Regulation changes affect local Minnesota businesses 

Legal regulations can make or break a business. If businesses fail to comply with local, state or federal regulations, they can face large fines, sanctions and, in some cases, criminal penalties. However, in certain situations, these regulations can inhibit a business’ growth. Some advanced planning may be necessary so that businesses can be the most successful.

For example, Edina and Minneapolis have both traditionally had strict liquor laws. These laws have created ratios for bars and restaurants. These food-to-alcohol ratios have limited the types and amounts of liquor that local establishments can sell. Edina, in particular, has some of the strictest laws regarding alcohol in the Metro Area.

Recently, however, Minneapolis have given up some of its ratio requirements. The City Council voted to eliminate them in the fall last year. This has given Minneapolis a competitive edge over areas like Edina that retain this regulation. This means that establishments have a greater freedom in what it offers to customers. Unlike in Edina where a restaurant’s alcohol sales cannot exceed 40 percent of the establishment’s earnings.

After the changes in Minneapolis, many are calling for changes in Edina as well. These changes, proponents argue, are necessary for businesses to compete with nearby Minneapolis restaurants.

When a business is considering a location or an expansion, regulatory compliance issues should be part of its discussion. Business owners need to understand how particular regulations affect their business and what they need to do to avoid penalties. By understanding these legal complexities, businesses can avoid issues in the future. With the right help and planning, decisions can be made to help a business profit.

Source: Minneapolis/St. Paul Business Journal, “Edina may loosen liquor laws to boost restaurant business,” Mark Reilly, Feb. 23, 2015

Image Source: Star Tribune