## Fargo’s Wine Sales Debate Continues to Stall
Fargo’s City Council has once again rejected a proposal to introduce ‘wine accessory’ licenses for restaurants, a move that has sparked debate about the future of wine sales within the city. The motion, originally championed by Board member Tatiana Hackman, failed to gain a second during a Liquor Control Board meeting on January 21, 2024, effectively halting the discussion for now.
The proposed license would have permitted restaurants to sell up to two unopened bottles of wine per customer alongside a food purchase. This initiative, under consideration for several months, stemmed from concerns that local restaurants were struggling to compete with neighboring cities that already offered this service. The underlying goal was to provide a greater variety of offerings and enhance the dining experience for Fargo residents.
## Understanding the Proposal & Existing Regulations
Former City Auditor Steve Sprague clarified that the proposed license wouldn’t represent a shift towards operating as an off-sale liquor retailer. Restaurants seeking this license would have needed to meet a stringent 50% food sales requirement, designed to ensure the primary focus remained on food service. The license itself would have been an add-on to existing restaurant permits, maintaining the existing regulatory framework.
## Concerns Over Existing Licenses and Previous Attempts
Not all board members supported the motion. Robert Nelson voiced significant reservations, primarily regarding potential negative impacts on established off-sale liquor store licenses. He expressed fears that introducing an estimated 20-30 new licenses could lead to detrimental consequences. A key question remained: how would the city effectively measure the impact of such a change?
Nelson also highlighted the history of a similar event license introduced in the past, which ultimately failed to be implemented, adding to the uncertainty surrounding the proposal. Deputy City Auditor Angie Bear reiterated Hackman’s motion, further emphasizing the need for a more detailed examination of the issue.
## Context: Declining Wine Sales and Rising Seltzers
The discussion surrounding the license was fueled by reported declines in overall wine sales within Fargo. Simultaneously, the growing popularity of seltzers presented a competing beverage trend, intensifying the pressure on restaurants to diversify their offerings and attract customers.
## What This Means for Consumers
The rejection of this proposal suggests that Fargo remains cautious about broadening the availability of wine within restaurants. Consumers seeking to enjoy a bottle of wine with their meal may continue to be limited to ordering from existing off-sale retailers or neighboring cities. However, this decision doesn’t preclude alternative approaches to boosting the dining experience within Fargo.
## Pros and Cons
Pros:
Allowing restaurants to offer wine alongside food could potentially attract new customers, revitalize struggling establishments, and provide a greater variety of choices for diners. It aligns with broader trends in the beverage industry.
Cons:
Concerns about harming existing off-sale licenses, potential regulatory complexity, and the difficulty in accurately measuring the impact of a new license remain significant obstacles.
It’s unclear whether the proposal will be revisited in the future. City officials could explore alternative strategies to support the local restaurant industry without fundamentally altering the licensing structure.
