New Rules for Takeout Beverages

image from Jigger & Pony (jiggerandpony.com/)

The Executive Order granting off-premise privileges to on-premise licensees and take-out cocktails has passed!  The order used broad language, and pushed the specific rules to the county level. Please note the following is not legal advice, but rather general ideas of how to start making sense of it all.

EXECUTIVE ORDER NO. 20-04
“The suspension of the following laws, as allowed by federal law, pursuant to section 127A-13(a)(3), Hawaii Revised Statutes (HRS), in order for county and state agencies to engage in emergency management functions as defined in section 127A-2, HRS: Section 281-31, HRS, licenses, classes, to the extent necessary to enable the county liquor commissions to allow licensees to sell unopened beer, unopened wine, or pre-packaged cocktails with food for pick up, delivery, take out, or other means to be consumed off the premises, and to enable county liquor commissions to waive, suspend, or postpone any deadlines or administrative procedures. “
(https://governor.hawaii.gov/wp-content/uploads/2020/04/2004089-ATG_Executive-Order-No.-20-04-distribution-signed.pdf)

What this means:
The following language:

• “enable the county liquor commissions to allow licensees”
• “enable county liquor commissions to waive, suspend, or postpone any deadlines or administrative procedures.“​

County Rules

As the Counties believed that they could not make any changes to existing laws, this language empowers them to do so.  It also means that the County Liquor Commissions are responsible for the specific rules.

• Honolulu County
• Maui County
• Hawaii County
• Kauai County

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Honolulu County has specified the following amendment to the regular rules:
Licensees engaged in meal service (not Class-specific) may permit for pick up, delivery, take out, or other means for consumption off-premises unopened beer, unopened wine, or pre-packaged cocktails. Per the Governor's Executive Order No. 20-04, the product no longer has to be recorked or resealed in the original container as required by HRS §281-31(u).  This service is available for meals prepared for pick up or delivery (food order is required). Delivery must be in compliance with the requirements of Rule §3-82-36.4(a).  If the product is being provided for pick up or take out, licensees are encouraged to caution customers about “open container” prohibitions, which require the storage of the product in the vehicle’s trunk or area of the vehicle not normally occupied by the driver or passengers if opened (HRS §291-3.3).
With:
 §3-82-36.4. Deliveries. (a) Retail licensees may make deliveries of liquor to private residences or businesses with a bona fide order from the purchaser provided the licensee produces a receipt of delivery signed by a person verified to be of legal age at the delivery point.

Source: http://www.honolulu.gov/liq

Commission Emergency Rules, of the LC May 13, 2020 meeting,
per Governor's Executive Order 20-04

Holders of Class 2, 4, 5, 6, 12, 14 and 18 licenses may sell unopened beer, unopened wine, or
pre-packaged cocktails with food, for home delivery, provided that:

• Food is included with each delivery
• The delivery person is an employee of the license holder, at least 21 years of age
• The delivery person does not need to be a holder of an employee approved by the director card
• The delivery person confirms that the consumer receiving the delivery is at least
• 21 years of age and is the person who placed the order
• A photograph of the consumer holding the consumer's identification is taken and retained by the licensee
• Liquor shall not be delivered if the consumer is not present to receive the delivery or is not able to produce valid identification
  
  

Holders of Class 2, 5, 6, 12, 14 and 18 licenses may sell unopened beer, unopened wine, or pre-packaged cocktails with food, for take out or pick up, provided that:

• Food is included with each take out or pick up

Proof of the liquor liability insurance required by section 281-31 (s), HRS, is waived for the renewal of the liquor license, provided that:

• Licensee shall not receive their FY 2021 liquor license until proof of liquor liability insurance is provided prior to the reopening of the licensed premises.

Employee approved by the Director card expiration, as stated in Rules of the Liquor Commission, Section 08-101-70 (b) is extended to 90 days after the end of the emergency period, provided that:

• Cards contain an expiration from March 1, 2020 through the end of the emergency period only
  
  

Application for renewal of a liquor license, as required by Rules of the Liquor Commission,
Section 08-101-33 (e) is extended to 4:30 p.m. on June 30, 2020.

CLARIFICATION BY THE LIQUOR COMMISSION AT ITS JUNE 10, 2020 MEETING
Liquor Commission Emergency Rules, of the LC May 13, 2020 meeting,
per Governor's Executive Order 20-04

• Emergency rules are effective May 13, 2020 and rescinded when Governor's Proclamation ends.
• Delivery person does not need to be a holder of an employee approved by the director card.
• "Closed" containers shall be included under the definition of "unopened" and "prepackaged". ie: paper cup, mason jar, etc.
• Growlers are allowed for the listed classes for delivery and take out.

According to Hawaii County Director of the Department of Liquor Control, Gerald Takase, "In the County of Hawaii, we have actually been allowing to go alcohol since the restaurants and dispensers have had to shut down.  We also allowed sealed beverages since the start rather going through the charade of opening, just to reseal to allow as take out.  It made no sense to us to require the opening of the alcohol containers during these times of heightened sanitation.  Some of the other things that we have allowed is for drive up service for our retail outlets as well, to minimize the social interaction.  Some of our dispenser generals were really restaurants but never changed categories, we are allowing them to do to go alcohol sales as well in conjunction with their food service."

According to Gerald T. Rapozo, Director of the Department of Liquor Control: "Kauai has been allowing what the Executive Order established.  We will keep to what the EO says."

Open Container Law (As a best practice, post it in a visible place)

Per Our research, as a best practice, California's takeout cocktail amendment recommended the posting of the open container laws, and defined it as follows: "'Post' means to prominently display on the premises, post online, or present in whatever manner is necessary to ensure that the consumer purchasing, or delivery person transporting, such beverages is given notice of this warning." 
The following is a printable PDF of the Law which can be found here: 

Execution of Takeout Cocktails

Pre-packaged cocktails allow for better margins as it creates a value added product.  Similarly mixers can be sold with a bottle. Hawaii Beverage Guide’s article about Hawaiian Sun provides some flavor combination ideas

• Menu
• Packaging
• Labels
• Ice/Garnish
• ​Pick-Up

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Cocktail Menu
Pre-defined cocktails are the easiest on execution.  Once an order is placed sales will ideally happen online for prepayment, can be taken over the phone, or can be done upon arrival. 

Custom Cocktails made to order
Made to order cocktails can be shaken or stirred, then packaged, then refrigerated.  However, there is a degradation in flavors due to oxidation, and certain flavors degrade faster than others. 

• Facebook messenger might be able to be used to both chat with guests about what cocktail they want and for on-the-spot payment. 
• Similarly, the transaction can be done over the phone through conversation with the bartender.  The bartender can then take the credit card number over the phone.
• Payment: Made-to-order cocktails should require payment ahead of time to minimize losses due to someone not picking up their drink.
• We did not find an example of this in the research, it's execution is all theory.

Serving Size
Many programs found in our research have both single serving and multiple-serving sizes of the same cocktail.  Each serving, while 8oz is the standard for a cocktail, that typically includes ice while still accounting for the dilution from stirring or shaking.  So a 6oz portion size may be more accurate, depending on the drink.

The biggest challenge for Hawaii bars and restaurants would be to source cost efficient and easy to transport containers.

Mason Jars and other Jars

Mason Jars have been the most common option that we've seen, yet can be an expensive option.

• ​Walmart currently lists the 32 oz mason jars at $12.38 for 12 count ($1.32 per unit).  A 4 drink cocktail sold for $40 would have a container cost of 3.3%.
• Jar Return
  • Though sanitation is a potential issue, Alambic in SF (https://alembicsf.com/) uses a jar refund, then sterilizes the jar.  Think of it similar to a bottle return fee.  
  • For enhanced sterilization, the guest can drop off the jar directly into a bleach solution instead of having a bar team member come into contact with the jar.

Deli Containers

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​Deli Containers 
Though the price is attractive, the challenge of deli containers is spillage during transport.  However if the cost per 32 oz cocktail is in the $20 range, it may be the only way to make the container cost work if vacuum bags aren’t used.   An example usage case is at Lincoln Ristorante in New York City https://www.lincolnristorante.com/

Vacuum Bags

• Retailers like Target, Walmart, Costco, and Sam’s Club have consumer grade options for Under $150, whereas Young’s Scale company has commercial grade products.  The difference is the strength of the vacuum sealing, and the build quality for repeated usage. For example vacuum bags can be used for quick infusions.
  
  
• A Two pack of 11"x16' Vacuum Seal Rolls at Target retails for $17.99.   If each bag is 6" (which is quite large as it would be a 6” x 11” bag) then each bag is approximately $0.28

Campari USA Brand Ambassador Ann Louise Marquis shows an example of takeout cocktails in the adjacent post.

Other Potential Options

• Drink Bags
• Crowlers (Can Growlers)
• Growlers
  
  

Uline has a variety of other Options
https://www.uline.com/BL_1949/Plastic-Juice-Bottles

Labels
Avery Labels have templates for Microsoft Word and Apple Pages.  They also have templates for Adobe: Illustrator, InDesign, and Acrobat.  Each of the following labels has templates available for download directly from the website.

​Round

Round

• Avery® Easy Peel® TrueBlock® Print-To-The-Edge Inkjet/Laser Labels, Round, 22830, 2 1/2" Diameter, Glossy White, Pack Of 90 
  • Available Directly at: https://www.avery.com/products/labels/22830
  • Or from: Office Max/Office Depot ($19.99): https://www.officedepot.com/a/products/186244/Avery-Easy-Peel-TrueBlock-Print-To/
    
    
    
• Avery® Print-To-The-Edge Water Resistant Labels, 22856, Round, 2 1/2", White, Pack Of 72 Item # 914322
  • From Avery: https://www.avery.com/products/labels/22856
  • From Office Max/Office Depot ($20.49): https://www.officedepot.com/a/products/914322/Avery-Print-To-The-Edge-Water/
    
    
    
• Avery® Print-To-The-Edge Easy Peel® Round Labels, 2", Matte White, Pack Of 300 Labels Item (22877)
  • From Avery ($13.91 + $3 flat rate shipping):
    https://www.avery.com/products/labels/22877 
  • From Office Depot ($19.99) https://www.officedepot.com/a/products/6762581/Avery-Print-To-The-Edge-Easy/

Oval

• Avery® Print-To-The-Edge Permanent Inkjet/Laser Labels, 22814, Oval, 
  1 1/2" x 2 1/2", White, Pack Of 90

• From Avery ($11.72 + $3 flat rate shipping)
  https://www.avery.com/products/labels/22814
• Office Depot ($20.59)
  https://www.officedepot.com/a/products/1216504/Avery-Print-To-The-Edge-Permanent/
  
  
  

• Avery® Easy Peel® Print-To-The-Edge Permanent Inkjet/Laser Oval Labels, 22829, 
  2" x 3 1/3", White, Pack Of 80
• From Avery(16.26 + $3 flat rate shipping)
  https://www.avery.com/products/labels/22829
• From Office Depot ($20.59)
  https://www.officedepot.com/a/products/186172/Avery-Easy-Peel-Print-To-The/

• Avery® Easy Peel® Print-To-The-Edge Permanent Inkjet/Laser Oval Labels, 22804, 1 1/2" x 2 1/2", Glossy White, Pack Of 180
  • From Avery ($13.91 + $3 flat rate shipping)
    https://www.avery.com/products/labels/22804
  • From Office Depot ($20.59)
    https://www.officedepot.com/a/products/721482/Avery-Easy-Peel-Print-To-The/
  • Avery® Easy Peel® Print-To-The-Edge Permanent Inkjet/Laser Oval Labels, 22820, 2" x 3 1/3", Glossy White, Pack Of 80
    • From Avery ($13.91)
      https://www.avery.com/products/labels/22820
    • From Office Depot ($20.59)
      https://www.officedepot.com/a/products/186154/Avery-Easy-Peel-Print-To-The/

Rectangle

• Avery® Removable Durable Rectangle Labels, 22827, 
  3 1/2" x 4 3/4", White, Pack Of 32 

• From Avery ($17.45 + $3 flat rate shipping)
  https://www.avery.com/products/labels/22827
• From Office Depot ($20.59)
  https://www.officedepot.com/a/products/322846/Avery-Removable-Durable-Rectangle-Labels-22827/​

​Square

• Avery® Easy Peel® TrueBlock® Print-To-The-Edge Inkjet/Laser Labels, Square, 22806, 2" x 2", Matte White, Pack Of 300

• From Avery ($14.84 + $3 Flat Rate Shipping):
  https://www.avery.com/products/labels/22806
• From Office Depot ($20.59)
  https://www.officedepot.com/a/products/720393/Avery-Easy-Peel-TrueBlock-Print-To/

• Avery® Print-To-The-Edge Permanent Scallop Labels, AVE08218, 
  2 1/2" Diameter, Textured White, Pack Of 90 
  • From Avery: ($16.48 + $3 Flat Rate Shipping)
    https://www.avery.com/products/labels/8218
  • From Office Depot ($20.59)
    https://www.officedepot.com/a/products/247481/Avery-Print-To-The-Edge-Permanent/

Scallop

• Avery® Print-To-The-Edge Permanent Scallop Labels, AVE08218,
  2 1/2" Diameter, Textured White, Pack Of 90 
  • From Avery: ($16.48 + $3 Flat Rate Shipping)
    https://www.avery.com/products/labels/8218
  • From Office Depot ($20.59)https://www.officedepot.com/a/products/247481/Avery-Print-To-The-Edge-Permanent/

Wraparound

Wraparound

• Avery® Permanent Durable Wraparound Labels, 
  22845, 9 3/4" x 1 1/4", White, Pack Of 40
  • From Avery ($13.91 + $3 Flat Rate Shipping)
    https://www.avery.com/products/labels/22845
    
    
    
  • From Office Depot ($20.59)
    https://www.officedepot.com/a/products/392366/Avery-Permanent-Durable-Wraparound-Labels-22845/

Ice

High Quality Cocktail Ice can be purchased from the following 

• On the Rocks Hawaii: https://www.ontherockhawaii.com/
  • With an On The Rock Luxury Ice Club Subscription all your home -bar essentials will be complete! And for joining right now, a cash donation will be made in your name to your favorite bar/restaurant/hospitality professional! Check out the link in our bio to learn more.
    
    
    
• Ice Cubed Hawaii: https://icecubedhawaii.com/
  
  
  

Garnish

• If using a vacuum bag, garnishes can be encapsulated in a separate compartment in the vacuum bag.  This can be found at Jigger and Pony in Singapore: https://www.jiggerandpony.com/
• Similarly they could be placed in a ziplock bag.

• Pick-up can happen at the guest’s convenience, but there should be a recommended time window for optimal flavor.  A guest can receive a text when their order is ready.  
• Alternatively, a guest can “check-in” via phone then wait in their car until the cocktail is finished.  The guest can then be called back, or have the cocktail brought out to them. If this feels familiar, this is basically the McDonald’s App ordering system, but without the fancy GPS enabled app.

Examples of Programs

• Lyenda, Brooklyn, NY
  https://leyendabk.com/
  Online Purchase: https://leyendaclovercocktail.square.site/
  • Notes: 
    • Hawaii Girl Julie Reiner’s program which was nominated for  a 2019 Jame Beard Award for Outstanding Bar Program.  
    • The bar is only doing takeout on Tuesdays and Fridays from 2:00 - 5:00pm with all orders placed Friday - Monday will be available for Tuesday pick up and all orders placed Tuesday - Thursday will be available for Friday pick up.  

Serving Sizes: 8oz “double size” for $25 or 8 servings (32 oz) for $80.  The Old Fashion with a base of Knob Creek Rye is “3 servings 8oz” for $30 and “12 servings (32 oz) for $96.