But many businesses licensed as restaurants operate more like bars, with late-night hours and most of their sales coming from alcohol. Those establishments are violating the law and subjecting themselves to a $1,500 monthly fine.
Rep. Curry Todd, R-Collierville, wants to see the state Alcoholic Beverage Commission strictly enforce laws on the books since the state began allowing liquor-by-the-drink sales a generation ago.
Todd has filed a bill that would require "restaurants" to report their food and alcohol sales monthly to the ABC board, which would then have the power to fine, or shut down, establishments failing to sell more food than alcohol.
"If in fact you want an ABC license then you need to meet the requirements to attain that license," Todd said.
In 2009, the ABC board collected $84,000 in fines from establishments failing to meet the minimum food service requirement.
Big Bang, Tootsies Orchid Lounge, Lipstick Lounge and Hollywood Disco were among the "restaurants" that failed to derive most of their income from the sale of food.
"Here's the issue: If you own anything that would be considered more of a bar than a restaurant by the average guest, you can have a kitchen, put menus on the table, you can do everything it takes to show people that you sell food, but you can't make them order food," said Austin Ray, owner of the Melrose Neighborhood Pub, which he says regularly walks the line between meeting and failing to meet the requirement on a monthly basis.
New permit mentionedTodd said he introduced his legislation in response to the fallout from last year's new state law allowing permit holders to carry guns into places serving alcohol. The law was struck down by a Nashville judge, who said it was too vague since permit holders wouldn't know whether an establishment was meeting the food service requirement.
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