W’burg El Dorados could have liquor license by end of summer

By the end of summer, Williamsburg will likely have its second restaurant, which serves alcohol.

El Dorado Mexican Restaurant is running an advertisement in this week’s edition of the News Journal declaring its intent to apply for a restaurant liquor and wine by the drink license no later than June 1.

In March 2012, Williamsburg voters approved the sale of alcoholic beverages by the drink in restaurants by a 14-vote margin.

The restaurants must have seating capacity for at least 100 people and derive 70 percent of their profits from food sales in order to serve alcohol.

Williamsburg Mayor Roddy Harrison, who also serves as the city’s alcohol beverage control (ABC) administrator, said that El Dorado is currently finishing renovations, which would expand its seating capacity to slightly more than 100 seats making it eligible to apply for a liquor license.

He said the restaurant decided to go ahead and start the license application process so that it could begin serving alcohol shortly after the renovations are complete.

Harrison said he has seen two possible configurations for the restaurant, one of which would allow for 108 seats and another that could allow for 116 seats.

Harrison said that as city alcoholic beverage control administrator, he first would have to first approve the liquor license application and then it would proceed to the state ABC board for approval.

Harrison said that the state is currently backed up with applications due to recent wet/dry elections so it might take the state as long as 30 – 60 days to approve the license.

Hong Kong Buffet became the first restaurant to legally serve alcohol in Williamsburg when it obtained a liquor license effective Dec. 27, 2012.

Harrison said that so far, the liquor tax has only generated about $50 – $60 in tax revenue for the city. He said this represents two to three months of actual alcohol sales.

Harrison said Hong Kong Buffet owners have told him that the alcohol sales didn’t really increase their volume of business significantly.

Just days before last year’s alcohol referendum, Harrison announced during a city council meeting that he had been contacted by two different ownership groups, which planned to open different franchise restaurants in Williamsburg if the alcohol referendum were approved.

So far no new restaurants have opened in Williamsburg as a result of the alcohol referendum.

This has left some asking the question, where are the new restaurants?

It’s a question that Harrison has heard and he admits he knows what it looks like.

"It doesn’t happen over night," Harrison noted. "We are out there every day and talking every day. We do have some prospects."

Harrison said that he made two phone calls prior to last March’s city council meeting and both ownership groups told him the same thing.

Harrison said one group definitely wanted to open a restaurant in the region, didn’t think the vote would get approved here, and decided to go ahead and sign a contract locating elsewhere.

Harrison is hoping to hear back soon from the other restaurant ownership group.

Harrison said he thinks some of the bigger restaurant chains are waiting to see how alcohol sales go at existing restaurants before deciding whether to open here.

He thinks the economy is the biggest driving factor in no new restaurants locating here.

Harrison said he is starting to see the economy turning around and some retail businesses, besides restaurants, are talking about possibly opening in Williamsburg.

Harrison said that even though Williamsburg may not have idealistic demographics for a lot of businesses, this doesn’t mean that businesses can’t succeed here.

He pointed to Hampton Inn, which held a celebration and open house last week.

"They are doing better than they ever expected," Harrison said. "This tells everybody out there that Williamsburg is a place you can take a chance on. I think a lot of people just look at us on the computer with our demographics and go ‘we are not going to go there.’"