For more than three decades, LeeAnne Maxfield ran the state liquor store in Delta, Utah and served everyone from regulars to tourists.
But this summer, her store went dark.
The date above the counter reads June 21, 2004 and offers a reminder of the legal drinking age. Now June 21 holds new weight: June 21, 2024 was the last day customers could buy alcohol in Delta or anywhere in Millard County.
Her own son too had been forced to close the store he operated in neighboring Fillmore — an ironically named spot for a place that’s now run dry.
“My children grew up here,” Maxfield told FOX 13 News. “It’s been part of their lives.”
Across the state, about a dozen rural liquor stores, like Maxfield’s, have shuttered, leaving communities and small business owners scrambling.
That closure and others like it across rural Utah are the result of a dispute between small-town and rural liquor store operators and the Utah Department of Alcoholic Beverage Services (DABS).
In January, DABS issued new contract terms for “package agencies,” which are state liquor stores run by private individuals in rural areas. For operators like Maxfield, the new terms weren’t just tough, they were completely unrealistic.
“Several were very concerning,” Maxfield said.
One of the biggest issues? Credit and debit card fees.
“Those merchant fees would now be passed on to me,” Maxfield said, guessing the cost to be about $24,000 per year.
“To put that in perspective,” she added, “last year, my take-home pay after taxes and expenses was $30,000.”
DABS solution to the issues the new credit and debit card terms presented were dismissive, Maxfield said.
“They told me I don’t have to take credit cards if I don’t want to,” she said. “‘Just don’t take cards.’ But that creates its own set of problems.”
Tourists rarely carry cash and Maxfield didn’t want to keep large amounts of money in the store for safety reasons.
DABS also dictates prices. Maxfield wasn’t allowed to negotiate the terms or raise rates to offset new costs and she wasn’t given a chance to negotiate.
Maxfield is one of several plaintiffs in a lawsuit against the state, arguing that Utah has misclassified package agency operators as independent contractors rather than employees.
The group’s attorney, Erika Larsen, believes the contract changes are retaliatory.
“Our contention is it is a direct and clear retaliation,” Larsen said.
She says the state previously required package agencies to use state-managed point-of-sale systems — a key point in their lawsuit to demonstrate employee-like control.
“Because this lawsuit has been filed, [DABS administrators] have been unwilling to work with any of the… package agents on this,” Larsen said.
DABS declined an interview but said the new rules give more “autonomy” to the operators.
In a statement, DABS spokeswoman Michelle Schmitt said the department is “meeting with local economic development and other officials” to find new contractors for the empty stores. Some locations, such as Kanab, Helper and Kamas, are still pending, but Fillmore, Milford and Delta remain without liquor outlets.
The ripple effects are already being felt.
At Curley’s Lounge, a bar just down the street from Maxfield’s closed store, owner Amanda Stanworth now has to drive 50 miles just to restock.
“I know it’s going to cost me at least $20 just for gas a week to go over there,” she said. “Plus, I have to pay for somebody else to come and work for me while I go over.”
She’s also had to turn away customers looking for basic items she legally can’t sell.
“She said, ‘I just need a cup of white wine to cook my chicken dinner for tonight,’” Stanworth recalled.
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The closures in Utah’s rural liquor stores are a case study in how fragile small business models can be when contracts, regulations and outside control suddenly change. Here are four key lessons for small business owners:
1. Know your break-even point
When Maxfield was told she’d have to cover $24,000 in new credit card fees, she immediately realized it would slash her take-home earnings by over 80%, leaving her with one choice: to close down.
Make sure you understand your margins and that you have clear bookkeeping. A single policy or supplier change can throw your business underwater overnight.
2. Watch for contract changes
Maxfield said DABS refused to negotiate or even discuss alternatives.
If you operate under a contract or license (like a franchise, concession, or agency), review changes with your legal advisor as soon as possible. Lobby, organize with others impacted and push back formally as an organized unit before the contract is finalized.
3. Watch for worker misclassification
Maxfield and others argue they were treated as employees, bound by rules, required to use state systems, but they didn’t get benefits or protections.
If you’re a contractor with limited independence, you may be misclassified. That can cost you tens of thousands in retirement, health care, or legal protections. Talk to an employment attorney if you require clarification.
4. Diversify supply
If you’re locked into a single supplier or system, plan for backup. Build relationships with alternate vendors or partners, or lobby for policy flexibility before you need it.
As for Maxfield, it’s not just a financial loss; it hits on a personal level, too.
“A lot of people, I could actually have their items sitting on the counter by the time they got in the door,” she said.
She acted as a community buffer, helping problem drinkers manage their intake and keeping teens from trouble.
“Kids aren’t going to try to buy from me because I’m going to call your mom before I call the sheriff,” she said.
Now, she worries that people will drive long distances just to stock up. And no one has stepped in to take her place.
For their part, “[DABS] seeks business-minded individuals interested in this unique opportunity,” the organization shared in a statement.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
