Frances Rodriguez – On May 12, 2023, Governor DeSantis signed into law amended Florida Statute Section 561.20(4), heralding a transformative change in the state’s alcohol regulatory framework. This revision to the statute known as the Special Food Service license (SFS), promises to have a profound and far-reaching impact on Florida’s retail alcohol beverage industry. In this blog post, we explore the implications of the legislative change and how it potentially opens doors for smaller restaurants and positions Florida as a business-friendly destination for restaurateurs nationwide.
Before the amendment, the previous criteria for acquiring and maintaining an SFS license were stringent, making it challenging for smaller restaurants to enter the market:
“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…”
And although the new amendment still requires that these establishments must derive at least 51 percent of their gross revenue from the sale of food and nonalcoholic beverages, the revised statute introduces a less restrictive approach:
“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 amendment now allows bona fide food service establishments with 2,000 square feet of service area, equipped to serve 120 persons simultaneously, and at least 120 physical seats for patrons during operating hours, to apply for the SFS license. This change in criteria is a game-changer for aspiring restaurateurs who previously found the requirements of a Florida Quota license prohibitive.
The amended SFS licensure criteria represent a significant victory for smaller restaurants across Florida. By lowering the barriers to entry, these establishments now have a higher chance of securing the coveted SFS license, granting them the authority to serve a full range of alcoholic beverages. The amendment levels the playing field, fostering an environment where diverse dining concepts can thrive without the financial burden of acquiring a quota license from the competitive open market.
Montague Law rightly calls the passing of the new legislature a game-changer for alcohol licensing in Florida’s small business sector. With the passage of SB1262/HB639, we are witnessing a pivotal moment in Florida’s restaurant industry. The relaxation of service area and seating prerequisites streamlines the pathway for restaurants to offer a broader selection of liquor to their patrons. These changes offer an opportunity for more businesses to boost revenue potential and attract customers to their concepts that were previously limited in their offerings. From this perspective, the amendment to Fla. Stat. 561.20(4) requirements is a win-win for Florida restaurant owners and their customers alike. From a strategic standpoint, the new legislation plays a pivotal role in creating a more equitable business landscape. It empowers smaller establishments to enhance their customer appeal and revenue potential through a diversified beverage menu. As full-service liquor licensing becomes more accessible, these smaller Florida restaurants will likely be able to compete more effectively against their larger counterparts.
This legislative change could potentially attract restaurateurs from across the country. Recognizing the increased affordability and accessibility of full-service liquor licensing in Florida, out-of-state restaurant owners might see this as an opportunity for expansion or relocation. As the new law only took effect on July 1, 2023, only time will tell what the implications will be for the Sunshine State. It will be exciting to witness Miami transform into an even more diverse and vibrant restaurant scene that benefits small businesses and consumers alike.
