Sitka Business Owners Challenge New Restaurant License Proposals Amid Staffing Crisis

The Sitka City and Borough Assembly meeting on August 12, 2025, focused on the contentious issue of new restaurant liquor licenses and the impact on local businesses. Business owners expressed strong concerns about the proposal to issue six new restaurant licenses, arguing that it could exacerbate existing challenges in staffing and housing.

One business owner highlighted the absurdity of counting tourists as residents, emphasizing that many local businesses struggle to operate seven days a week due to staffing shortages. The owner questioned the feasibility of opening new restaurants without sufficient employees or housing options for them. They pointed out that the current cap on liquor licenses is already reached, and the introduction of new licenses could undermine the investments made by existing businesses that rely on their licenses.

Another speaker, Patricia McPike, a local business owner and member of the Sitka Char, echoed these sentiments. She compared the situation to fishing regulations, stressing the need for limits to maintain quality in the local economy. McPike expressed surprise at the lack of public process surrounding the proposal, noting that the letter to the Alcohol and Marijuana Control Office (AMCO) was already prepared without adequate community input.

McPike also raised concerns about the potential impact on local students and visitors, questioning the assumption that restaurants cannot survive without a liquor license. She argued that this belief is misleading and that businesses could adapt their models to thrive without such licenses.

The meeting underscored the tension between supporting new business opportunities and protecting the interests of established local enterprises. As the assembly considers the proposal, the voices of local business owners highlight the need for a balanced approach that considers the long-term sustainability of Sitka's economy.