Changes to Virginia’s Food-To-Beverage Ratio Set To Take Effect July 1, 2026
Governor Spanberger has signed HB 975 (Bennett-Parker) into law, revising Virginia’s long-debated food-to-beverage ratio requirements for restaurants holding mixed beverage licenses. The law creates tiered ratio requirements based on monthly food sales, eases restrictions for certain smaller venues and directs ABC to study the impact of the changes before reporting back to the General Assembly in 2027.
Governor Spanberger has signed into law legislation that will change Virginia’s existing food-to-beverage ratio. While the General Assembly has grappled with this issue for many years, this is the first time that legislation has passed both the House and Senate and been approved by the Governor.
Current law requires that restaurants with a mixed beverage license make 45% of their sales through food, while only 55% of their sales may come from mixed beverages, defined as “drink[s] composed in whole or in part of spirits.” Beer and wine do not count towards this ratio.
HB 975 (Bennett-Parker) makes several changes to this ratio requirement:
- For such licensees with monthly food sales averaging at least $48,000, the food-to-beverage ratio shall not apply.
- For such licensees with monthly food sales averaging at least $25,000 but less than $48,000, the food-to-beverage ratio shall meet or exceed 30%.
- For such licensees with monthly food sales averaging at least $4,000, but less than $25,000, the food-to-beverage ratio shall meet or exceed 45%, except that for any licensee with monthly food sales averaging less than $25,000 with a seating capacity of less than 30 seats and an occupancy permit for less than 60 people total, the food-to-beverage ratio shall meet or exceed 30%.
In addition to these changes to the ratio, HB 975 (Bennett-Parker) also stipulates that any restaurant with a mixed beverage license must have as many seats at tables as they have seats at counters.
The General Assembly has signaled that this bill will likely not end the continued analysis and discussion over Virginia’s ratio laws. HB 975 (Bennett-Parker) requires that ABC collect data regarding the compliance of mixed beverage licensees with these news laws as well as the impact the food-to-beverage ratio may have on the gross amount of food consumed on licensees’ premises. ABC is directed to report back to the General Assembly with this information by November 1, 2027.
Having been signed by Governor Spanberger, HB 975 (Bennett-Parker) is set to go into effect in Virginia July 1, 2026. Upon enactment, the Virginia Alcoholic Beverage Control Authority (ABC) will begin the process of updating their relevant regulations.
Key Takeaways
New Tiered Ratio Rules – HB 975 replaces Virginia’s one-size-fits-all food-to-beverage ratio with a tiered structure tied to monthly food sales.
Reduced Restrictions for Some Restaurants – Establishments with at least $48,000 in monthly food sales will no longer be subject to the ratio requirement, while certain smaller venues may qualify for a reduced 30% threshold.
Additional Seating Requirement – Restaurants with mixed beverage licenses must now maintain equal seating at tables and counters.
Further Review Expected – Virginia ABC has been directed to collect compliance and consumption data and report findings to the General Assembly by November 1, 2027.
Effective July 2026 – The new law takes effect July 1, 2026, and ABC is expected to begin updating its regulations to reflect the changes.
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