How much is an on-site liquor license worth in your town?

[dcfirefighter]

I don't know, I'm not even sure if they're transferrable. But damn if they aren't hard to get. Great spot to be as a business - get the government to run interference for you, and protect you from competition. Heck, you don't even have to pay for that service, only a little fee.

I believe the restricted supply of licenses has suppressed competition and variety in the tavern scene in many jurisdictions. Because of this lack of variety, some people seem to have found that their local watering hole doesn't meet their preferences.

In addition, those who are lucky enough to hold a license, can pretty much make money at will. Their license, even if non-transferrable, is worth money, in most cases quite a lot of money. They are worth something entirely due to the actions of the local and state government.

I offer two solutions:
My favored solution is to allow licenses to anyone who meets a few straightforward requirements: bonding, insurance, training, whatever. Just charge them the costs of processing, and let a thousand taverns bloom. I like this because I think most of the problems associated with bars are exacerbated by the relative lack of them: you have to drive to them, they are often crowded, and the 1 asshole in 1000 is most likely at the only bar around. The UK does alright with their neighborhood pubs.

My other solution, for those who REALLY BELIEVE that bars are evil, and need to kept out of your neighborhood (NIMBYists), is to choose how many bars you'll allow. (actually how much bar capacity). Let your carefully elected representatives choose this number, divide it by 5, and auction 1/5th of them every year. CAPTURE the value of those licenses, the value that is created by the issuing body. Sure, it would probablly put some old nasty bars out of business, but it'd probably open some new, hip ones, AND it would raise revenue for town. Maybe you could do something progressive, like lower building taxes.

[seemunkee]

1. We don't want people to drink and drive

Yet we force bars to be so separated from homes that you have to drive to get there. I would love to have a pub I could walk to have a beer with my neighbors and walk home.

[Inland]

2. As a side note,

I'm not sure if the UK does alright with neighborhood pubs. Some news reports coming out on a shocking increase of public drunkenness and brawling in the UK.