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Alcohol Concerns Rising Among Bar, Restaurant Owners
March 9, 2007

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News Summary

Faced with greater exposure to liability lawsuits and more public scrutiny, bar and restaurant owners are increasing their server training to prevent alcohol service to intoxicated patrons, the Chicago Sun Times reported Feb. 26.

"It's such a litigious society, if someone as much as trips, there's a lawsuit," said Ted Lanzi, a New York restauranteur who has sent 120 of his 200 employees to ServSafe Alcohol programs in the past year -- at a cost of $85 each. The course teaches employees how alcohol affects the body, the signs of intoxication and how to prevent it, and tactics for denying service to drunk customers.

Besides the threat of lawsuits, bars and restaurants also are seeing insurance premiums rise and, in some cases, insurers denying liquor liability coverage to sellers who don't conduct server training.

"I would say that beginning five to 10 years ago, people started asking the question [about server training]. More recently, in the past three to five years, more companies have made it a requirement, and now, it's a widespread requirement," said Neil Owens, vice president at insurance broker Elias B. Cohen & Associates of New Jersey.

Law-enforcement officials also are paying more attention to alcohol service, and penalties for offenses like serving alcohol to minors are rising. "Things that used to be misdemeanors are felonies, and they can serve jail time," said Debbie Fox, director of training for the Palm Restaurant Group, which developed the ServSafe program.

"There is a growing societal awareness of drinking because of MADD [Mothers Against Drunk Driving] and SADD [Students Against Destructive Decisions]," added Stephen Greger, loss-control director for commercial business at Fireman's Fund Insurance Co. "There also seems to be a movement in the country against drinking in excess. You see that on college campuses. There seems to be a little more conservative outlook in many areas, and this is one of them."

Server training is mandatory in 11 states, while another 21 states offer special benefits to employers who provide training to employees.

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