Gov. Murphy proposes liquor license changes to make it easier for restaurants to sell alcohol in N.J.

N.J. restaurant owners want more affordable liquor licenses, no caps

CLINTON, N.J. -- Gov. Phil Murphy says New Jersey's liquor license statute is antiquated and he wants to modernize the law to make it more equitable. 

Murphy hosted a roundtable discussion Thursday with a number of people, including restaurant owners. 

"This is challenging, I'd say, in total. It's the right thing to do," said Murphy. 

The governor sat down with several restauranteurs at Pru Thai restaurant in Clinton. They said liquor license caps and outrageous prices prevent them from doing business in the state. 

George Constantinou owns several restaurants in Brooklyn and one in New Jersey, but says he cannot afford a liquor license in the Garden State. 

"My drinks in Brooklyn, it's sometimes a 75 percent profit margin I'm making on them," said Constantinou. "In New Jersey, liquor licenses in my town are going for $600,000 and in New York it's $4,000 every two years." 

The owners of Pru Thai echoed his sentiment. 

"Since the pandemic, the dining crowd kind of dissipate a little bit. So if we had the liquor license, that would boost our clients coming in," said Korn Wongsarochana. 

Murphy's proposal expands liquor licenses at affordable prices based on a restaurant's size and number of employees. It also eliminates the caps placed on licenses by towns. 

The New Jersey Restaurant and Hospitality Association opposes the plan. Members say it diminishes the value of current licenses. 

"If I paid for something that has a certain value, and my value is $900,000, or more than that. So now there's more places to have alcoholic beverages," said Jerry Rotunno, who co-owns Committed Pig. 

"We proposed a means-tested tax credit that would cushion the blows substantially," said Murphy. 

"They should be reimbursed in some way. Totally reimbursed, no. But they should get something in recognition of their investment," said State Sen. Gordon Johnson. 

Murphy said he hopes legislators craft a bill this year and pass it in 2024. 

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