“It takes about $5 million a year out of the rural convenience store pockets,” he said.
Agency stores are not allowed to mark up their alcohol prices to absorb the added expense, unlike restaurants and bars that are permitted to sell booze for more than the LCBO price, Bryans said.
An LCBO agency store makes 9.8% on its sales, and the LCBO charges 2.5% for delivery, he said.
Credit card fees also chip away at the revenue, he said.
“Now The Beer Store has dropped … another $250 delivery charge,” Bryans said. “So really, these stores are going to be working on 2% to 3% which is unfair when they handle all of the returns, all of the empties, and they have labour costs, refrigeration costs, rent costs and there’s no way to recoup that.”