An application for a new beer wine & liquor license has been applied for in Chestertown. The application is for a J.J. Liquors and Deli at 511 Washington Avenue, which is where C-Town Liquors & Deli just moved from.
If it is approved, this will make the 7th liquor license in a one square mile of its proposed location, which currently Pips liquors, C-Town Liquors & Deli, Lewes Market lIquor & Wine, Suds’n Soda, Sunny Mart Liquor & Deli and Super Soda Center. This does not include restaurants and bars in the same square mile.
The public hearing for this application is on 8/20/2013 @ 6 pm at the Board of County Commissioner’s hearing room in Chestertown. I encourage anyone that would like to voice their opinion in this matter may do so at that time.
Jeremy Caponi
C-Town Liquors & Deli
Chestertown
joel brandes says
Is the liquor store just over the bridge in Queen Anne’s County still in business? If so, that would make 8 serving the same area. Is the pie that large? You have my deepest sympathy.
t smith says
Joel Brandes, the liquor store over in Queen Annes (at the bottom of the bridge), is now an antique store. Count on how many there of them (antique shops) in C-town. Must number in the double digits as well. But just remember this, in Kent County you can get drunk & shop for antiques all in less then a 1 mile radius. Maybe that’s what C-town ought to use for their next slogan. Just saying…
Den Leventhal says
No. That one is closed. Replaced by a “collectables” shop.
Bill Anderson says
You can never have too many liquor stores ot tattoo parlors.
Pete Buxtun says
Don’t forget Bail Bondsmen!
Fred Patt says
You might as well include Play It Again Sam, since they sell beer and wine retail.
I agree, the market seems a bit saturated. I supposed this becomes a case of market selection, for whoever offers the best selection and service.
Jen McColigan says
What Ctown needs is a nice breakfast/diner joint where you can get a nice breakfast, and that is reasonable. A place that is roomy and has a nice space for its clientele.
Keith Thompson says
Funny you should mention this…I had a recent conversation with a Chestertown native and we agreed that the old Village Bakery location would be a nice spot for a diner.
Janice Dickson says
We had heard several weeks ago that Louisa’s was moving into that building.
But we’ve nothing to indicate that it’s happening, and the sign is still up.
MBTroup says
This would be great. It would open up that whole side of the building for a large secondary retailer. Possibly a necessary adaption as Rock Hall embraces the tertiary stores currently plentiful here.
Bill Kille says
Yeh! What she said….. A “Bob Evans”
Pete Buxtun says
Gross.
Pete Buxtun says
Maybe they could call it “Ellen’s”!
John Massey says
Sounds like someone is afraid that the college students will just go across the street to where they have gone for decades, it won’t matter to them what name is over the door.
joe diamond says
John,
There was a problem before the college was built. In those days the kids just wandered from the liquor store to the town. Then the college was built; constructed right between the town and the liquor store. The kids stopped wandering around town and started wandering their new campus (L. field). So what you are observing is actually an instinctive response. They used to wander in V shaped formations, but decided that was for the birds. Any other questions?
Joe
Keith Thompson says
As a contrast…in the last several months, I have heard that Elkton had several liquor stores or establishments close likely due to the increase in the state alcohol tax since Elkton residents can simply hop, skip or jump across the state line and get their booze in Newark or Glasgow.
gerry maynes says
Hi Keith, actually those liquor stores in Elkton located near the DE line existedd for years due to a law that kept Booze stores closed in De closed on Sundays. The state of De changed the law due to lost business about 5 years ago. The recent Tax icrease by Governor Shifty and the Boys was simply the death sho.
joel brandes says
Don’t forget competitors from Middletown and Dover. Many Marylanders shop there, probably also buying liquor. No sales tax. Makes one wonder why anyone would want to open a liquor store in C-town.
Keith Thompson says
Of course, but Chestertown residents don’t go to Middletown or Dover with the sole purpose of buying liquor. What they do is go to Middletown or Dover to buy large ticket items sales tax free or simply for things they can’t get in Chestertown, and then shop the liquor stores there out of convenience. The best way to economically support Chestertown liquor stores is give Chestertown shoppers more retail options in Chestertown and fewer reasons to go to Middletown or Dover.
Jeremy Caponi says
How many liquor stores are in middle town….2 and there’s a good reason for that, Bulk Buying on the retailing side. it doesn’t make sense for there to be a whole lot of liquor stores in Middletown for the same reason it doesn’t make sense here. supply meeting demand .
Jack Dorsey says
Simply supply and demand.
Jeremy caponi says
Liquor buying laws have changed in the past 2 years, the old law stated the price of alcohol to the retailer must be the same regardless of the quantity the retailer buys. This way . No matter how big or small you were you able to compete with each other. The new laws allow Multi case discount to the retailer. Bottom line is if there’s too many hands in the pot the customer lose in the end because the retailers cannot justify buying large quantities to keep the prices reasonable.
Keith Thompson says
I would think the most successful retailers would have the ability to buy in bulk meaning that it should be harder for a new business to make it unless the owner of the new business has deep pockets.
Jeremy caponi says
Keath Thompson, you have a good point, but each brand requires a bulk buy to reduce the price. A retailer can not justify buying a large amounts of one brand if there’s not enuff consumers (do to saturation) to purchase them in a timely manner. Again the customers are affected in the l ong run. can’t counties total population is 20 thousand people (the lowest populated county in Maryland ) and is only projected to be 22 thous.and by 2020 and only 23 thousand by 2030 (FOR THE WHOLE COUNTY) according to the US Census Bureau . You do the math .
Jeremy Caponi says
Kent countys total population
Keith Thompson says
But here’s where the math doesn’t tell all of the story (and has absolutely nothing to do with how the liquor industry works and I’ll defer to you on this), but when you look at the number of Kent County residents, that doesn’t mean that the total population is actually your market because the population has the ability to vote with their feet. One does not need to do business in the county one resides in meaning that the county has the ability to lose potential customers to other locales and it also has the ability to attract customers from other locales. Keep in mind, Middletown business markets Kent County as a part of its potential customer base.
I tend to look at the issue on a philosophical basis rather than on a mathematical one. To me, you can ask whether or not a community can have too many liquor stores, but is that the best question to ask? To me it’s more important to ask who should make the decision on the number of liquor stores a community can have? The government or the marketplace? If you say the marketplace, the question will be answered on its own based on who survives and who doesn’t. If you place the decision on the government, how do they determine the proper number and how do they choose who can do business and who can’t? If you limit the number of opportunities in a community, don’t you reduce the incentive of a business to provide better service or prices if they know that a competitor can’t challenge them? Think about it…it’s possible for a community to have a small number of a type of business that are all competent and a newcomer will struggle to survive against them. It’s also possible for a community to have a large number of a type of business that would be vulnerable to a newcomer or two if the newcomer provides a better business model. How is the community to know what they have if the choices in the marketplace are limited? Mathematical analysis doesn’t answer these questions.
Jeremy Caponi says
I don’t disagree with your philosophical point. businesses should have adequate competition, so where do you draw the line? Is 6 not enuff? How about 10? in regards to who decides, Are you saying we should allow any type of business to open in chestertown regardless of what it brings to the table? How about Night clubs, strip clubs exe., Should they be allowed to open with out government approval and see if they survive. How about the effect on the community and its appearance ? All these things should be taken into account. This is why liquor licenses where put in to effect in the first place.
Keith Thompson says
Jeremy, every community is different with some stricter and others more restrictive. Just limiting the conversation to liquor stores, my basic thought is that if you allow one person to own and operate one you must allow any other qualified operator to open one regardless of how many you have. If you limit the numbers, you give the government the ability to arbitrarily choose winners or losers. I don’t think government should have that role.
Jeremy Caponi says
Keith, I don’t think the government is choosing the winners or losers , just the number of players on the field.
Keith Thompson says
Even if the government is limiting the number of players on the field, it is picking winners and losers. If the town is going to place a limit on 8 liquor stores, who’s to say that the 9th one who isn’t allowed to play wouldn’t be better than one of the players already in the game?
Stephan Sonn says
So a new competitor will operate
from the old C town location.
Landlords revenge and the free market?
Patrick Byrne says
Many companies pay rent on vacated space if they do not want a competitor to move in to the old location until customers can be trained to come to the new store. If the license is granted the business environment will be relegated to natural selection. Perhaps C-Town Liquors should start a Washington College discount club for Staff, Alumni and current Students of legal drinking age.
Linda Parry says
Where I come from, plenary and retail liquor licenses are put up for sale, (by closed bid), based on population figures. Think Chestertown – and maybe even Kent County – would do well to follow that example.
Gerry Levin says
Please do not discriminate against us alcoholics. We like as many liquor stores as possible. I’m hoping eventually there will be one on every corner!
joel brandes says
Gerry:
I have a nephew who insisted that sources of booze should be no far apart than he could crawl. We’re waiting for a liver donor.
joe diamond says
Liquor store or alcoholic?
(on each corner?)
Actually……there has to be a constant number of customers and as the number of stores increases all businesses might end up sharing a smaller slice of that constant number. Aside from the store owners, everyone else benefits. The town gets the license fees from each owner regardless of sales; more licenses = more $$$$$$! The state gets the same slice of tax. The federal tax is also built into everything else. The pie is only so big.
Joe
Mark Andrews says
Let the best man win. Free enterprise. Your choice, but I’d shop at the store with the best price, selection and service.
Steve Payne says
I would say Chestertown does have too many liquor stores:
https://www.dropbox.com/sh/da9j43o1t4plvr2/IX9gWvroyn/Chestertown%20Retail%20study.pdf
Keith Thompson says
So who makes the decision on who stays and who goes? Who is allowed to open a store and who isn’t? If you don’t allow the marketplace to make the decision, what else do you base the decision on?
joel brandes says
Slightly off topic, but the state regulates what companies are authorized to sell insurance. You can’t sell insurance across state lines. Yes, a medicare supplement is an exception, and an important one. The consumer can compare charges for the same coverage. Not so easy for other forms of insurance. Does anyone seriously want government to determine the number of business types permitted or who is authorized to establish that business? Some business will fail and others succeed. That is free enterprise and it goes hand in glove with “Risk -reward” Those that take the risk and succeed are rewarded. The failures lick their wounds, and hopefully learn to do better next time.
Stephan Sonn says
Natural selection will prevail.
Steve Payne says
The Liquor Board decides and I’m not sure what, if any, justification or need must be shown. I know they do criminal background checks etc. on the applicant but other than that I really don’t know.
joe diamond says
Keith,
There may be an answer. Another aspect of this question may be….Who can continue to stay in business? The State of Maryland strictly controls the wholesale price of liquor to discourage competition and the resultant competition that could lower prices…and therefore increasing alcohol consumption. There is no price bend for high volume retail sales. As I read it, retailers must sell on close margin & high volume to survive. In the setting where there is one retailer he can ask his price and expect to do alright. In the setting where there are numerous retail competitors they must exist on the slim margin produced by the competition until one or more vendors leave the market.
So the guy with the deepest pockets can continue…….raising prices when he is the last man standing.
The county license fees remain constant and available to anyone. The state controlled price limits what will happen.
Joe
Keith Thompson says
Of course, if state regulations are the issue, folks can simply vote with their feet and purchase their alcohol elsewhere. Why not make a stop at a Middletown liquor store after you finish your shopping at Wal-Mart, Kohl’s, Lowe’s, Home Depot, etc.? Whether or not we’re talking about liquor stores, if the state is making it uncompetitive to do business why would local government want to make it more uncompetitive?
joe diamond says
Keith,
I read the debate on the liquor law…. Dundalk Liquor vs MD was one of the cases. Anyhow, one side of the question said competition would lower prices and increase alcohol consumption. While the state of MD did license and allow alcohol sales it also had a healthy responsibility to regulate its sale. So for years all alcohol wholesale transactions went through a few selected wholesalers and no price break was allowed. The Comptroller was supposed to set a fair price but it seems unclear if that ever happened.
So, to answer your question:
Whether or not we’re talking about liquor stores, if the state is making it uncompetitive to do business why would local government want to make it more uncompetitive?
‘Cause!
Why?
It just is!
But why?
Look, this is Maryland. Do I have to explain everything…………don’t make me stop this car!
But?
NOT another word!
Joe
joe diamond says
This is why you make your words out of ice cream………….easier to eat them!
Above Jeremy reports a recent reversal of what I was aware of & found in a little search. They have done exactly what they said was not good to do!
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Jeremy caponi says:
August 13, 2013 at 6:13 PM
Liquor buying laws have changed in the past 2 years, the old law stated the price of alcohol to the retailer must be the same regardless of the quantity the retailer buys. . . . The new laws allow Multi case discount to the retailer.
Bottom line is if there’s too many hands in the pot the customer lose in the end because the retailers cannot justify buying large quantities to keep the prices reasonable.
—————————
So confused!
Joe
Ben Ford says
Could someone besides me look at the difference between buying beer and liquor in Delaware and Maryland? I don’t actually think it IS cheaper, certainly not cheap enough to warrant the drive. Delaware has an excise tax per volume which is twice that of MDs. Could someone not as math-challenged as I run the numbers on the DE excise tax vs. the MD sales tax? Having tried to buy beer and wine in DE in the past I certainly don’t see it being less expensive, in fact it seems the opposite is true.
joe diamond says
Don’t think things were ever presented as cheaper over there.
For sure the one hour each way drive would remove any savings. Think 6% ST produces six dollars per hundred / sixty dollars per thousand savings. If you make the trip and make a purchase to save the ST……you already have an answer to why MD services are being cut back. Big ticket items like cars and boats get taxed when you license them so forget that one.
We go to Dover & Middletown only to get things that are not available around here. Sometimes we find better prices with volume purchases. But the cheap beer thing goes away because DE charges a nickel a can for deposit to stop littering. AND no, they won’t take MD cans you might have…….the DE stores want only the cans you purchased from them.
It’s a wash, in my opinion.
Joe
Keith Thompson says
Ben, the point isn’t that Chestertown residents are going to Delaware to buy alcohol because it may be a few pennies cheaper there. The point is that when Chestertown residents go to Delaware to get things they can’t get in Chestertown and when they’re in Delaware, they’ll get their alcohol there if it’s a few pennies cheaper because they are already there. If you want to help the liquor stores in Chestertown, give Chestertown residents fewer reasons to go shop in Delaware.