September 23, 2025

 

Virginia Alcoholic Beverage Control Authority

Attn: Board Secretary

7450 Freight Way

Mechanicsville, VA 23116

 

Dear Members of the Board,

 

Pursuant to 3VAC5-11-60, I write on behalf of the Virginia Restaurant Lodging and Travel Association (VRLTA) to petition the Board of the Alcoholic Beverage Control Authority to consider a regulatory change.

 

VRLTA, which represents thousands of restaurants, hotels, and hospitality businesses across the Commonwealth, respectfully requests that the Board consider amending 3VAC5-50-160 to allow restaurants and other on-premises licensees to offer reduced-price alcoholic beverages until 12:00 a.m., instead of the current 9:00 p.m. cutoff. This modest but important change would modernize outdated regulations, strengthen small businesses, and maintain the Commonwealth’s strong public-safety protections.

 

Virginia has made progress in updating its happy-hour rules in recent years—for example, permitting broader advertising flexibility. However, the fixed 9:00 p.m. cutoff remains a relic of an earlier era. Consumer behavior, dining habits, and late-night transportation options have all evolved significantly. Today, guests dine later, and late-evening business has become essential for many operators struggling with inflation, workforce shortages, and post-pandemic recovery.

 

The original intent of the 9:00 p.m. restriction was to protect public safety. That remains our shared priority. However, the data show that Virginia has continued to make progress in combating impaired driving. Traffic fatalities decreased nearly 10% from 2022 to 2023, from 1,005 down to 907. DUI convictions dropped as well, by roughly 11% between 2021 and 2023 from 15,988 to 14,246.

 

While alcohol-related crash numbers fluctuate year to year, overall enforcement, training, and deterrence are working. Combined with widespread rideshare services and the industry’s commitment to responsible service, a midnight extension can be implemented safely and effectively.

 

The hospitality industry is one of Virginia’s largest private-sector employers and economic drivers. Virginia hosts ~16,900 eating & drinking establishments, employing over 304,000 people. Our industry, many of whom are your licensees, generate $34.6 billion in annual restaurant & foodservice sales, generating $5.7 billion in state and local taxes. Every dollar spent in Virginia restaurants contributes $1.71 to the state economy. Extending happy-hour flexibility until midnight would provide a vital boost to operators, helping businesses keep doors open during slower hours, support payrolls, and strengthen the late-night economy in Virginia’s communities.

 

Guardrails for safety remain in place. VRLTA supports keeping all current prohibitions intact, including bans on unlimited drinks, below-cost sales, and drinking games. We also support clear communication of happy-hour hours, ongoing ID checks, and strong enforcement of responsible-service training.

 

We respectfully urge the Board to initiate rulemaking to amend 3VAC5-50-160(E) by replacing "9 p.m.” with "12 a.m.” for on-premises licensees. This update would provide Virginia’s restaurants and hospitality businesses with much-needed flexibility while continuing to protect the public. Thank you for your consideration and for your continued work balancing safety and economic vitality. VRLTA and our members stand ready to provide testimony, industry data, or suggested draft language as you deliberate.

 

Respectfully,

Eric Terry

President

Virginia Restaurant Lodging and Travel Association