Liquor commission going slow on Starbucks' request to sell beer, wine


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SALT LAKE CITY — Starbucks wants to add alcoholic beverages to its assortment of coffee, tea and hot chocolate at five of its Utah stores, but the state alcohol commission isn't ready to let the pouring begin.

The Seattle-base coffee house giant has applied for a state liquor license to serve wine and beer as part of its "Starbucks Evenings" menu, which would also include small food plates. The five stores are in Holladay, Lehi, Farmington, Park City and Salt Lake City.

Shannon Boldizsar, Starbucks government and community affairs manager, made a brief presentation Tuesday to the Utah Alcoholic Beverage Control Commission. She said the concept is evocative of European coffee houses on which Starbucks is based.

Boldizsar said she understands serving alcohol brings more responsibilities given the unique laws and circumstances in Utah. Starbucks offers the evening menu at 75 stores in 10 states, she said.

The commission did not make a decision on the license.

"There are some issues we need to work through," said Chairman John T. Nielsen, adding the request needs to be vetted at a "higher level" than the commission.

After the meeting, Nielsen said that higher level might be the Utah Legislature and the governor's office because it involves policy, such as the definition of a restaurant.

"What did the Legislature intend when it developed a license for a full service restaurant? Is it this sort of configuration or is it what we typically know as a full dining restaurant? And that's the issue," he said.

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"As a commission, we have to follow what the statute tells us and we're not sure what that says with respect to Starbucks' request, and they understand that," Nielsen said.

Commissioner Jeff Wright called Starbucks one of the great American companies and said he has no doubt it would continue to be a good citizen of the state. "But there are many questions," he said.

Starbucks is applying for what is called a limited service master license, which allows a company to obtain one permit to cover at least five locations. It would be the first business to get a master license.

The Utah Legislature created the license for full and limited service restaurants in 2013. A full service permit allows the sale of all liquor and costs $10,000, while a limited service permit is limited to wine and beer and costs $5,000.

Lawmakers adopted the master license to remove the uncertainty for big chains as to whether liquor permits would be available under the state's quota system. It is considered one license for the purposes of the restaurant quota.

Sen. Jerry Stevenson, R-Layton, said after the meeting that Starbucks' request looks like a "definite change in policy" and something lawmakers might need to address.

Stevenson, the Senate's point person on alcohol issues, said it appears to be a "stretching" of the definition of restaurant, "but again I haven't looked at this in depth and I would like to do that before we start making judgment calls on it."

Nielsen said he didn't know when the commission would again take up Starbucks' application.

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Dennis Romboy

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