As it turns out, pouring a drink comes with a hefty price tag.

“Don’t ever lose your sense of humor.” Dave Faries here, borrowing a line from the 1986 rom com About Last Night because it pretty much sums up my approach to almost anything.

When I spoke at my dad’s funeral, I couldn’t help retelling one of his favorite jokes—which I won’t share here. He loved both groaners and dragging them out for as long as he could. The punchline of this particular masterpiece is “Sure thing, Mr. Buquerque.” There was also a baseball-related tale that ended with “It was the beer that made Mel Famey walk us” (think of a certain brewery’s slogan and the rest will fall into place).

With that in mind, I’ve been known to throw a few out-of-whack questions into an interview. One I often ask of restaurateurs is “Do you have to be crazy to own a restaurant?” After a little chuckle, the response is generally in the affirmative—even from those who have been quite successful.

Consider for a moment the challenges that have confronted those in the industry, just in the last few years: pandemic-related shutdowns, supply chain hiccups, the skyrocketing price of ingredients, atmospheric rivers that not only kept people away, but also knocked out power for many. Chef Fabian Di Paolo arrived from Florida to take over the kitchen at Carmel’s Shearwater Tavern just in time for a week-long blackout. One of his first duties was to toss over $7,000 worth of spoiled meat and produce.

During a casual conversation with Bill Lee before his latest venture—Kona Steak & Seafood in Monterey’s Del Monte Shopping Center—opened, the restaurant veteran mentioned his struggle to obtain a full liquor license, one that would allow the sale of spirits in addition to beer and wine. In the past, he told me, he had most often paid between $40,000 and $60,000. This time, the necessary document cost a whopping $140,000. Not long after that transaction, April Montgomery shelled out $160,000 to cover a license for Links Club in Carmel.

Like many people, I assumed that one applied for a license and, if they met the requirements, was granted one by the state. But this particular situation—license prices being subject to the whim of supply and demand—only happens in states that limit the availability of licenses according to a formula (say, one new license for every 2,000 in added population), and California is one of them.

Currently, the market rate for full restaurant liquor licenses in Monterey County is the highest it has ever been, at least according to the people in the industry. It became the subject of this week’s cover story.

Restaurant owners develop thick skins from the whims they must face. Montgomery calls the situation “just another cost of doing business.” Both her and Lee were all smiles as they greeted guests, as usual. 

Don’t ever lose your sense of humor is a universal theme, or should be. And if you’re still puzzled, the long road to a lame punchline starts with a dying old west pioneer asking his comrades to name a town after him.

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The skyrocketing cost of a liquor license. Plus, your Sunday Paper.