“Happy hours” can soon return to Indiana bars after a 39-year ban.
Starting Monday, Indiana bars will be able to sell alcoholic beverages at a reduced cost for a limited time. Currently, bars, restaurants or other retailers can offer reduced-price beverages only if the promotion spans a full day.
The change was authorized by House Enrolled Act 1086, which allows retailers to reduce the prices of alcoholic beverages for a limited time, but only between the hours of 9 p.m. and 3 a.m. Additionally, the bill states retailers may not reduce prices on alcoholic beverages for over four hours in a day or 15 hours in a week.
Retailers can still offer all-day promotions, with the restrictions only applying when happy hour promotions cover part of a business day. For example, if a bar is open for 10 hours a day and offers reduced drink prices for the entire 10 hours, it is legal under the bill, but if the bar offers reduced prices for five hours, that would violate the 4-hour limit of the bill.
The law also expands how retailers can distribute and sell alcoholic beverages, legalizing carry-out options for alcoholic beverages. Patrons will be able to purchase carry-out alcoholic beverages as long as the drink is sealed within a qualified container by the retailer. A qualified container must have “CONTAINS ALCOHOLIC BEVERAGES” stamped, printed or labeled on it. The container must also be placed in a bag that has the label.
The law does not limit what kinds of alcohol can be sold via carry-out, including mixed drinks.
The new law could give a boost to local bars across the state and Johnson County. At a ceremonial signing on March 14 at the historic Whistle Stop Inn in Indianapolis, Gov. Eric Holcomb said the bill is “about the consumer and the small business person who is grinding it out every single day,” the Indiana Capital Chronicle reported.
The Daily Journal spoke to several local bar owners and managers about the new law to mixed results. They were looking forward to offering limited-time deals, but one questions the extra regulations that come with the law.
Bourbon fans and cocktail aficionados can expect to soon see deals at The Mint Cocktail Lounge, at 40 N. Water St., Franklin. Operator Brian Mayo said there will be discounted alcohol prices at times that are typically slower. The discounts may incentivize people to come in earlier rather than at busier, evening times the lounge is open.
In addition to the planned discounts on cocktails and draft beers, the cocktail lounge is also considering opening earlier for lunch to accommodate people looking for a deal. The Mint is also offering a revamped food menu, including items such as smashburgers and wings, Mayo said.
He sees the lifting of the ban as a way for local businesses to bring in more money in slow times while also giving consumers a break.
“It’s a better opportunity for people to save some money,” Mayo said. “The economy is rough right now.”
SIP Cocktails on Main, located at 250 W. Main St., has been open for about six months in Old Town Greenwood. Co-owner and Operator Dan Slater questions why the change was made now and whether the bill will help bars across the state.
“I thought, ‘Why are they bringing this back?’ But I also found out, at the same time, you are now obligated to have a pretty large liquor liability insurance policy, and that affects everyone. So I would have some questions about that too … That’s a pretty big expense.”
While SIP may incorporate discounted drinks during certain times of day, Slater said the bill could end up doing more harm than good for business owners. However, he is looking forward to seeing what the benefits of the bill will look like once it takes effect.
“I think it’s gonna be more hurtful than helpful though, just because of the expense of being allowed to do it,” Slater said.
The rules surrounding carry-out drinks also raise more questions than they answer, Slater said. Because of these rules, SIP Cocktails on Main will not be offering carry-out alcoholic beverages, he said.
“Have you have you seen what you have to put it in? It’s laughable,” Slater said. “I believe you have to take a bag and then put a container in it with no straw hole, everything like that. And then the bag has to be sealed and then you can take that with you.”
Mark Clark, the co-owner and operator of Whit’s Inn, said he hopes to see benefits from the bill.
Clark, who has operated the Whiteland establishment with his wife Deena Nystrom for 23 years this Saturday, said the law comes at a difficult time for business owners and could help relieve concerns about price increases due to inflation that are popping up nationwide. For Whit’s Inn, located at 1020 U.S. 31 South, the bill is also taking effect during a time of high competition. With Independence Day approaching and summer festivals in full swing, local businesses compete with other venues and events, he said.
The law could also help bar owners recover from the decline in alcohol sales, which he says still aren’t up to levels seen before the COVID-19 pandemic.
“When I turned 21, I went bar-hopping with friends,” Clark said. “Those who turned 21 during the pandemic did not have that experience.”
Clark is considering having discounted drinks during the week for a couple of hours per day to align with the bill’s restrictions on daily and weekly happy hours. But, overall, he said it still comes down to evaluating which specials will be implemented following July 1.
