Dive Brief:

• When Costco set up shop in Washington, D.C., it devised a clever workaround for a city law preventing the sale of alcoholic beverages and gasoline at the same business — but some convenience store owners aren't amused.
• Costco's workaround involved splitting its D.C. location in two and setting up a wholly owned subsidiary, CWC WDC LLC, to operate the gas station, which sells gas around $.30/gallon cheaper than local competitors.
• As a result, angry gas station owners have challenged the zoning decision, tried to have the liquor license revoked or to make it so all gas stations have the right to a liquor license, and one local neighborhood advisory commissioner even says he received death threats and accusations of receiving kickbacks.

Dive Insight:

A 1983 law in D.C. prevents businesses from selling both gasoline and alcohol as part of an effort to curb drunk driving — because people definitely don't ever drive to grocery stores or liquor stores when they buy booze. It's understandable that gas station owners would be irate over Costco's ability to sidestep the law via a subsidiary, but is it really worth death threats? Perhaps it's time for the city to just reconsider a fairly ridiculous law.