So far as I can discern, the hours are set by the AGCO; though they have a historical habit of coinciding w/whatever the LCBO would like to do.
You will note that most grocers begin alcohol sales at 9am; which is typically earlier than the LCBO, and run till 11pm, Mon-Saturday; 6pm on Sundays.
This has been the rule for private licensees (Wine Shoppe, Wine Rack etc.) for decades, under governments of all stripes.
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The above having been said, I don't find the early Sunday hours particularly sensible either.
Worth noting here, is that in the last contract round w/its union, the LCBO got rid of Sunday shift premiums.
I'm going to suggest (hope?) that that is not a coincidence; and that later Sunday service is in the offing. (I'm hearing 8pm......but can't say for sure)
See above.
Historically the LCBO was closed Sundays.
This changed just about 20 years ago.
When the change occurred, LCBO workers got a Sunday shift premium for working Sundays.
This created a disincentive to longer Sunday hours.
Also this wasn't that long after Sunday shopping came in, in Ontario, and routine store/mall hours were Noon-5pm at the time.
Since then, 11-7pm has become common place among non-grocers, and grocers are routinely open much later.
The rules around times were set up to ensure the LCBO wasn't disadvantaged.
Given the elimination of the Sunday shift premiums, I expect change may be in the offing.