The Texas Alcoholic Beverage Commission (TABC) offers various options for restaurants seeking a Texas liquor license or permit. However, all available options are considered "on-premise" permits, meaning they are intended for selling alcohol directly to consumers for consumption on the premises.
Before selecting the best TABC permit for your establishment, you must first confirm the types of liquor licenses or permits available in your specific city or county. Cities, counties, and even county electoral districts have the authority to choose the types of permits allowed through local elections, and many have done so. An area where liquor licenses are prohibited is referred to as a "dry area." Look for more information on dry areas in an upcoming blog.
Assuming you are in an area where alcohol can be sold, a "wet area," and where obtaining a Texas liquor license or permit is possible, your next step is to decide what types of alcohol you would like to serve to your customers. This will help you identify which on-premise alcohol sales permit is best for your establishment: the Mixed Beverage Permit, Wine and Malt Beverage Retailer’s Permit, or Malt Beverage Retail Dealer’s On-Premise License.
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 consumption on the premises. If you aim to have a full bar, this is the permit you need to obtain. It is the most expensive permit for a venue or business, with state fees for the initial permit totaling $5,300. The good news is that these fees decrease at the first renewal, with state fees totaling $2,650 every two years.
A unique requirement of this permit is that Mixed Beverage Permit holders must purchase all distilled spirits from a company holding local distributor permits from the TABC or a "Local Distributor."
Another important requirement is that the sold alcohol must be consumed on the premises, with few exceptions. Customers are specifically prohibited from leaving the bar or restaurant with alcohol. An exception to this rule is when a customer orders a bottle of wine with their meal and doesn't finish it. In this case, the customer can reseal the wine and take the bottle home. There are also some exceptions for Mixed Beverage Permit holders who also have a brewery license or "Brewpub License" and produce malt liquor or beer for consumption off-site.
NEW UPDATE: As of September 2021, alcoholic beverages for takeout, initially allowed through an emergency authorization during the COVID-19 pandemic, are now formally permitted by Texas law. Note that what is currently allowed is different from what was authorized during the height of the pandemic. Future blogs will provide more information on takeout alcoholic beverages for Texas alcoholic beverage license holders. For now, you can find information on takeout alcoholic beverages on the TABC website. A key requirement for takeout alcohol is that the holder maintains a Mixed Beverage Permit in combination with a Takeout Mixed Beverage Permit.
WINE AND MALT BEVERAGE RETAILER’S PERMIT
The Wine and Malt Beverage Retailer’s Permit (BG) is slightly different as it allows consumption both on and off the premises. You may know this permit by another name. Until September 2021, it was known as the Wine and Beer Retailer’s Permit. Regardless of the name, this permit allows you to sell beer, wine, and malt liquors with an alcohol content exceeding 0.5% by volume but not exceeding 17% by volume, for consumption inside or outside the establishment. Also, only for on-premise consumption, you can sell traditional port or sherry with an alcohol content exceeding 0.5% by volume but not exceeding 24% by volume. Note that some cities and counties only allow up to 14% alcohol by volume, so if you are considering this permit, confirm if you are located in a dry city or county or where alcohol sales are permitted.
As of September 1, 2021, fees have changed. The fee for the Wine and Malt Beverage Retailer’s Permit is $1,900. The downside is that if you are in a county outside of Bexar, Dallas, Harris, and Tarrant counties, the fee has increased significantly, nearly doubling.
Keep in mind that with this permit, you cannot restrict consumption outside the establishment. The Alcoholic Beverage Code specifically requires the holder of a Wine and Malt Beverage Retailer’s Permit to provide seating where customers can consume alcohol on-site if they choose.
Although the holder of a Wine and Malt Beverage Retailer’s Permit is not authorized to buy and sell distilled spirits, they can decide to allow customers to bring their own distilled spirits (BYOB).
Don't forget that all permits authorizing on-site alcohol consumption generally require a Conduct Surety Bond. The holder of a Wine and Malt Beverage Retailer’s Permit must also maintain a Performance Bond in addition to their Conduct Surety Bond.
MALT BEVERAGE 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, as it allows consumption both on and off the premises. However, it only allows the license holder to sell malt liquors, including beer.
Fees for this permit have also increased for some counties. If you are in Bexar, Dallas, Harris, or Tarrant counties, 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 holder of the Wine and Malt Beverage Retailer’s Permit, the holder of the Malt Beverage Retail Dealer’s On-Premise License must maintain a Performance Bond in addition to their Conduct Surety Bond.
SECONDARY PERMITS
There are several "secondary" permits and licenses available for these three "primary" liquor sales permits: a Food and Beverage Certificate, Late Hours Permit, and Brewery License. The TABC offers a description of each on its website here.
Each of these secondary permits offers additional benefits for the liquor license, but they may also add additional requirements. For example, a holder of a Food and Beverage Certificate is not required to maintain a Conduct Surety Bond but is required to comply with certain requirements related to food service. Stay tuned to our blog for a more detailed description of these secondary permits.
WHAT 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 to all licenses available in Texas for selling establishments.
Disclaimer: Nothing in our articles or on our website is legal advice and should not be taken as such. Direct all legal questions to your attorney. Although Storm Liquor License is not a law firm, we can refer you as needed.
