Prince Rupert, B.C., bar has licence suspended for 22 days after karaoke event

The B.C. Liquor and Cannabis Regulation Branch (BCLCRB) has fined a Prince Rupert bar $10,000 and suspended its licence for 22 days after it served patrons after hours and held a karaoke night against regulations.

Sunset Lounge Bar and Grill on Third Avenue, in the northwest B.C. city, was handed the stiff penalty on Feb. 21, after the branch found it had fallen afoul of liquor laws on more than one occasion.

The branch found that a karaoke night, which is prominently advertised on Sunset's social media, went against the bar's licence conditions — which only allow for "non-participation entertainment" such as live music performances.

A 22-day suspension in service, which will start March 20, was also a result of liquor inspectors not being given documents on time, according to the branch's decision.

"I find that the penalty in this matter needs to impress upon the Licensee the need to take appropriate steps to come into and maintain compliance with the terms of its Licence," wrote a delegate of the BCLCRB in their decision.

In addition to the fine, the branch ordered the bar's liquor licence be held at a local police detachment until the suspension is lifted.

CBC News made multiple attempts to reach the owner of Sunset Lounge Bar and Grill, but did not hear back before publication.

Food-primary licence

Under B.C.'s liquor control laws and regulations, bars aren't allowed to have their patrons drink in the service area half an hour after the end of liquor service.

"Patrons who consume liquor and leave an establishment after the licensed hours of liquor service may disturb nearby residents and businesses," reads the decision. 

"Selling liquor after hours also leads to unfair competition with other licensed establishments."

In addition, a "food-primary licence" — the kind of liquor licence held by Sunset — requires a bar owner to apply to their local government before they can offer dine-and-dance or karaoke events, which require patron participation.

"That approval is required to ensure that a food primary licensee does not operate as if it is a nightclub or bar, which requires a more stringent approval process to be followed," reads the decision.

The branch found that liquor inspectors observed that, bar staff were serving liquor after midnight — the end of the service time — at a karaoke event on Feb. 17, 2024.

A few months before that, an RCMP officer said they observed people being served liquor at 12:41 a.m. on Nov. 18, 2023, and people drinking well past 1 a.m. that night.

Sunset's owner is not listed in the decision as disputing any of the events observed by inspectors during the karaoke event.

He is recorded as telling the branch that the bar had been trying for over a year to extend its business hours, and obtain permission to have patron participation events.

As for the night where officers observed the bar serving alcohol after hours in November 2023, the owner said that the alcohol in question had been ordered before the end of service and he had ordered that it be removed.

But the liquor branch preferred the inspector's evidence on the matter, and reprimanded Sunset for not producing records on time after the contravention.

"I have also considered that the imposition of an appropriate penalty is intended to both redress the Licensee's non-compliance and, by way of deterrence, to encourage future compliance by this and other licensees," the decision reads.