Updated March 30, 2022
The Texas Alcoholic Beverage Commission (TABC) offers a couple of different options for restaurants wanting a Texas liquor license or permit. However, all options available are considered “on-premise” permits, meaning you intend to sell alcohol directly to the consumer which will be consumed on the premises.
Before you can choose the best TABC permit for your location, you first need to confirm what types of liquor licenses or permits are available at your specific location. Cities, counties, and even precincts have the ability to hold local elections to restrict the types of permits allowed — and many have. An area in which liquor licenses are prohibited is often referred to as a “dry area.” Look for more information on dry areas in an upcoming blog.
Assuming you are in a “wet area” for all Texas liquor licenses and permits and your location meets any city or county requirements (zoning, sufficient distance from protected places, etc.), your next step is deciding what types of alcohol you would like to serve to your customers. This will help you identify which of the on-premise retail liquor licenses or permits is best for your location: the Mixed Beverage Permit, the Wine and Malt Retailer’s Permit, or the Retail Dealer’s On-Premise Permit.
MIXED BEVERAGE PERMIT
A Mixed Beverage Permit (MB) is the only permit that allows you to sell all legal alcoholic beverages, including beer, wine, and distilled spirits, for on-premise consumption. If you intend to have a full bar, this is the permit that you need. It is the most expensive permit to hold as an on-premise retailer — the state fees for the initial permit total $5,300. The good news is that those fees reduce upon the first renewal. The state fees for each renewal total $2,650 every two years.
One unique requirement of this permit is that Mixed Beverage Permit holders must purchase all distilled spirits from a company that holds both the Package Store and Local Distributor’s Permits.
Another important requirement is that alcohol sold must be consumed on-premises. Customers are strictly prohibited from leaving the bar or restaurant with alcohol. One exception to this rule is when a customer orders a bottle of wine with their meal and does not finish it. In this instance, the customer may re-cork the wine and leave with the bottle. There are also some exceptions for Mixed Beverage Permit holders who also hold a Brewpub License and brew malt liquor, ale, or beer for off-premise consumption.
UPDATE: As of September 2021, alcohol-to-go, which was allowed via emergency authorization during the COVID-19 pandemic, is now formally permitted under Texas law. Know that what is allowed now is slightly different than what was authorized during the worst of the pandemic. Upcoming blogs will have more information on alcohol-to-go for Texas liquor license holders. For now, you can find information about alcohol-to-go on the TABC’s website. A key requirement for alcohol-to-go is that the Mixed Beverage Permit holder also hold a Food and Beverage Certificate.
WINE AND MALT BEVERAGE RETAILER’S PERMIT
The Wine and Malt Beverage Retailer’s Permit (BG) is a little bit different as it allows on-premises and off-premises consumption–your customers can drink beverages at your location or take them to go. You may know this permit by another name. Until September 2021 it was called the Wine and Beer Retailer’s Permit. By either name, the BG permit allows you to sell beer, wine, and malt liquors containing alcohol in excess of 0.5% by volume — but not more than 17% by volume — for on- or off-premise consumption. Also, for on-premises consumption only, you may sell traditional port or sherry containing alcohol in excess of 0.5% by volume but not more than 24% by volume. Note that some cities and counties only allow up to 14% alcohol by volume, so make sure to confirm your specific wet/dry status if you are considering this permit.
As of September 2021, the fee for Wine and Malt Beverage Retailer’s Permit is $1,900. The fees for the Wine and Malt Beverage Retailer’s Permit used to vary depending on which county your business is located–not so anymore. The good news is that if you are in Bexar, Dallas, Harris, or Tarrant County, the fees have reduced from $2,553 to $1,900 and at each renewal. If you are not in one of those counties, unfortunately the fees have increased from $903 to $1,900 for each permit term.
Note that with this permit you cannot restrict consumption to being off-premise. The Alcoholic Beverage Code specifically requires that the holder of a Wine and Malt Beverage Retailer’s Permit to provide a seating area where customers can consume alcohol on-premise if they so desire.
Though the holder of a Wine and Malt Beverage Retailer is not authorized to purchase and sell distilled spirits, it may choose to allow customers to BYOB distilled spirits.
Don’t forget that permits that authorize the on-premise consumption of alcohol generally must hold a Conduct Surety Bond and the Wine and Malt Beverage Retailer permit holder is no exception. The Wine and Malt Beverage Retailer’s Permit holder must additionally maintain a Performance Bond.
RETAIL DEALER’S ON-PREMISE LICENSE
The final option, the Malt Beverage Retail Dealer’s On-Premise License (BE), is similar to the Wine and Malt Beverage Retailer’s Permit (formerly known as the Wine and Beer Retailer’s Permit) as it allows on- and off-premises consumption. However, it only allows the license holder to sell malt liquors, including beer.
The fees for this permit have also changed and are now consistent state-wide rather than depending on your location. If you are in Bexar, Dallas, Harris, or Tarrant County, the fees are now $1,100 instead of $2,553. If you are not in one of those counties, the fees have increased to $1,100 instead of $853.
Like the Wine and Malt Beverage Retailer’s Permit holder, the Retail Dealer’s On-Premise License holder must keep a Performance Bond in addition to its Conduct Surety Bond.
SECONDARY PERMITS
There are several “secondary” permits and licenses available to these three “primary” retail liquor licenses or permits: a Food and Beverage Certificate, a Late Hours Permit, and a Brewpub License. The TABC offers a description of each of these on its website here.
Each of these secondary permits offers additional benefits to the liquor license, but these permits can also tack on additional requirements. For example, the holder of a Food and Beverage Certificate does not have to hold a Conduct Surety Bond, but also must meet certain requirements regarding food service. Stay tuned to our blog for a more in-depth description of these secondary permits.
WHICH PERMIT DO YOU NEED?
Not sure what type of Texas liquor license or permit your establishment needs? Download our Permit Summary for a quick reference guide of all the licenses available in Texas to retail establishments.
Editor’s Note: This post was originally published in February 2019 has been revamped and updated for accuracy and comprehensiveness.
Disclaimer: Nothing in our articles or on our website is legal advice and should not be taken as such. Please address all legal questions to your counsel. While Storm Liquor License is not a law firm, we can refer you as needed.
