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As an OLCC licensee I think the biggest change in the industry is the inroduction of the Lottery. The Lottery has changed the very basic rule of the bar business. As most Licensees will surely tell you: the pie is not getting bigger, and the slices are becoming smaller by the day.
As the popularity of the Lottery increased the ranks of "Taverns" exploded overnight. Back in those days Taverns were defined as places where only beer and wine could be sold. These licenses were available on a supply and demand basis. Folks being smart decided that they could have OLCC licenses which were mandatory for Lottery facilities for a relatively small initial cost. This is the beginning of the end of the Tavern industry.
There is an economic term for the Lottery industry in conjunction with the Alcohol industry in this State. Its called "comparitive disadvantage." Basically stated this is the reality that if you don't have the lottery you are in a business sense "at a disatvantage" with your competitors. This is not true in all instances but its defenitely supported by numbers.
The end result was the OLCC recognized this and relaxed the food requirements for dispenser licenses and most if not all "Taverns" became "Hard Licker Bars." Research done by me showed the income differential between Taverns and HLBs three fold. The State saw dollar signs, so much so they decided (along with public opinion) to reduce our pay because we did so well. How many people do you know did so good at their jobs their pay was reduced?
In case you haven't noticed, I got into the Bar business; not the gambling industry. They do go hand in hand but I opened a bar long before the lottery came to town. Don't get me wrong, I have benefited from this boom. I am also suffering along with the rest of our State. When folks don't work they don't drink or go out much. I am open but work daily. The industry has become the dairy business of the 21st century. You have to milk it daily and you can't get very far away because Murphy's Law will surely come into play. Merry Christmas.
posted 2 years, 5 months ago
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