In a move to help restaurant and pub owners who are struggling because of the pandemic, the province will allow liquor licence holders to buy beer, wine and spirits at a reduced cost.
A temporary wholesale pricing model will come into effect at the end of July, allowing bars, lounges and restaurants to buy liquor at a wholesale price, the province said Tuesday.
The pricing will remain in effect until March 31 next year.
Currently, hospitality licensees pay the full retail price for beer, wine and spirits 鈥� wholesale price, plus a retail markup set by the Liquor Distribution Branch. The new model will have licensees pay only the wholesale price of the products they order.
鈥淭he hospitality industry has been one of the hardest hit during the pandemic, badly hurting the more than 190,000 British Columbians who work within the sector,鈥� said Attorney General David Eby.
鈥淥ffering a wholesale discount for licensees was something we were exploring before COVID-19, but after the onset of the pandemic we accelerated efforts in order to support these community businesses as they try to find their feet.鈥�
The government is also working on changes to the provincial liquor distribution centre in Delta, and on the conversion of rural agency store authorizations to a new form of rural liquor licence.
鈥淭he people working in the hospitality industry are a major driver of B.C.鈥檚 economy,鈥� said Lisa Beare, minister of tourism, arts and culture. 鈥淭his change recognizes the restaurant sector鈥檚 important role in supporting tourism activity throughout the province.鈥�
According to the province, the restaurant industry in B.C. generates $13 billion in annual sales 鈥� five per cent of the province鈥檚 GDP 鈥� and employs 174,200 people, while tourism contributes almost $8 billion in GDP, more than any resource industry other than oil and gas.
Restaurants Canada applauded the move, with Mark von Schellwitz, the group鈥檚 Western Canada vice-president, noting it could be a game-changer for many operators.
鈥淭his comes at a much-needed time as licensed restaurants are re-opening under challenging restrictions that make it difficult to just break even,鈥� he said.
鈥淭he wholesale liquor pricing announced [Tuesday] lowers the cost for all licensees and can make the difference for whether an establishment can remain viable in these challenging times.鈥�
