We are sharing some important information with you that the Liquor and Cannabis Regulation Branch sent out October 18, 2023.

Rising Tide is strongly opposed to this initiative at this time when our Industry is faced with so many other challenges. If you would like guidance with how to set your Food Primary establishment up for success in the face of this new action, please reach out to us. We are here to help!

Read the LCRB communication here:

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UPDATED INFORMATION FROM THE LCRB OCTOBER 24, 2023:

• The LCRB recognizes most Food Primary (FP) licensees are already operating in compliance with their licenses.
• The purpose of the LCRB’s previous communication was to provide operators with essential information to help review their operations and ensure that their business decisions align with the compliance requirements of their licence type.
• The LCRB is committed to supporting all operators in maintaining compliance and making informed business choices that benefit their establishments.
• The LCRB will employ a wide variety of criteria to inform the program and where inspections take place, considering factors like entertainment, advertising, customer complaints, and other relevant aspects of FP operations.
• It’s important to note that banquets and events like weddings are not within the scope of this inspection program. This initiative primarily focuses on the day-to-day operations of Food Primary (FP) establishments.
• The inspection program is designed to work collaboratively with licensees, offering support and guidance to help ensure compliance. Enforcement action may be initiated for egregious instances of non-compliance or where other efforts have not achieved voluntary compliance.

Rising Tide Consultants is proud to be a member of the Hospitality Sector Working Group and is happy to share this News Release from the City of Vancouver documenting the progress to date. We will continue to act on behalf of our clients to ensure real change is occurring in the best interest of the industry.

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City of Vancouver

News Release

October 3, 2023

Hospitality Sector Working Group quick wins and strategic priorities propel industry forward

Less than three months since the City established the Hospitality Sector Working Group, it has become a catalyst for innovation and collaboration, spearheading important changes by breaking down barriers and streamlining processes. 

“The hospitality sector is a cornerstone of our city’s economy,” says Mayor Ken Sim. “I am proud of our proactive approach to listening and responding to the sector’s needs. We’re here to listen, learn, and work hand in hand with the industry. Together with industry leaders, we are removing barriers and creating a more supportive and prosperous environment for local businesses while enhancing the experience for residents and visitors.”

The City has made significant strides in implementing recommendations from the working group, such as simplifying processes so businesses can focus on innovation and growth. These include:

1. Streamlined liquor licensing: businesses can now submit development permits and liquor licensing applications together as concurrent applications. 
2. Simplified business licencing process for restaurants: applications for a new restaurant business licence can now be submitted at the same time as a development permit and liquor licensing applications.
3. Enhanced occupancy load process: floor plans can now be submitted with seating calculations to determine occupancy load, allowing fire occupancy load permits and development permits to be approved simultaneously.

“Having a direct link between industry, Council, and City staff allows us to quickly implement smart, innovative solutions to support Vancouver’s hospitality industry,” said Jeff Guignard, Executive Director of BC’s Alliance of Beverage Licensees—an association representing BC’s pubs, bars, nightclubs, and private liquor stores. “Our focus in the coming months will be to find practical and meaningful solutions to reduce red tape, cut costly delays, and give industry the tools it needs to prosper.”

In consultation with the working group, the City will be actively exploring creative solutions to enhance Vancouver’s hospitality scene, including restaurants, bars and pubs, breweries and distilleries, and tourism-related services. 

“Vancouver’s hospitality sector is an integral part of both the economic and cultural fabric of our city, and the establishment of the hospitality working group indicates a much needed focus and prioritization of the industry,” said Hospitality Vancouver Association (HVA) spokesperson Laura Ballance. “The membership of HVA is looking forward to working in a collaborative nature with City officials and staff on issues facing the sector.” 

Among the priorities identified for future work, the working group will help inform the City’s ongoing efforts, including:

1. Identifying opportunities to streamline and resolve provincial and municipal liquor licensing timelines.
2. Exploring options to reduce or remove distancing requirements for liquor establishments to increase opportunities for new and existing businesses.
3. Reviewing the City’s year-round patio program to support a vibrant restaurant scene in Vancouver.
4. Evaluating options to simplify regulations related to tasting lounges at breweries and distilleries so that businesses have clarity and can better promote their brand.

“We’ve had some remarkable quick wins, but there’s still lots of work to do,” says Andrea Law, General Manager of Development and Business Licensing. “Together with the working group, the City is committed to finding practical solutions to challenges faced by businesses in the hospitality sector. Our approach to collaboration is grounded in deep respect for the many local entrepreneurs and businesses that form Vancouver’s diverse hospitality scene.”  

The City will provide updates on the working group through a designated Hospitality Sector Working Group web page, which also hosts valuable resources for business owners.

New City of Vancouver hospitality working group to address longstanding policy issues

“I am very pleased to see that the City of Vancouver is committed to real change for the hospitality industry. It is an honour to be a part of this working group and I look forward to the collaborative effort to streamline processes and eliminate costly delays. We are all committed to seeing progress and advancement with antiquated laws and regulations that need to be updated. I wish to thank Mayor Ken Sim and the Vancouver City Councillors for their support in taking a hard look at longstanding policy issues that have challenged so many of our clients.” – Bert Hick, President & Founder – Rising Tide Consultants

For Immediate Release
June 14^th, 2023

Vancouver, BC – On Friday, Mayor Ken Sim was joined by members of Vancouver City Council and representatives from the hospitality sector to announce the creation of a new City of Vancouver hospitality sector working group.

“With today’s announcement of a new hospitality working group, we have an opportunity to help create a better, more vibrant, and prosperous future for our local economy,” said Councillor Lisa Dominato. “We’ve heard a clear demand for policy change from local businesses and this working group is an important first step.”
 
The working group is a City-staff led initiative, overseen by the Development, Building, and Licensing department. Its members include city staff and representatives from the hospitality sector. The working group’s goals are to identify, adjust, and eliminate red tape that present challenges to businesses in the sector.

“The hospitality sector is critical to the local economy,” continued Dominato. “That’s why the City is inviting members of the hospitality industry to participate in this collaborative working group, with a clear goal of making life easier for our local businesses.

While certain recommendations from the working group may require Council approval, the direct link between industry and City staff will allow policy change to occur at a faster rate.

“Vancouver is open for business and its time for our City to lose its “no fun” reputation once and for all,” said Vancouver Mayor Ken Sim. “We all want to see these businesses succeed and we want the City of Vancouver to play a big role in helping make that happen.”
 
The working group has informally met once already and will continue to meet throughout the summer with the goal of providing an update in the Fall on progress being made.

Media Contact:

Taylor Verrall

Director of Communications, Office of the Mayor

604-404-5651

taylor.verrall@vancouver.ca

Pacific Solutions Contracting does commercial construction differently. And here at Rising Tide, we couldn’t be happier! We’ve seen way too many of our industry friends struggle through the complexities of construction over the years. It can be a daunting path to go down, so Pacific set out to change that experience –  proving why they are quickly becoming Vancouver’s leading boutique hospitality construction company. 

Integrated Construction Partner

At the heart of it all, Pacific takes a more integrated and collaborative approach than a traditional general contracting firm. This makes them an excellent partner for both entrepreneurs and business groups looking for a trusted partner in construction to help lead them through a renovation or new construction while they look after their business. 

Pacific Solutions Contracting has intentionally built their organization in a way that supports their clients throughout the full life cycle of their businesses, with personalized services that include:

• Early concept planning guidance.
• Location and lease review.
• Pre-construction management.
• Consultant & network referrals for architects, designers, and engineers.
• Marketing content support.
• Post-construction support and maintenance.

Hospitality Experts & Resource

Since their inception in 2010, Pacific has sharpened their expertise in hospitality construction. They understand where the red flags are hiding, where the common pitfalls are that business owners can find themselves in, and they are tapped into market pricing, supply chain logistics, and construction economics. With their finger on the pulse, their team of “Solutionists” are proactive in scheduling, budgetary forecasting, and are experts at finding creative solutions for any obstacle that may come up throughout the construction process.  

Pacific is humbly honored to showcase over 150 social destinations in their portfolio. From Michelin-starred restaurants to your favorite neighborhood coffee shop, you’ve probably enjoyed a number of their establishments such as:

• Tacofino (Ocho, Oasis, Kits, Hastings Street, Gastown)
• Nook Restaurants (Olympic Village, Kitsilano, Shipyards)
• Published
• Steamworks Mount Pleasant
• Mount Pleasant Vintage
• Ca Marche
• Lumine Coffee
• Lee’s Donuts
• The Gray Olive
• Juke
• Cartems Donuts
• Kam Wai Dim Sum
• Catch 122
• Local Public Eatery (River District)
• La Grotta Del Formaggio
• Jungle Room
• Nanoose Bay Cafe
• Potluck Cafe Society

From Their #madebypacific Clients

“I have never encountered a construction firm with an entire team of people who care so much about me, my priorities, and my bottom line. It was a pleasure getting to know the team during the construction process and many have become regulars at my establishment. Having a construction partner like Pacific is an essential part of launching a new business, and I always appreciate knowing they are there to support my business for anything I need in the future.”

Bryan Markovic | Owner/Operator, Steamworks Mount Pleasant

“We always felt like Pacific had our best interests in mind in order to keep control of our budget and schedule. The regular meetings and constant contact with their operations team ensured we were always informed every step of the way. The quality of the millwork craftsmanship by Pacific is also evident, and everything came together exactly as we had envisioned.”

Cody Allmin | Owner, Published Restaurant

About Pacific

Pacific was born out of a love for the city that they call home. Their team truly takes pride in seeing our local communities grow and evolve through unique spaces. They believe in supporting all creative businesses and helping them find success. Regardless of size, scope, complexity, or budget, the team at Pacific is always happy to guide the community in the right direction when it comes to any questions (small or large) about commercial construction. Feel free to reach out and say hi!

Email: info@madebypacific.com

Phone: 604 620 3993

Web: www.madebypacific.com

Instagram: @pacificsolutionscontracting

MINORS AS AGENTS – STRATEGIC PROTECTION PLANS

Rising Tide Consultants has 35 years of experience in Liquor Licensing and Compliance and is the expert in navigating challenging situations for hospitality and retail. The Government Minors As Agents Program is something all owners and operators should be watching out for to avoid a $7,000 fine and possible 21 day closure!

In November 2022, the Liquor & Cannabis Regulation Branch announced they were resuming the Minors as Agents Program of sending a minor into restaurants, bars, and liquor stores without providing identification. They have been very successful in catching licensees not requiring 2 pieces of valid identification in these transactions.

Rising Tide Consultants can help you avoid falling victim to this targeted program by arming you with the right information and training to lay the proper groundwork to avoid penalties or dispute a charge if you are caught in non-compliance.

We will do an on-site visit to your establishment to thoroughly audit your operation and provide you with a personalized Strategic Plan that will inform you of what you can do to set you up for the best chance of success.

We will address proper policies and procedures with regard to ID practices, communication to your staff and management, and updated systems you can put in place to ensure compliance and give you the defence of due diligence. We can also customize a policies and procedures manual for your business for an additional fee.

Value $1,200
Feature Rate $499 (+applicable taxes)

Contact us now to lock in this feature rate and protect your business against this program that the branch is making a very significant priority at a time when the industry is still fragile.

info@risingtideconsultants.ca
604.669.292

Bert Hick, a liquor and cannabis licensing expert who heads Rising Tide Consultants, said he is “saddened” by the news and fears for the whole hospitality industry.

“A lot of it was COVID,” said Hick, but it’s also labour shortages, rising costs and the looming payback of pandemic financial supports from the federal government.

“It’s a bit of a perfect storm,” said Hick. “The hospitality industry is very, very fragile right now. My prediction is you’re going to hear more horror stories in the coming months” with the COVID relief payments coming due at the end of the year.

The Donnelly Group, which owns pubs and clubs that are fixtures in Vancouver’s nightlife and hospitality industry, is filing for creditor protection.

The Vancouver-based company, which operates more than a dozen pubs, clubs and restaurants in Vancouver and Toronto under the Freehouse Collective, said Wednesday it has started proceedings under the Companies’ Creditors Arrangement Act (CCAA) to revise the terms of existing loans and restructure debt it needed to take on to survive COVID-19.

The Donnelly Group has opted to initiate the creditor protection process to restructure to avoid closing locations and laying off employees, said company founder and CEO Jeff Donnelly.

“We could have gone one of two directions. We could have, frankly, just closed a bunch of our businesses and just stuck with the real winners, and we would have been OK,” Donnelly said Wednesday. “But we might have lost half of our workforce. And when you’ve got 800 employees, that just wasn’t an option for us.

“This is what we need to do to keep these places open, so we’re going to do it,” Donnelly said. “We’re going to come out stronger than we were before.”

In a petition filed in B.C. Supreme Court on Tuesday, the company asked the court to appoint Ernst & Young as a monitor over its affairs as it works out a restructuring plan with its creditors.

The petition involves 12 pubs, cocktail clubs and restaurants in Vancouver — including the Lamplighter, Butcher & Bullock, and Brass Fish — and two in Toronto, as well as three Barber & Co barbershops, Bomber Brewing in East Vancouver, and a company that handles the cleaning of the hospitality venues.

In total, 750 people are employed in Freehouse’s hospitality venues, 40 at Bomber Brewing, and 25 at Barber & Co.

A retail cannabis business also owned by Donnelly, called Lightbox and doing business as Dutch Love, is subject to separate insolvency proceedings, after applying for creditor protection late last year.

The company said the move was necessary to survive the crippling economic impact wrought by the pandemic on the hospitality industry.

It will work on a restructuring plan and streamline operations in the next couple months as part of the proceedings, but expects to continue operations at its locations and “engage its employees at current levels during the CCAA proceeding and afterwards.”

The company said its decision to restructure isn’t a reflection of its employees but a “strategic response to the industry-wide impact of the COVID-19 pandemic.”

B.C. Restaurant and Foodservices Association head Ian Tostenson said Donnelly’s entrepreneurship and vision were worthy of him being named to the B.C. Restaurant Hall of Fame pre-pandemic, but the expansion into barber shops, cannabis and brewing proved costly with the COVID downturn.

“It was working then in that economy,” said Tostenson. “You could fuel that kind of machine, that kind of business then.”

He noted the whole industry got hit hard, acting as “a bit of a canary in the coal mine” for retail generally because of closures, capacity limits and other challenges.

Then, when customers started coming back, inflation hit along with supply chain challenges, increasing labour costs and a shortage of workers.

“We’re seeing bankruptcies up 116 per cent year-over- year,” said Tostenson, and less than 50 per cent of all restaurants in a recent survey were making money.

Bert Hick, a liquor and cannabis licensing expert who heads Rising Tide Consultants, said he is “saddened” by the news and fears for the whole hospitality industry.

“A lot of it was COVID,” said Hick, but it’s also labour shortages, rising costs and the looming payback of pandemic financial supports from the federal government.

“It’s a bit of a perfect storm,” said Hick. “The hospitality industry is very, very fragile right now. My prediction is you’re going to hear more horror stories in the coming months” with the COVID relief payments coming due at the end of the year.

“A lot of business owners took those loans on the premise (business) would come back,” noted Tostenson. “And it did for a couple of months, but then inflation kicked in.”

Hick and Tostenson both praised the Donnelly Group as exemplary operators with an impeccable record in the industry.

Like most in the hospitality industry, the Donnelly Group’s businesses were shuttered in March 2020 as a result of the pandemic and reopened gradually in the following years.

According to Donnelly Group’s petition filed this week, the businesses were able to maintain payment of debts until 2021, when they negotiated an agreement with BMO, the primary lender, to make monthly interest-only payments.

Once venues reopened in 2022, the businesses faced further economic challenges due to hikes in the minimum wage, supply chain issues, and rising insurance and interest rates.

Revenues have returned to 2019 levels, increased labour and operational costs mean thinner margins and a lower profit, said the company.

The hospitality entities listed in the petition currently owe BMO about $13.6 million, while Bomber Brewing owes $1.25 million, according to the petition. Their monthly debt servicing payments total about $295,000 a month.

While the petitioners have been able to make interest-only payments to BMO following a 2021 agreement with the bank, they “are not in a position to make principal repayments on a go-forward basis,” said the petition.

BMO supports Donnelly’s restructuring, and the lender has agreed in principle to restructure the company’s payments during the process, the petition says: “BMO benefits by the continued operation of the enterprise by present management, which represents its best prospect of recovery.”

Donnelly is also in arrears with some landlords to the tune of about $766,000, is in arrears for PST, and faces lawsuits from landlords and other creditors.

https://vancouversun.com/news/local-news/b-c-pub-chain-donnelly-group-seeks-creditor-protection

Think the Minors As Agents Program doesn’t apply to you? Think again

The ‘Minors as Agents’ program is ramping up inspections and enforcement. Are you prepared? Rising Tide provides support, knowledge and expertise in all facets of liquor licensing, compliance and enforcement issues. One of the hot topics facing the industry right now is the MINORS AS AGENTS program. 

Although it is commonly thought that retail liquor stores are the main targeted businesses for this initiative, it actually applies to all liquor primary, food primary, restaurants, pubs, cannabis stores as well as retail liquor stores.

The Minors as Agents program is funded and regulated by the Liquor and Cannabis Regulation Branch, whereby “youthful-appearing adults” are recruited to attempt to purchase liquor on the Branch’s behalf from businesses selling liquor or cannabis. The youthful appearance of the agents is intended to raise concerns by employees as to whether or not the agents were minors and proceed to require two pieces of proper identification before the purchase of liquor or cannabis is allowed. The issue is the agents can often appear older, and if a judgment call is made to not ask for ID, the business can be in some very hot water. 

The first infraction is a $7,000 FINE or 7 day suspension. If you pay this fine and the infraction goes on your permanent record, then your second or subsequent infractions within a calendar year (and you can be sure that they will be targeting your establishment again) could result in a higher fine or up to a 21-DAY SUSPENSION of your liquor license.

Rising Tide Consultants are experts on this program, so we can help your business take measures to protect against the risks and penalties and, if necessary, fight a non-compliance charge alongside you. We also do audits of licensed establishments to make sure they can pass a routine inspection by ensuring the proper policies and procedures are in place. Contact us now and learn how to avoid falling victim to this targeted program. Government is increasing its focus and has been ramping up inspections and enforcement last year, and it will be continuing in 2023.

Rising Tide can provide you with updated Policy and Procedure manuals, training on ID protocols and placement of appropriate ID signage within your establishment so that your staff are armed with the right information and training to lay the proper groundwork to avoid penalties or dispute a charge if you are caught in non-compliance.

We’re here to help.
Contact Us
Your Initial Consultation is Complimentary.

Bert Hick, President & Founder of Rising Tide Consultants, spoke March 8th at the Standing Committee on City Finance and Services on Vancouver’s efforts to liberalize rules governing alcohol and the hospitality industry. Up for discussion was a “dual license” that would enable an establishment to serve food during the day and then transition into a bar in the evening.

Vancouver council considers three “dual licence” applications, from Cinema Public House and Cold Tea, both on the Downtown Granville strip, as well as Hamburger Mary’s in Davie Village.

Bert addressed Council asking for 2 Miracles.

“Miracle #1 is to amend current legislation to allow new establishments that are opening to apply for a dual license right off the bat. Right now, you have to have an existing Class 1 or Class 2 license in order to apply for a dual license.”

“Miracle #2 is to get rid of the antiquated policy that predates 2005 that simply does not work and doesn’t exist in any other city, regarding the minimum distance between certain classes of liquor primary establishments, when existing establishments are seeking dual licensing.”

Following Mr. Hick’s address to Council, we are pleased to announce that Cinema Public House has been approved for their dual license!