It’s last call at the bar for the Jerry’s Famous Deli in Woodland Hills. The 8,700-square-foot restaurant will shrink to about 7,000 square feet later this summer, as the restaurateur will partition off the bar and sell off its liquor license. Ami Saffron, vice president at Jerry’s, said the restaurant doesn’t need a full liquor permit because customers aren’t interested in drinking hard booze in a deli setting. “I don’t know if scotch and rocks works with lox and cream cheese,” he said. Landlord Plaza International will build a 1,700 square-foot wall to separate the restaurant and the bar, with the company planning to lease it to a new tenant. The construction work is expected to take four to six months. “We are going to fix up the restaurant with the least amount of disruption to our customers and operations,” Saffron said. Not only will the new configuration reduce the space Jerry’s rents, it will bring in some money. The company will sell its current liquor license, called a 47 license, although Saffron wouldn’t reveal the name of the broker that will conduct their sale. As previously reported by the Business Journal, the going rate for a full restaurant liquor license in L.A. County hovers around $70,000. Saffron said Jerry’s is working to obtain a type 41 liquor license, which only allows a restaurant to sell beer and wine. According to Jerry Prendergast, principal at restaurant consultancy Prendergast & Associates in Culver City, Jerry’s will be fine once it gets the 41 license. The cost is only about $1,000 and qualifying is easy. “You can pretty much get a beer and wine license by will,” Prendergast said. He added that selling a liquor license brings benefits beyond the cash infusion. It will lower the cost of liability insurance because less alcohol means less risk. Will selling off liquor licenses become a bigger trend? Chicago based restaurant analyst Technomic Inc. reported that adult beverage volume went down 1.3 percent in 2013 at establishments including restaurants. Jerry’s currently has four locations in the Los Angeles area, including the one in Woodland Hills at 21857 Ventura Blvd. The company has no intention of making changes at its other outlets. – Rosie Downey
