Amendment To ABC Law Allows Retail To Retail Liquor Sales In New York

In what is seen as a significant win for restaurants and bars across New York State, an amendment to the Alcohol Beverage Control (ABC) law signed by Governor Kathy Hochul that permits, with restrictions, the retail-to-retail purchase of liquor and wine takes effect on March 5, 2026.

Before the amendment, New York State law prohibited bars and restaurants from purchasing alcohol inventory from a retail wine or liquor store. All inventory was required to be purchased directly from NYS licensed wholesale distributors. Until this amendment, if a restaurant or bar ran out of an alcohol product, the business was forced to wait until its next scheduled delivery from its authorized wholesale distributor.

Many bars and restaurants are locally owned small businesses and operate on narrow margins. Running out of a popular item can mean the loss of significant revenue which harms the business, its employees and its customers. Prior to this amendment, if a business replenished its inventory in a pinch by purchasing product from a liquor store, the business would be violating the Alcohol Beverage Control Law and could face costly civil penalties as well as risk the suspension, revocation or cancellation of their liquor license. That all changes on March 5th.

Under the amendment:

• Bars, restaurants, and any other establishment licensed for on-premises consumption of alcohol may purchase a maximum of six (6) bottles per week of wine or liquor from an off-premises licensed retail seller.
• Both the buyer and seller must maintain records of these transactions, and those records must be made available to the New York State Liquor Authority and its duly authorized agents and employees.

Establishments licensed for on-premises consumption will still face civil penalties for retail purchases that exceed the weekly allowed allotment of six bottles or for not keeping proper records of retail purchases.

At Gross Shuman, our attorneys work with bars, restaurants, hotels, music venues and other establishments to obtain, renew, and defend operators against alleged violations of the ABC Law. Attorneys at Gross Shuman also handle a variety of other business and compliance issues such as wage and hour law audits, employment matters, contract negotiations (leases, purchases, financing, shareholder and member agreements etc.), business succession planning, and trusts and estates. Contact myself or one of my colleagues to assist with your legal and business needs.

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