s liquor laws are a legacy of the Prohibition-era, with the state continuing to maintain significant control over alcohol sales. While these recent reforms have modernized the state's system, restaurants continue to be affected by the state’s strict, and largely outdated, regulations from the 1930s.
By Eileen Strauss
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