Russian authorities are discussing the possibility of restricting the sale of alcohol in residential cafeterias. While this initiative greatly alarmed the business, it warned that it would cause high damage to the business. In this respect writer Kommersant refers to a letter written by Igor Bukharov, President of the Federation of Restaurant Operators and Hoteliers (FRiO), to the State Duma Economic Policy Committee.
Businesses understand the government’s concerns about organizations “using loopholes in the law to sell alcohol,” according to the FRIO letter. However, approximately 38% of all catering establishments licensed to sell alcohol are located in residential buildings. If additional restrictions are imposed, this will create high risks for conscientious market participants, with no claims by residents and regulators.
Market experts agree that the ban on nightly alcohol sales will lead to the closure of many businesses. At the same time, it is necessary to deal with the points that sell alcohol at night. However, conscientious players will benefit if the restrictions do not affect the entire alcohol segment and target only illegal products. Also, with a complete ban, there is a risk of an increase in illegal alcohol sales.
The Ministry of Finance stated that the sale of alcohol in the cafeterias in the apartments can be done in facilities of at least 20 m2. In addition, regions may independently set their own restrictions on the sale of alcohol at these points. Therefore, a complete ban is likely to reduce the number of bona fide participants and the level of competition.
On May 14, Head of the State Duma Vyacheslav Volodin on the Telegram channel spent a survey of the ban on the sale of alcohol at night in shops in apartment buildings – the so-called “liquor stores”. Nearly 82% of those who voted affirmatively welcomed the ban on nightly sale of alcohol in such stores. At the same time, 10% opposed the ban.