Ontario convenience stores join the beer biz

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Senthil Balakrishnan believes it’s the signature butter chicken and poutine dishes that make his takeout restaurant and convenience store just east of Tunney’s Pasture stand out.

But, if having a few cans of beer amid the cereal, household cleaners, air fresheners, crushed tomatoes and potato chips on the shelves helps draws more customers to the mom and pop shop, so much the better.

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“It’s just like cigarettes and the lottery,” said Balakrishnan, who with his wife, Sathya Ramar, runs the Red Rock Convenience and Café on Forward Avenue. “There’s not a lot of revenue in it. It’s pretty much just to help invite people in. With this being a new business, I’m looking for more people to come into my store.”

Balakrishnan said there were some gambles involved, but, when the sun came up Thursday, a new day dawned for Ontario’s beer, wine and ready-to-drink cocktail industry.

Aided by a heavy push from Premier Doug Ford, that business is no longer exclusive to The Beer Store, LCBO and major grocery store chains.

The Red Rock is one of 188 new locations in the capital region — from Carp to Orléans — that can now sell liquor. All told, 4,075 convenience stores in Ontario, many of them connected to gas stations, are licensed to serve.

Prices at convenience stores vary, but they are typically a few cents higher per unit than at The Beer Store or LCBO.

Unlike the LCBO, heavy spirits such as whisky, rum, vodka and gin can’t be sold at corner stores.

“When we took over last September, the business was barely there,” Balakrishnan said. “When we bought it, the main goal was to get more people in.”

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Anything helps for a place that proudly displays an “Our First Dollar” earned bill behind the counter, hoping to capitalize on the neighbourhood’s boom in condo and apartment construction.

Hence, putting beer on the shelves.

“If people come in for a can of beer, they might say, ‘Hey, there’s a good café, with a good menu,’” he said. “For me, again, it’s kind of like the same thing with people buying cigarettes.”

He acknowledged “mixed feelings” in the community about the change and that there was an additional responsibility that came with selling liquor. All store clerks must be trained in how to serve responsibly.

At the same time, he says, it’s no different than what has been happening at dépanneurs in Gatineau.

For generations, Ottawa residents have taken advantage of looser liquor laws in Quebec, popping across the Ottawa River to buy beer, which is typically cheaper than Ontario prices. As of 2019, it became legal for Ontario residents to buy limited amounts of booze across the provincial border.

“A lot of people in this area, they go across the bridge to get beer, right?” Balakrishnan said. “We’re just starting it. Whether this process is easy or not, I’m not sure, but the only thing I know is we’re not getting good (profit) margins from it.”

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While convenience stores in Ontario can now sell liquor as early as 7 a.m. — The Beer Store and LCBO typically open at 10 a.m. — Red Rock isn’t changing its 9 a.m. opening.

“I’m not going to sell beer at 7 a.m.,” he said. “That seems too unethical to me at this point.”

In the big picture, he said, there are risks.

“Some people say, if you start selling beer, you’re going to attract wrong kind of crowd. I don’t know what it means so far.”

At the Preston Food Market, a small neighbourhood grocery store on the intersection of Preston and Elm in the heart of Little Italy, owner Dhaval Patel is dipping into the suds market gradually. At this point, he’s only selling single cans of beer and bottles of wine.

“I don’t know what the customer response will be,” Patel said. “If customers want me to sell the six-packs or 12-packs, then I might order those, too.”

Patel thinks Ontario’s new laws are good for convenience stores. He agrees with Balakrishnan that it’s more about providing an additional convenience for customers than being a major revenue boost.

On Thursday, he was selling 473-millilitre cans of Keith’s for $3.70, and Stella for $3.99. The corresponding LCBO prices were $3.30 and $3.55.

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“If people come in to buy a beer, they might buy something else,” Patel said. “Right now, my plan is not to convert to an alcohol store. I don’t want to lose the customers that are coming in for groceries.”

At least one customer, however, was patiently waiting for Thursday to come.

Patel turned away a beer-seeker when the store opened at 6 a.m. The beer buyer returned for his ale an hour later, when the new Ontario law officially kicked in.

Patel has also increased security measures for his store, concerned by the possibility that, by having beer and wine on the premises, it could increase chances of a break-in.

kwarren@postmedia.com

X: Citizenkwarren

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