Tallahassee Passes Amended 561.20(4) Florida Statute Opening Licensure Opportunities To New, Bona Fide Restaurants In This State

May 10, 2023

By: Louis J. Terminello, Esq. and Bradley Berkman, Esq.

UPDATE – 5/15/23

As an update, Governor Ron DeSantis signed into law the amended Florida Statute 561.20(4) on the morning of May 12, 2023, bringing about important changes to the state’s alcohol regulatory framework. This significant development is expected to have a far-reaching impact on the retail alcohol beverage industry in Florida.

After intense debate by those with competing goals, the Florida Legislature sent a bill to the governor amending Florida Statute 561.20(4), the statutory section authorizing alcoholic beverage sales by restaurants in this state. The firm is proud to have been an integral part of the process. Known as the Special Food Service license, or SFS, this license is issued to restaurants that meet a list of specific criteria and comes with a reasonable annual fee imposed by the state. Prior to the passage of the recent bill, as a comparison, the criteria for acquiring and maintaining an SFS included, inter alia:

“A food service establishment that has 2,500 square feet of service area, is equipped to serve meals to 150 persons at one time, and derives at least 51 percent of its gross food and beverage revenue from the sale of food and nonalcoholic beverages…”

The new legislation expands the opportunities for new restaurants, that found the old criteria too restrictive, making licensure under an SFS unlikely. The revised statute, inter alia, includes:

“A bona fide food service establishment that has 2,000 square feet of service area, is equipped to serve meals to 120 persons at one time, has at least 120 physical seats available for patrons to use during operating hours, holds itself out as a restaurant and derives at least 51 percent of its gross food and beverage revenue from the sale of food and nonalcoholic beverages…”

The amended statute opens the door for smaller restaurants (as in, square footage) to acquire the special license. Prior to the passage of the amended statute, smaller restaurants were limited to selling beer and wine (2COP), only or investing heavily in a Florida Quota license. Many aspiring restaurateurs found both options either too costly or too limiting to bottom-line revenue. Aspiring restaurateurs were forced to table their dining concepts and the dining public was denied more options. The language of the new statute limits the issuance of the SFS to bona fide restaurants that hold themselves out as such. So, if it looks like a duck, smells like a duck and in this instance, serves up a duck (hopefully, absent the quacking), it is indeed a bona fide restaurant and an SFS will be granted.

The new legislation carries with it many positive outcomes. As noted above, Florida residents will see more and varied bona fide restaurant openings offering greater dining experiences. Those businesses which currently hold valuable quota licenses will continue to see these license types hold their value.

The new law takes effect on July 1, 2023.

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Tallahassee Passes Amended 561.20(4) Florida Statute Opening Licensure Opportunities To New, Bona Fide Restaurants In This State

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