Bill to let caterers buy from wholesalers draws split testimony; liquor stores cite historic agreement

The House Committee on Small Business heard testimony April 3, 2025, on House Bill 5885, introduced by Representative Casey, which would allow holders of a class P catering liquor license to purchase alcoholic beverages from wholesalers rather than being required to buy from class A retail liquor stores.

Proponents — including caterers and hospitality trade representatives — told the committee the change is a matter of competitive fairness and operational practicality. TR McGrath, owner of McGrath Clamb Bakes and Catering, said caterers routinely place large case orders that are effectively pass-through deliveries from distributor trucks and that buying wholesale would simplify logistics and lower costs. Bill Walsh of the Rhode Island Hospitality Association said the proposal would "ensure fair competition within our hospitality industry," allowing caterers to negotiate volume discounts and service arrangements similar to restaurants and hotels.

Several caterers described service limitations they experience when required to purchase through retail outlets: limited availability of specific items, manual ordering burdens, delivery constraints and the difficulty of managing large event orders through retail stock. Karen of Blackstone Caters said the state has only a handful of active caterers and that allowing wholesale purchase would not eliminate retail liquor stores.

Liquor retailers opposed the bill. Nick Feede Jr., executive director of the Rhode Island Liquor Operators Collaborative, said the class P structure was created to address insurance and public-safety concerns and to preserve a negotiated commercial relationship with retailers. He told the committee that many retail stores extend credit terms, accept returns of unsold product and provide customer service and inventory support; those features, he said, would be lost if caterers bought wholesale.

Bob Goldberg, who said he helped negotiate the original class P arrangement about two decades ago, told the panel the retail–caterer arrangement was the product of a long negotiation and that independent stores depend on those sales; he characterized the earlier agreement as a quid pro quo that helped protect small retailers' business models.

Committee members asked about likely price differences, delivery minimums from wholesalers, and whether restaurants already have access to wholesale purchase channels. Witnesses said restaurants often buy wholesale; caterers argued they should have the same option. Retail representatives said wholesalers impose minimums and other commercial terms, and that changing the rule would shift revenue to wholesalers and away from local retailers that currently service caterers.

No final vote on the bill was taken; as with the other items on the agenda, the committee had earlier voted to hold all bills for further study. Witnesses on both sides filed written testimony and committee members asked for additional detail on commercial terms, delivery minimums and the potential competitive impact on small retailers.