A bill to add 10 new liquor licenses in San Luis Obispo County is on the State Senate floor, but since 2014, there haven’t been any new on-sale liquor licenses available to incoming restaurants and bars in the county.
WATCH: Bill on Senate floor to bring new liquor licenses to San Luis Obispo County
“There were almost none available," La Esquina owner Leonard Cohen explained of the liquor licenses in the county. "That's why they became scarce and that's why the price keeps going up.”
But there is another way that 15 establishments in the City of San Luis Obispo have been able to sell liquor, by making their own.
For Cohen, he produces about 25 to 30 gallons a month of agave spirit.
Instead of a liquor license, which for other establishments can cost hundreds of thousands of dollars, they have a Type 74 craft distillery license to make their own agave spirit, which goes into their award-winning margaritas.
“[The purpose] is just to help those craft distillers get their product out to the masses," Alcoholic Beverage Control of California Public Information Officer Devin Blankeship explained of the license.
WATCH: San Luis Obispo County businesses await approval of more liquor licenses
In order to gain new liquor licenses, the ABC has to see population growth. Because there hasn't been much in San Luis Obispo County, new businesses like Condesa and Kiko have instead been able to utilize these distillery licenses, which cost a little more than $1,000; however, Cohen warns the production is costly.
“The equipment, the space, the management, the permits and everything. It adds up to a lot of money, so you're really not saving that much money,” Cohen said.
The last time San Luis Obispo County received new liquor licenses was back in 2014. Devin Blankenship has seen the market grow for craft distilleries and more restaurants looking to add this licensing to their establishment.
“It's definitely a newer license type," he said. "I think people are figuring out that it can help their business if they are creating small craft distillery spirits that they want to sell.”
For Cohen, he warns that using the license shouldn't just be about avoiding the cost of an on-sale liquor license.
“You're supposed to be doing it not to avoid all the cost of saving money for a liquor license. It's that you're actually having fun doing it, and it's going to benefit your business and it makes sense," he said.
