Minneapolis voters have scrapped the 70-30 food-to-alcohol ratio law that affected bars and restaurants located in Minneapolis’ residential neighborhoods. By a vote of over 80%, Minneapolis city residents voted overwhelmingly in favor of scrapping the archaic law on the city’s November 4, 2014 ballot.

Going back as far as the 1800s, restaurants in Minneapolis’ residential neighborhoods were required to follow a city charter that required the restaurants to maintain a 70-30 food-to-alcohol ratio. The “70-30 rule” was initiated as a way to deter alcohol-related problems in restaurants located in Minneapolis’ residential neighborhoods. The Minnesota alcohol law required a Minneapolis restaurant located in residential neighborhoods to make at least 70 percent of its revenue from food and no more than 30 percent of its revenue from alcohol sales.

The rule has since become outdated and unduly burdensome for many Minneapolis restaurants located in residential neighborhoods, putting them at an unfair competitive advantage with those restaurants located downtown. Additionally, the higher price and popularity of craft beers and specialty cocktails has made it increasingly difficult for restaurant owners to meet the ratios required under the old rule.

With the elimination of the 70-30 rule, restaurants located in residential neighborhoods no longer have the burden of proving a 70-30 ratio of food-to-alcohol sales. The elimination comes as a relief to many Minneapolis restaurant owners. The public vote came less than two months after the Minneapolis City Council unanimously voted to repeal the 60-40 food-to-alcohol law, which affected restaurants located in Minneapolis’ commercial areas. These recent developments have helped to put residential and commercial restaurants on much more even footing with those restaurants located downtown.

For advice on rules and regulations affecting bars, restaurants, taprooms, distilleries, and related business start-ups, contact one of the Minnesota alcohol business attorneys of Trepanier MacGillis Battina P.A.
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About the Author:
Minnesota alcohol industry attorney Bryan R. Battina advises clients on business start-ups, particularly the rules and regulations affecting brewery and distillery start-ups, bars, and restaurants. Bryan may be reached at 612.455.0505 or bbattina@trepanierlaw.com. Trepanier MacGillis Battina P.A. is a Minnesota business law firm located in Minneapolis, Minnesota.