During COVID, alcohol to go became a revenue lifeline for restaurants that had to close their dining areas, and it was so popular that restaurants and customers alike hoped it wouldn’t end after the pandemic. In May of 2021, House Bill 1024 was signed into law, so alcohol to go is here to stay in Texas.
This is great news for Texas restaurants (and patrons)! But what does the new law mean for your establishment?
What is alcohol to go?
First, when we say alcohol to go, we’re talking about alcohol that can be sold to the ultimate consumer at your location to take away (a takeout order), as well as alcohol that is sold to the ultimate consumer but delivered off premises by you or someone else (by restaurant staff, Uber Eats or other delivery services).
Before we dive into the law, let’s back up and see how we got here:
Before COVID …
Not many people realize that, before COVID, alcohol delivery was legal but had restrictions that ended up being prohibitive. We really saw this during COVID, when those restrictions were more of a hindrance than a help for restaurants desperate for revenue (and for people at home who really wanted a margarita).
During COVID …
After much public outcry, Governor Abbott allowed alcohol to go, and even mixed drinks to go. But these were only temporary fixes.
Luckily, 2021 brought the Texas legislature back into session, Governor Abbott signed a bill into law, making alcohol to go permanent.
Today ...
Here is what the new law says:
In short, beer, wine and mixed drinks can be included in pickup and delivery food orders.
Who can do it? Restaurants.
Confused about who is a restaurant and who isn’t? You’re in good company. During COVID, Governor Abbott used a threshold connected to whether you post a red gun sign or a blue gun sign to determine whether or not you were a “restaurant,” and then you could outsource food, use food trucks, etc. Forget all of that.
Now, mixed beverage permit holders who also hold a food and beverage certificate are the only mixed beverage permit holders who can deliver alcohol or offer it to go. (Are you a wine and beer retailer’s permit holder? We know, you’ve always been able to offer alcohol to go and for delivery. Quit gloating and move along.)
What can you offer?
You can sell alcohol for delivery or to go, but only with food and only according to the following:
|
Alcoholic Beverage |
Packaging |
Size |
|
Beer |
Original container sealed by the manufacturer |
Any size -- if your distributor can sell it to you, you can sell it to your customers |
|
Wine |
Original container sealed by the manufacturer |
Any size -- if your distributor can sell it to you, you’re all set |
|
Distilled Spirits (straight liquor) |
Original single-serving container sealed by the manufacturer |
375 mL or less |
|
Mixed Drinks (Distilled Spirits mixed with other things) |
Tamper-proof container with restaurant’s name and “alcoholic beverage” written on it |
Any size (but don’t go crazy; encouraging the excessive consumption of alcohol is prohibited) |
What is a “tamper-proof container”?
Not many things in the Alcoholic Beverage Code are spelled out in black and white with examples -- this one is.
“‘Tamper-proof container’ means a container that, once sealed, clearly shows whether it has been opened. The term includes a closed cup or similar container that is: (A) placed into a bag that has been sealed with a zip tie or staple; (B) sealed with shrink wrap or a similar seal; or (C) sealed by other methods approved by rule of the commission”
You should be using tamper-proof containers anyway with all of your to-go items. Why? Almost ⅓ of delivery drivers admit to sampling the food they are delivering. Gross!
Who can make the deliveries?
1. You. You and your employees (and contractors) can deliver the alcohol.
2. Consumer delivery permit holders. These are the DoorDashes of the world.
In each case, all the prohibitions against sales to intoxicated people and to minors still apply.
If you use a consumer delivery permit holder to make the sale, the duty to make sure these laws aren’t violated transfers to them. If your employees or contractors do it, the responsibility remains with you to make sure they follow the law.
Should I be worried about open container laws?
Yes! The law specifically states that, if you are toting one of those tamper-proof containers, you have to keep it out of the passenger area of the vehicle.
Actually, this is another spot where we are blessed with the clarity of examples. Safe spaces include a locked glove compartment (not sure why this would be a good option, but you do you), the trunk, or the area behind the last row of seats. While you’re at it, just put all the alcohol back there. Better safe than sorry (I once had a police officer tell me that a six pack missing one beer was an open container).
What if I don’t have a Food and Beverage Certificate?
If you want to offer alcohol to go, get one. You must hold a food and beverage certificate to sell alcohol to go with food orders.
One other factor to keep in mind is that the TABC Licensing Division is going dark on July 31. They will not be accepting any applications, except renewals, until September 1. Expect that getting your food and beverage certificate will take at least 30 days from the time you submit to the TABC.
Need more information?
Need more help getting or keeping your Texas liquor license? We have over 20 years of knowledge on the Texas Alcoholic Beverage Commission and have taken everything you need to know and simplified it for your use. Check out our library of free downloads, or visit our blog to find the answers you need.