Retail
Liquor laws, lacking nightlife hurt Silver Spring bars
Last weekend, Piratz Tavern, a pirate-themed bar in downtown Silver Spring, received a makeover from the TV show Bar Rescue and re-opened as a more conventional hangout dubbed Corporate Bar & Grill. While host Jon Taffer and many customers say it failed because of bad food and poor service, there are other factors that sunk this ship.
Photo by davethegame on Flickr.
For starters, Montgomery County makes it hard to open a bar. Every place that serves alcohol in the county has to buy it from the Department of Liquor Control, whose markups and bureaucratic delays result in higher prices for booze than in surrounding areas.
The county also requires that food make up half of all sales at establishments selling alcohol. And until a few years ago, there was a limit on how many liquor licenses a single owner could hold.
These restrictions make it difficult and expensive to run a bar, which encourages owners to locate in areas where there's already a bar scene with a guaranteed customer base. Hence, there are lots of bars in Bethesda and relatively few elsewhere. Yelp counts 25 bars in downtown Bethesda and just 9 bars in downtown Silver Spring, including Babe's Sports Bar, which closed earlier this month. And both pale in comparison to Clarendon, which with 44 bars has the highest number of any neighborhood outside the District.
This hurts bars in other parts of Montgomery County, who lose customers just by not being where all of the other bars are. It's especially hard for bars like Piratz Tavern. Though I've enjoyed myself thoroughly each time I went there, I can safely assume that not everyone wants to go to a bar and drink grog and sing sea shanties.
Piratz was a niche business, like a Korean restaurant or a record store, reliant on a small portion of the general public for their customer base. Niche businesses need a lot of people coming to the area to ensure that enough of them want what you're selling. That requires a high population density, like in the Akibahara "geek ghetto" in Tokyo, or a concentration of businesses serving a niche population, like Annandale, whose 900 businesses catering to Koreans make it a destination for Greater Washington's Korean community.
When you have a lot of people coming to your area, niche businesses can thrive. But in Silver Spring, where the bar scene and thus the pool of potential customers is very small, anything too unusual will get squeezed out.
Bars along H Street NE. Photo by the author.
Successful nightlife districts offer visitors lots of choices for dinner, drinks, and entertainment options. That's why Joe Englert purposely opened several unique venues at once along H Street NE in the District. He provided lots of reasons for lots of different kinds of people to come there, drumming up a substantial bar scene in a short period of time and helping to revitalize the neighborhood, which in turn produced more bars and restaurants.
Silver Spring could do the same if Montgomery County made it easier to open a bar here. Making the area a bigger nightlife destination could draw business to existing bars while encouraging new bars to open. It could also provide enough customers for niche bars like Piratz Tavern. Not only that, but it could also make the area safer, getting people on the streets at night when the sidewalks are normally empty.
Piratz Tavern didn't just fail because it was a pirate-themed bar. It failed because there aren't enough bars, pirate-themed or otherwise, to create a critical mass of bargoers in Silver Spring. Unless things change, the new Corporate Bar & Grill will struggle as well.
 | A planner and architect by training, Dan Reed is interested in suburban retrofits. Dan works for the Friends of White Flint, writes his own blog, Just Up the Pike, and serves as the Land Use Chair for the Action Committee for Transit. Dan lives in Silver Spring.    |
Comments
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He links people with concepts, financing, vendors, and spaces. He has a staff including people devoted to just dealing with the tax and revenue agency and the building regulation agency.
He leverages these relationships to simplify the opening and management of establishments. cf. http://www.claremont.org/projects/pageid.2020/default.asp
Individual proprietors have a much harder time. And that's definitely true in DC, where it may be comparatively easier for nightlife establishments to open. (But maybe more expensive.) Even if the BIDs don't think so. See http://www.dcbidcouncil.org/home/2012/1/23/nighttime-economy-summit-a-big-success.html which I have been meaning to write about.
If places fail, Englert has other people with other concepts (a portfolio so to speak) and can tinker. He probably won't lose money because he still controls the properties. Oh, and he can open places cheaper than other people because he has access to vendor financing and incentives because of his long and successful track record.
In MoCo, because of the demographics, you don't have people like that so much. The people who have perfected this kind of system focus on restaurants, people like Jeff Black. And there is that company in Bethesda, that owns various concepts (not just in MoCo) like Tortilla Coast and Cafe Deluxe. I don't know of many others, but I don't track MoCo as much as I do DC.
I have been meaning to write about this as well, in the context of how most firms either focus on the city or particular suburbs, but some straddle, e.g., the group that owns Matchbox has a place on Rockville Pike and is opening in the Mosaic District. The Neighborhood Restaurant Group mostly is in VA but has Church Key. The EatWellDC group I think is only in DC (Grillfish, Logan Tavern, The Heights). Jeff Black has ventured into DC. Clydes is active in the city and the suburbs. The Capital Restaurant Group (J. Pauls etc.) is mostly in DC with some suburban outposts. The Great American Restaurants people are only in VA. Etc.
Although I guess there are bars and such up Gaithersburg way (Rio Center..., I've never been there). Although given the demographic issues, I guess the places have problems staying open (e.g., a Buffalo Billiards in Gaithersburg)
by Richard Layman on Feb 27, 2012 3:54 pm • link • report
by SilverSpringer on Feb 27, 2012 4:12 pm • link • report
by H Street Landlord on Feb 27, 2012 4:21 pm • link • report
by Canaan on Feb 27, 2012 4:28 pm • link • report
by Gray on Feb 27, 2012 4:30 pm • link • report
Second, the argument completely ignores the fact that other bars have managed to navigate MoCo liquor laws very successfully. Why is Sidebar thriving? They've got a craft cocktail program that is more ambitious than anything you'll find in Bethesda. And I'd say it's comparable to a many places in DC, yet manages to do it at a lower price ($9-12 per drink, rather than $10-15). And what about the Quarry House? Again, better "bar-lover's" bar than anything you'll find in Bethesda, and it has a beer, booze, and food menu that competes with comparable places in DC and VA.
by Jason on Feb 27, 2012 4:37 pm • link • report
So I guess the author's point is that all that is needed for a transformation in the Silver Spring bar scene is a slight decrease in liquor license fees and a reduction in the requirement for food sales from 50% to 45% of total sales?
by Gray on Feb 27, 2012 4:38 pm • link • report
There's potential, but until Silver Spring incorporates and gets out from under MoCo Council, it's not a priority. See Wheaton.
by Redline SOS on Feb 27, 2012 4:41 pm • link • report
by Canaan on Feb 27, 2012 4:43 pm • link • report
Also, I nominate "Corporate Bar & Grill" as perhaps the least enticing name ever. Even an ironic take on it (one Prince of Petworth comment suggested the menu as a half-hour PowerPoint) sounds positively dreary. Drinks after work are supposed to be an escape from humdrum corporate drudgery, not a continuation of it!
by Payton on Feb 27, 2012 5:20 pm • link • report
by Richard Layman on Feb 27, 2012 5:31 pm • link • report
Are you kidding me? No one could come up with more of a 180 degree turn than that one! Also, I have to say that's a pretty terrible choice of a name unless you're located in Rosslyn next to the Corporate Executive Board and are aiming at the suit-and-tie happy hour crowd.
Wait, doesn't VA require that all bars serve food, and that food sales make up a significant proportion of revenue? If these requirements are so onerous, why do you think Clarendon manages to have so many bars?
I also believe that VA, like MD, channels all liquor sales through state ABC stores. So, while I like the article's application of economic and competitive theory (true: niche businesses need a critical mass of foot traffic and many businesses/industries locate in clusters), I don't know if liquor laws are the primary driver of why bars are successful in Clarendon and Bethesda but not SS. My guess is it has to do with the lower level of disposable income in Clarendon/Bethesda vs. SS.
the group that owns Matchbox has a place on Rockville Pike and is opening in the Mosaic District.
Seriously? Woo f-in' hoo! The Mosaic District is going to rock suburban style with Matchbox, an Angelica Theater (LA's version of the Landmark/Bethesda Row chain of indie theaters) and of course, the suburban favorite...Target. Not to mention the amazing Four Sisters restaurant that's already there.
by Falls Church on Feb 27, 2012 5:31 pm • link • report
What impact would liquor stores (for the retail sale of bottled spirits) have on liquor licenses (for the sale of liquor drinks to be consumed on the premises)? You're conflating two very different things there.
Also, remember that the regulatory market is very complex. The difference between 45% food revenue and 50% food revenue could be huge. Likewise, how easy is it to get a license of any kind? Is there a cap on liquor licenses? How much does one cost to obtain? Is it easier to get a beer and wine license only? Do they even offer beer and wine licenses? What about hours of operation? Hours of sale? Hours that the kitchen must be open? What about approvals required?
There are tons of regulatory issues involved. I would hesitate before declaring the regulatory environments in Clarendon and SS to be equal.
by Alex B. on Feb 27, 2012 5:40 pm • link • report
The county's restrictions on how you obtain liquor licenses, and how many licenses you can obtain (which has since been loosened) encourages potential bar/restaurant owners to locate in "safe" areas (i.e., areas with existing nightlife activity.) In a way, Bethesda benefits from the restrictions because bar owners see other successful bars there and follow them.
As for Sidebar/Jackie's: I've talked to Jackie and she says one of the biggest problems she has is the lack of foot traffic. All the bars in downtown Silver Spring are spread out, meaning it's hard for people to just stumble in. Having a concentration of bars, like in Bethesda or Clarendon, means that everyone does better.
@Everyone
I'm not saying that the county's liquor laws are the only reasons why bars in MoCo fail, but it is a big factor. I admit that Piratz Tavern had its problems, but its new iteration could still struggle due to some of the things I mentioned above.
by dan reed! on Feb 27, 2012 5:43 pm • link • report
by Gray on Feb 27, 2012 6:13 pm • link • report
See below quote:
Every place that serves alcohol in the county has to buy it from the Department of Liquor Control, whose markups and bureaucratic delays result in higher prices for booze than in surrounding areas.
This is also true in VA. That's part of the reason why Gov. McDonell wanted to privatize liquor distribution and sales in VA. That's all I was saying with regards to
@Falls Church
What impact would liquor stores (for the retail sale of bottled spirits) have on liquor licenses (for the sale of liquor drinks to be consumed on the premises)? You're conflating two very different things there.
by Falls Church on Feb 27, 2012 7:08 pm • link • report
A few thoughts: SS has staked its redevelopment on chain business which has had mixed results. One result is that it doesn't have much that's unique to SS and the truly local businesses a re a little away from where people normally go. Second, a lot of the people in SS one would expect to enjoy nightlife live away from the retail center of SS, often in highrises or other large scale developments that are meant to be self-contained. That kind of arrangement doesn't encourage people to do things like go to the gym that easily get them strolling to other places. Bethesda has a lot of chain places, but also lots of one-offs and the housing is quite varied and close to the commercial district. It also has a safer rep--H Street, U Street, and Adams-Morgan all attracted nightlife despite crime, but that's probably easier in the city than in the 'burbs. Clarendon has many qualities similar to Bethesda, although those end when you get close to Ballston or Rosslyn, which seem more SS-like.
SS needs to figure out how to do something that's about SS. It also needs to figure out how to get more housing that isn't on the DC side of the Metro or across Colesville Road from most of the development. the area with the Hilton and Hampton Inn would have made more sense as housing, and the hotels would have been better positioned closer to the Metro. That's the sort of decision MoCo needs to avoid making in the future.
by Rich on Feb 27, 2012 9:15 pm • link • report
by kk on Feb 27, 2012 11:15 pm • link • report
Seriously though, just a dumb theme for a bar especially in downtown Silver Spring. Maybe on a dock in Barbados I could go for it but outside of that it's just too silly to be an adult hangout. It might seem cool to an 8 year old but they are to young to come in and buy some grog anyway.
Actually there are plenty of more subtle marine and even somewhat pirate themed bars in Maryland that pull it off, however they are generally in places like Annapolis or Baltimore where they have actual HARBORS full of boats. Even there they aren't corny enough to put the word pirates with a freaking Z on the end in the name of their establishments. Sounds more like it belongs in a theme park not in the middle of a real city.
The service was probably so crappy because all the employees were ashamed to even be working at a such a ridiculous place.
Then they just went and did a complete 180 to the most stiff and boring name/theme you could possibly come up with. It'd be funny if it wasn't so sad.
I do realize this was just a segway to talk about the MoCo liqour laws though, which I agree are stupid just on general principal.
by Doug on Feb 28, 2012 12:55 am • link • report
When Jackie bought it a decade or so ago, there was much fear and everyone said that too. Luckily she didn't change too much except for getting rid of that stinking carpet. :)
by Jamie on Feb 28, 2012 8:15 am • link • report
by Arl Fan on Feb 28, 2012 8:31 am • link • report
Why does one need to have liquor to have nightlife? I have been to many places that are almost dry and have great nightlife.
Such as?
by Alex B. on Feb 28, 2012 8:34 am • link • report
Why does one need to have liquor to have nightlife? I have been to many places that are almost dry and have great nightlife.
You mean besides the preponderance of establishments that serve alcohol by barrel just also happen to be the same places where people gather in large numbers after 10 PM?
by Fitz on Feb 28, 2012 10:04 am • link • report
That said, there are some very good reasons for that regulation that should also get some airing. Primarily, that bars don't make good neighbors. Late night establishments of any kind generally attract crime and late night noise. So while more bars might increase quality of life for some residents, it has the exact opposite effect for other residents. Hence, the careful control of bars via a licensing system that gives local government a lot of power to rein in bars if they have too many negative effects on the surrounding neighborhood.
by Falls Church on Feb 28, 2012 11:12 am • link • report
Of course, as other commenters have said, what about downtown Bethesda? It's subject to the same laws. Silver Spring's commercial districts seem to be more segmented than Bethesda's. You have a some things along Colesville Rd, the chain restaurants/shopping one block over along Ellsworth, and then Georgia Ave. There doesn't seem to be a good flow or connection between these three areas, so it's unlikely someone going to a show at the Fillmore or having dinner at Ray's would trek to Jackie's, unless they really, really wanted to. Places like Adams Morgan and H Street are successful because people feel like they can leave one bar, wander down the street, and easily find another bar. That isn't the case in downtown Silver Spring.
Ideally I'd like to see Colesville Rd between Georgia Ave and Fenton become more of a nightlife destination. The bones are there - the Fillmore, AFI Silver, Ray's, Kao Thai - and I think less restrictive liquor laws would go a long way to encourage new restaurants and bars to open along that stretch. I've always thought that small parking lot on the corner of Colesville and Georgia outside Panera would make a great plaza, with outdoor seating for restaurants or bars. Also, the demolition of Shitty Place would help too, but that's another conversation...
by Rebecca on Feb 28, 2012 12:17 pm • link • report
MoCo's liquor laws are completely ridiculous. I'm from Michigan originally and you can buy hard liquor and beer/wine anywhere you might like. Grocery store, 7-11, even gas stations I think. When I moved to VA and later MD I was shocked at the completely backwards way alcohol is handled here.
You can only buy alcohol that the county approves and if there's something I want _in my own country_ I can't have it delivered because of MD/MoCo, for instance, there is a great beer from Michigan called 'Dragons Milk' that I love. That's way too restrictive to me. If I want it, I should be able to get it. If the county doesn't want to sell it for some stupid reason, fine, I should be able to get it delivered. Then their little heads won't have to be bothered by it.
About the Bethesda bars, they really aren't very interesting. The variety of types of bars is low, in my opinion. Cesco Osteria just opened a few months ago and has a nice bar but Union Jack, Rock Bottom, and Blackfinn are pretty intensely uninteresting, and in Rock Bottom's case the beer isn't even very good. Where are the queer bars, leather/s+m bars, dance clubs of different stripes, English pub, Irish pub (I assume there's differences, yes we do have RiRa and Flannigans), German biergarten, etc?
by James on Feb 28, 2012 2:42 pm • link • report
by Mike on Feb 28, 2012 3:18 pm • link • report
by drbubbles on Mar 1, 2012 10:29 am • link • report
As a resident of Clarendon for the past 10 years, I can tell you that the increase in nightlife, while good for the neighborhood in general (real estate prices increase, etc...) it has also increased the amount of noise that I, as a resident, am experiencing weeknight evenings.
The biggest problem seems to be the drunk customers who come out of establishments and walk down the street after closing hours..usually they are loud, they are laughing or shouting (fights break out on occasion) and they are just overall rowdy.
What I think is missing in these higher density neighborhoods with expanding nightlife..is pedestrian POLICE, especially in the bar closing hours, to prevent loitering and unruly drunken behavior.
While the noise levels have increased, it's really just Thursday nights that bother me, as during the weekend, well, that's the weekend...
As for DTSS I was just there this past weekend (for the 1st time) to see a movie and have dinner. I'll never go back. It was overcrowded, with throngs of unruly folks, both drunk and sober mind you. Many with loud obnoxious children running around everywhere unsupervised and in the 5 hours we spent there we did not see 1 SINGLE POLICE OFFICER patrolling the area.
Disaster.
by LuvDusty on Mar 5, 2012 1:04 pm • link • report
I think the city needs to do a better job of encouraging restaurats/bars to coordinate closing times with nighttime venues and encourage foot traffic. SS is not a destination for me because I know I can go to Bethesda and walk anywhere for anything and its safe. I can take metro, shop, dine, catch a movie and go out for drinks, at multiple places if I choose, in one swoop.
You just cant do that in SS and until you can its not going to be a nighttime destination for a lot of people.
by Emily on Feb 4, 2013 11:06 am • link • report
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