More Legal Background on the Pearlz Variance Application

State Liquor law provides that retail licensees (bars, restaurants) may sell alcoholic beverages until 2am.

Local law can trump that provision. And in the case of Pearlz, City of Charleston Zoning law does just that. See this citation:

Sec. 54-204. Hours of operation; restrictions.

a. Within CT. In commercial transitional, CT district, certain uses, as specified herein, are restricted to normal business hours. In the CT district, normal business hours are deemed to be hours of operation beginning no earlier than 7 a.m. and ending no later than 8 p.m.

b. Within LB. In the limited business, LB district, certain uses, as specified herein, are restricted to operating only between 7 a.m. and 11 p.m., except that theaters may operate beyond 11 p.m. although theater box offices may not sell tickets after 11 p.m.

(Ord. No. 1997-524, § 1, 11-25-97)

Pearlz is in a designated LB District in which liquor sales are restricted to a 11pm cutoff.
Clearly, if they are held to this, it will have a major impact on their profits.
Apparently, there is a history as to why this section of East Bay Street was designated "LB," likely to be that the City wished to keep noise and nuisance in this sector under strict control.

This, of course, is precisely why this is an issue now.