The new City of New Orleans Comprehensive Zoning Ordinance (“CZO”) became effective on August 12, 2015, but various interested parties have already begun the process of amending this newly-adopted ordinance. Last Thursday, the New Orleans City Council passed an amendment to the definition of a “standard restaurant” that provides further support for restaurants seeking an alcoholic beverage license. The prior definition provided that alcoholic beverage sales had to be “incidental” to the serving of food, while the new definition defines a “standard restaurant” as earning more than 50 percent of its revenue from food sales. Opponents are concerned about a restaurant closing its kitchen and operating as bar, as long as it sold enough food during the day to cross the 50 percent revenue threshold.

Councilwoman Nadine Ramsey is also pushing for several other amendments to the CZO that have a direct impact on retailers. The other amendments would (i) allow restaurants all over the city to sell packaged liquor (ii) allow live entertainment in all French Quarter restaurants and courtyards, (iii) remove requirement that applicants for alcoholic beverage permits show how close they are to churches and schools, and (iv) remove requirements for maximum square footage for a holding bar (the area where restaurant patrons can grab a drink before they are seated for a meal). These proposed amendments have experienced significant pushback from neighborhood groups, and are not currently scheduled to be brought before the City Council

We are also pleased to report that the offending language in the draft CZO (reported here) that threatened the existence of microbreweries and microdistilleries was amended prior to passage. Special thanks to Councilmember Latoya Cantrell for supporting New Orleans small businesses in amending the ordinance.  The adopted definitions of “micro-brewery” and “micro-distillery” are as follows:

Micro-Brewery. A facility licensed as a “Microbrewer” as defined in Title 26, Section 241, of the Louisiana Revised Statutes. The facilities may include an on-site tasting room with retail sales of alcoholic beverages for consumption on or off the premises. An on-site tasting room with retail sales of only those alcoholic beverages produced at that facility shall be a permitted accessory use, subject to the use and parking standards of a bar and any limitations provided for in state law. An on-site tasting room with retail sales of alcoholic beverages purchased from a licensed wholesale dealer shall be considered to be a bar for the purposes of this Ordinance. The facilities may also include other uses such as a standard restaurant, bar, or live entertainment as permitted in the zoning district, subject to the use standards of Article 20, parking standards of Article 22, and any limitations provided for in state law.

Micro-Distillery. A facility licensed as a “Microdistiller” as defined in Title 26, Section 2, of the Louisiana Revised Statutes. The facilities may include an on-site tasting room with retail sales of alcoholic beverages for consumption on or off the premises. An on-site tasting room with retail sales of only those alcoholic beverages produced at that facility shall be a permitted accessory use, subject to the use and parking standards of a bar and any limitations provided for in state law. An on-site tasting room with retails sales of alcoholic beverages produced at that facility and any other alcoholic beverages purchased from a licensed wholesale dealer shall be considered to be a bar for the purposes of this Ordinance. The facilities may also include other uses such as a standard restaurant, bar, or live entertainment as permitted in the zoning district, subject to the use standards of Article 20, parking standards of Article 22, and any limitations provided for in state law.