Generally speaking, an alcoholic beverage license acquired from a Back Bay establishment can cost as much as $350,000 or more, while a license from a less economically successful neighborhood market can cost as little as $250,000. Similarly, Beer & Wine licenses can cost anywhere from $15,000 to $40,000 depending upon the neighborhood market from which it is purchased. Liquor Licenses from establishments that are in financial distress or which may already be out of business but in possession of a “pocket license” offer the best possible “deals” when it comes to cost, but the buyer may have to sort through Department of Revenue and Department of unemployment Assistance liens on such licenses that may add to the overall expense.
Any business could generate more of a return on its investment into a license by operating a restaurant in a more economically successful neighborhood, even when taking into consideration the higher rents paid in more expensive parts of the city. The natural business trend has therefore seen licenses transferred from such neighborhoods as Mattapan and Mission Hill, which each only have 3 licensed establishments left, to locations located in the Financial District, which currently has 110 licenses, and South Boston, which currently has 74 licenses.
While some neighborhood associations have continued to resist additional licenses within their neighborhoods, the Boston Licensing Board has recently signaled that it will not adhere to the informal caps per neighborhood as it did in the past. Such a shift in policy may lessen the cost of a liquor license from a particular neighborhood but it may accelerate the departure of licenses from neighborhoods where the licenses are not as valuable as they would be in other locations.
For a breakdown of all liquor licenses within the City of Boston see the below chart:
Neighborhood | All | B+W | TOTAL | Percent |
Allston/Brighton | 47 | 35 | 82 | 8.18% |
Beacon Hill/Back Bay | 90 | 26 | 116 | 11.57% |
Charlestown | 16 | 5 | 21 | 2.09% |
Chinatown | 30 | 29 | 59 | 5.88% |
Dorchester | 52 | 20 | 72 | 7.18% |
Downtown | 100 | 10 | 110 | 10.97% |
East Boston | 38 | 29 | 67 | 6.68% |
Fenway/Kenmore | 44 | 35 | 79 | 7.88% |
Hyde Park | 12 | 8 | 20 | 1.99% |
Jamaica Plain | 19 | 18 | 37 | 3.69% |
Mattapan | 3 | 0 | 3 | 0.3% |
Mission Hill | 1 | 2 | 3 | 0.3% |
North End/West End | 39 | 54 | 93 | 9.27% |
Roslindale | 13 | 8 | 21 | 2.09% |
Roxbury | 25 | 15 | 40 | 3.99% |
South Boston | 61 | 13 | 74 | 7.38% |
South End/Bay Village | 75 | 16 | 91 | 9.07% |
West Roxbury | 7 | 8 | 15 | 1.5% |
TOTAL | 672 | 331 | 1003 |
Chart retrieved from BackBay.patch.com, June 16, 2012.