What Is The Cost of a Liquor License in Boston?: PART II

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.

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