Continuously serving Kosciusko County since 1854
Bringing new restaurants to Warsaw may not be as easy as some residents think - choices are restricted by the limited number of liquor licenses available in town.
According to the Indiana Alcoholic Beverage Commission, the most popular permits - "three-ways" - are also the least plentiful. Three-way permits allow the sale of liquor, beer and wine.
The IABC doles out three-ways according to population. Warsaw is allowed eight three-ways (one for every 1,500 of population), and all eight are taken. Once the quota is filled, no more three-ways will be issued unless the population increases according to the next census in 2000.
But what the IABC doesn't publicize is that a restaurant with a two-way (beer and wine) permit, a beer-only license or a wine-only license may qualify to sell beer, wine and liquor by obtaining a supplemental license.
The supplemental permit applies only to businesses located in cities or towns with populations of less than 20,000. It requires the restaurant to sell the alcoholic beverages for on-site consumption only, to hold a one- or two-way permit but qualify for a three-way, and to have a petition signed by 250 residents of the city or town, requesting the permit.
In the past, the restaurant was required to have a one-way for at least a year before applying for a supplemental, said Syracuse attorney Steve Snyder. That requirement no longer applies, and restaurants now may apply for both permits simultaneously.
Ironically, there is no limit on the number of three-ways that may be sold in the county, outside the incorporated limits of cities and towns, the IABC employee said. "You could line them up right outside city limits, and when they're annexed into the city, their liquor licenses will be grandfathered in," he said.
For businesses in the county, Snyder said, the state requires a statement from the county sheriff that there is adequate police protection for the restaurant.
Because of the inequities and inconsistencies in ABC policies, Snyder said the entire system is archaic and should be changed.
"In my opinion the quota system is just foolishness," he said. "The legislature should have revamped the Alcoholic Beverage Commission years ago. All they do is stifle competition."
By limiting the number of restaurants or other businesses that can sell alcoholic beverages, Snyder said, "the state is telling the guy who wants to open a quality restaurant, 'Sorry, you can only sell iced tea.' "
"When you're a quality restaurant," he said, "probably 6 to 7 percent of your business is directly attributable to alcohol sales but directly responsible for the other 93 or 94 percent."
