Alcohol potentially a ‘saving grace’ for Ontario convenience stores as sales begin

Terry Yaldo never thought this day would come.

The owner of Midway Convenience in Windsor, Ont., says alcohol sales in corner stores – which officially began Thursday across the province – will be a “saving grace” for many small business owners.

“It’s going to save a lot of stores from potential closure. This will give us the boost of foot traffic that we need to survive,” said Yaldo, who also serves as chair of the Ontario Convenience Stores Association.

“We’re projecting anywhere from 30 to 40 per cent increase in overall sales and foot traffic. That can be the saving grace for a lot of small businesses.”

The move to let Ontario convenience stores sell beer, wine and ready-to-drink products was supercharged earlier this year.

In May, the Ford government paid The Beer Store $225 million to sign a new agreement on alcohol sales that would reduce its grip on the market, and allow as many as 8,500 new locations to begin selling booze.

The deal prompted a phased expansion, with already licensed grocery stores allowed to sell more products, followed by new licenses for convenience stores. The expansion will wrap up in October when new grocery stores get licenses to sell alcohol.

As of late August, more than 4,100 convenience stores had signed up to sell alcohol. Until recently, alcohol could only be purchased at the LCBO, Beer Store and Wine Rack, and at select grocery stores.

The expansion plan was first conceived in the run-up to the 2018 election and solidified last winter, with a promise to deliver the deal by 2026.

It came to fruition years after it was announced but earlier than expected in July, as the offerings at grocery stores were expanded to include ready-to-drink beverages and large beer pack sizes.

The decision to move the plan forward, as Global News has previously reported, went against expert advice from road safety and addiction groups.

Allowing thousands of convenience stores to sell alcohol has prompted many questions.

Opposition parties have labelled the move a “billion-dollar booze boondoggle” and questioned why hundreds of millions of dollars were spent on the policy.

The Ontario Public Service Employees Union, which represents LCBO workers, has said it fears what wider access to alcohol could mean, particularly with the potential for fewer ID checks at convenience stores where staff may be busier than the provincial liquor stores.

JP Hornick, OPSEU president, warned that the expansion of alcohol could increase exposure for children.

“If they wanted to protect people, they should think about how they’re protecting kids who are going to have increased access to alcohol in convenience stores and gas stations,” Hornick told Global News in August.

While the government bans cannabis stores within 150 metres of a school, no such rules have been applied to the alcohol rollout.

Anne Leonard, president of Arrive Alive, cautioned that increasing the number of private alcohol retailers could put store owners in a difficult position.

“We like to see beer, wine and spirits being sold in government stores because there’s no incentive to sell to minors, to sell to intoxicated,” she said in August.

“The clerk at the Beer Store, the LCBO makes the same amount of money whether they turned down a sale or not. Whereas, when it’s sold privately, when you turn down a sale, you’ve just turned down a little bit of profit.”

Oweis Miand, a convenience store owner in Peel Region, told Global News his operation would sell alcohol during the hours it is allowed — 7 a.m. to 11 p.m. — but wouldn’t serve anyone the LCBO would turn down.

“If they are making me money, I will be saying yes, obviously see what kind of state they are in depending if they are drunk or cannot talk or are wobbling, I won’t be serving them,” he said.

“And if they’re a minor, obviously won’t be serving them.”

On Tuesday, Premier Ford urged convenience stores to follow the rules but said they were ideal locations for an expanded rollout.

“They’re well-equipped. They’ve dealt with everything from tobacco to lottery tickets, now beer and wine,” he said at a press conference.

“They’re going to be very responsible.”

Many convenience store owners are excited about the rollout.

Anne Kothawala, president and CEO of the Convenience Industry Council of Canada, said in a statement the era of “antiquated, prohibition-era rules” in Ontario is over.

“Allowing beer, wine, and coolers to be sold in our stores will create new revenue streams for our local businesses and meet customer demands in an increasingly competitive marketplace,” Kothawala said.

“It will also give thousands of Ontario retailers and producers opportunities to secure and grow their businesses.”

Yaldo is asking Ontarians to be patient with them as they adjust to this new reality.

“I just hope many Ontarians are patient with this rollout. A lot of these independent stores are excited, and we hope people will take the time to go and visit their independent convenience store and see some of the positive changes,” he said.

“Especially on holidays where a lot of LCBO or Beer Stores are closed, our stores are open 365 days of the year. We’re willing and ready to serve our consumers and have a great experience for everybody.”