Virginia lawmakers have approved changes to the state’s long-standing food-to-alcohol sales requirement for restaurants, easing restrictions that many operators have said no longer reflect how the industry works.
The legislation, HB975, passed during the 2026 General Assembly session and modifies the food-to-beverage ratio for businesses with mixed beverage licenses. The requirement dates back to Virginia’s post-Prohibition liquor laws in the late 1960s and has remained largely unchanged since the 1980s. The bill was introduced by Elizabeth B. Bennett-Parker (D–House District 5) and is expected to take effect July 1, 2026.
The change does not create a new bar license in Virginia, but it does adjust how restaurants are allowed to balance food and alcohol sales.
We reported on this issue a few months ago HERE.
Before and after
BEFORE: Most places had to get at least 45% of their sales from food.
NOW, it depends on how much food they sell each month:
- If a place sells $48,000 or more in food per month. No food-to-alcohol ratio requirement
(Think higher-volume, full-service restaurants places like Lemaire Restaurant, Stella’s, or Perly’s.) - If they sell $25,000 to $48,000 in food per month, Must hit 30% food sales (down from 45%)
(Think mid-sized neighborhood restaurants or busy casual spots places like The Roosevelt, Little Nickel, Cobra Cabana or maybe Bamboo Cafe.) - If they sell $4,000 to $25,000 in food per month. Must still hit 45% food sales
(Think smaller restaurants, newer spots, or places with limited kitchens.) - Small spots with fewer than 30 seats and under 60 total occupancy. Only need 30% food sales, even in the lower revenue bracket
(Think intimate cocktail bars or small neighborhood spots with limited seating and a light food program.)
Additional requirement: Restaurants must have at least as many table seats as bar or counter seats, reinforcing their classification as restaurants rather than bars.
What it means locally
For restaurants in Richmond, the biggest impact is on flexibility, not a fundamental change in licensing.
Higher-volume restaurants that already generate strong food sales will no longer have to track a ratio, removing a compliance issue that has long been part of day-to-day operations. Mid-sized restaurants get more breathing room with a lower threshold.
The most noticeable shift is at the smaller end. Restaurants with fewer than 30 seats and occupancy under 60 can now operate under a 30 percent food sales requirement, allowing for a greater share of revenue from alcohol. That does not create a new bar license or eliminate existing restrictions, but it may make it easier for smaller, bar-leaning concepts to operate within the current system.
The Virginia Alcoholic Beverage Control Authority has been directed to monitor how the new system affects compliance and food consumption, with a report due to state lawmakers by November 1, 2027. Lawmakers are expected to use that data to evaluate whether further changes are needed.
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