The New York State Liquor Authority receives and processes tens of thousands of applications each year. The vast majority of them are routine license renewals, and a good deal of the rest are also very simple single event or smaller type permits.
But even so, the total number of new license filings in 2022 (the last year for which official statistics are available) was 6,845, and the total number of license change applications for things like new and departing owners and partners was 4,309.
This is in fact a good deal less activity compared to what was happening before the Covid-19 pandemic.
In 2019, the total number of new license filings was 7,328, and the total number of license change applications for things like new and departing owners and partners was 5,996.
But in my experience and the experience of many other professionals, owners, and operators, the Liquor Authority is now taking much, much longer to process a good deal less work. A professionally prepared new liquor license application that used to be completed in about 4-5 months now takes at least 6 months. Adding and removing owners and partners used to take 3-4 months, but today takes upwards of 7-8 months. I have several clients going through the corporate change process who submitted their paperwork 6 months ago, but who have still not even had their applications assigned to a Liquor Authority employee to review.
I do not know exactly why this is the case. Some of it has to do with Liquor Authority employees working remotely I believe. Some of it has to do with staffing issues and budget issues I suspect.
No matter why this is happening, it is a difficult and stressful problem for owners and operators who make substantial financial, business, and emotional investments in buying, selling, and operating licensed establishments all over New York.
It is also awful customer service by the Liquor Authority, and is certainly in some cases making things worse for business owners. Here is why:
• A liquor license is the single most valuable asset an owner or operator owns. Everything depends on it. Delays in getting a license can cost tens of thousands of dollars in wasted rent payments, lost revenue, and even the complete failure of the business.
• All business decisions depend on when a license can be expected. Rent negotiations, lease terms, marketing, advertising, menu choices, and even employee hiring and staffing levels. Uncertainties and delays wreak havoc on the business in ways that are too numerous to list here.
So, what can you do to deal with this problem until the Liquor Authority gets things back under control and back to a normal and reasonable processing time? Work with good professional advisors, get all of your documentation and information organized, and stay on top of the people you hire to do this work. Call, text, and email them frequently for status updates.
It’s the right thing to do, and I encourage my clients to do this. It’s the right way to provide good service to my clients and the right thing for them to try and get their licenses as soon as they can.
If you or someone you know needs help with a liquor license renewal or would like to talk about a different liquor license issue in New York, please reach out to me at 631-624-9007, or at david@sydangroup.com.