To Protect and Serve: Serving Alcohol in a Manner that
Protects the Public is Good for Business and Will Help You
Avoid Regulatory Dragnets
March 5, 2008
Bill Buchanan
Cascade Business News
The popular television series Dragnet and Adam-12 familiarized American viewers with the motto of the Los Angeles Police Department: “To Protect and Serve.” That motto is equally befitting to any restaurant or bar that sells alcoholic beverages. Such establishments make money by serving beverages to their patrons. In doing so, however, they assume certain responsibilities to protect those patrons and the members of the public who encounter them. Failure to live up to those responsibilities is bad for business.
At first blush, the two objectives—protecting the public and serving patrons—appear to be at odds with one another. It could be argued that, in the short term, a bar owner who ignores his duty to protect the public would benefit by serving more drinks to a given patron on a given night. But in today’s hospitality marketplace, patrons would quickly discipline any establishment with that short-sighted view. Patrons rarely wish to share the bar, much less the road, with someone who has been over-served. Astute bar and restaurant owners take a more long-term, and responsible, view by reconciling the two objectives. By protecting the public and their patrons, they create a more hospitable environment for patrons, reduce their liability, control their insurance premiums, make friends with their landlords and neighbors, and foster a better relationship with regulators. Smart operators understand that protecting the public is good for the community and good for business.
Unfortunately, even the most well-intentioned bar or restaurant owner may face civil liability or be caught up in a regulatory “dragnet” due to lack of vigilance or to circumstances beyond their control. To minimize civil and regulatory liability, there are pragmatic measures that should be considered. The following is a partial list those measures:
1. Be sure all servers have the proper education and credentials. Maintain a compliance file to ensure that all servers within your establishment are properly permitted by the Oregon Liquor Control Commission (OLCC) and that all licenses, permits, and fees are current.
2. Review your OLCC license frequently, particularly when making any alterations to your business. Seasonal changes to your floor plan, table layout, restrooms, kitchen layout, and outdoor seating capacity may jeopardize your license to serve alcohol in ways that are both unexpected and counterintuitive. Modification of meal hours, last call, opening and closing times, and special menu hours may also trigger technical violations. Consult the specific terms of your license before implementing changes to your operation. When in doubt, be sure to obtain advance written permission from the OLCC before making such changes to your operation.
3. Consider installing security cameras. Video footage can be very persuasive when defending an over-service charge or negligence claim, and can also be helpful for monitoring patrons, employees, and would-be thieves. If you haven’t done so already, consider installing a video surveillance system and be sure you have enough memory to store the footage for at least three years (perhaps longer in some circumstances).
4. Take even minor citations and warnings seriously. Some OLCC charges are more serious than others. Even minor citations and verbal warnings, however, can jeopardize your license due to their cumulative effect. They may also be used as aggravating circumstances to increase the severity of future penalties or suspensions. A poor OLCC record may also cause bad publicity, jeopardize your lease, raise your insurance premiums, or even increase your exposure to civil liability.
5. Separate work and play. The temptation for a server, or supervisor of that server, to share an occasional round while on duty is great. Resist that temptation. Not only is drinking while on duty prohibited, it’s bad business. If you want to unwind at your own establishment, be sure your employees and customers know that you are off duty and that you have delegated someone else to address any business issues that may arise. If you really want to let your hair down, go elsewhere.
6. Develop a working relationship with OLCC staff. The history of alcohol regulation since Prohibition has created multiple convoluted and counterintuitive bodies of local, state, and federal law that govern all aspects of alcoholic beverage production, advertisement, sale, distribution, service, and consumption. Navigating these bodies of law can be much easier if you have developed a good working relationship with regulatory staff.
With some advanced planning, practical advice, and a good working relationship with OLCC regulators, you can both protect and serve your patrons and your community effectively.