Monthly Archives: August 2013

Hospitality Industry Legal Risks: New Jersey Restaurant Group Fined $500,000 For “Substituting And Selling Cheap Liquor For Premium Brands”

“…The fine includes $400,000 for the violations and $100,000 to cover investigative costs…at one of the 29 businesses, a mixture that included rubbing alcohol and caramel coloring was sold as scotch. In another, premium liquor bottles were refilled with water that was not even clean. Restaurant Liquor Sales Liability 1The state never identified which restaurants or bars those were…The franchisee also faces a lawsuit in state court by two women who claim Briad had instituted a uniform policy to substitute cut-rate liquor for premium brands for during at least a year, in violation of the New Jersey Consumer Fraud Act. It seeks reimbursement for all customer losses and punitive damages of three times the price of each drink…”

An operator of TGI Fridays restaurants in New Jersey has agreed to pay a $500,000 fine for serving customers cheap booze when they paid for top shelf. Acting Attorney General John Hoffman said Wednesday that the fine levied against Livingston-based Briad Group, as a result of an investigation dubbed Operation Swill, should send a message to every bar and restaurant in the state that customers should always get what they pay for.

Under terms of the settlement, Briad agreed not to contest charges that eight of its restaurants were selling customers cheap substitutes in place of premium alcohol. It also agreed to employ a state-appointed monitor through June 14 to ensure its restaurants and employees are in compliance.

As long as there are no further violations during that period, the businesses will avoid five-day suspensions of their liquor licenses, the attorney general said.

For more:  http://www.bostonglobe.com/business/2013/07/31/tgi-fridays-fined-for-switching-liquor/tFC5CnrWxLByqT35hxVI6J/story.html

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