The COVID-19 pandemic has many Texas bars scrambling to stay in business.
Thankfully, recent Texas Alcoholic Beverage Commission (TABC) policies now allow bars to open by reclassifying as a restaurant.
This loophole is a great opportunity for Texas bars. It has also created a sense of urgency.
We know you probably wanted your restaurant status to be approved, like, yesterday. But do not rush this application process.
There’s a step by step guide on completing the paperwork for restaurant status that we created just for you!
But there are still small errors you can make along the way.
Take your time. The fastest path to achieving restaurant status for your bar is to complete the Application for Food & Beverage Certificate for Restaurant Status correctly.
So what are the simple mistakes you should watch out for?
Here are the five errors that we see most Texas business owners make.
We know you’re anxious to keep your business running. Avoid these pitfalls and get your application right the first time so you can open sooner.
1.The Wrong Person Signs the Form
The TABC wants to confirm that the individual who signed the Application for Food & Beverage Certificate has the authority to do so.
Who has the authority, you ask?
Turns out, as the business owner, you’ve already determined that. You also reported this information to the TABC during your original permit application.
A few scenarios:
If you have an LLC with a group of managers, you likely applied for your Texas liquor permit with a specific manager’s name. If you reported that your business has one manager and no officers, then the one manager should sign your application.
If it’s not that clear, we recommend you consult with your attorney or licensing professional.
You may need to get your information updated, especially if the management of your business has recently changed.
Pause and get your business details straightened out before moving forward. It will make everything easier for you.
2. Incorrect Math
You'll need to break out your calculator in the TABC Location Packet for Reporting Changes to Retailers (Form L-LRC Updated 8/2020).
Section 21 has an important addition problem you’ll want to get right.
Here it is: Alcoholic Beverage Sales + Food Sales + Other Sales = Total Sales
The TABC wants to see that over 50% of your total sales come from non-alcoholic beverage purchases. This detail allows you to qualify as a restaurant, rather than a bar.
It seems like a simple addition problem, but mistakes happen.
Double-check your work. One addition error and your application could be rejected.
No matter how good your math is, if your numbers do not meet the 51% requirement of non-alcoholic beverage sales, then your application will likely get rejected.
You must offer a majority of sales from non-alcoholic beverages. This is the entire premise of the Application for Food & Beverage Certificate for Restaurant Status.
Save yourself the headache and understand TABC qualifications ahead of time. Then, add up the correct numbers.
3. You Owe the Comptroller Money
The TABC and Comptroller share data.
If there is an outstanding balance with the Comptroller for the business permit holder or an affiliate of the permit holder, the TABC may have this information.
And no one likes to move forward until the money gets paid.
Overdue payments for sales tax or mixed beverage gross receipts tax or could impact approval. You’ll have to make a payment before your Application for Food & Beverage Certificate for Restaurant Status gets processed.
(Side Note: Does your business owe money to a liquor store or other alcohol vendor? These delinquencies are also reported to the Comptroller. Any delinquency reported to the state can potentially delay your approval.)
4. Wrong Form Of Payment
Speaking of money.
The Application for Food & Beverage Certificate for Restaurant Status comes with a $776 fee. Pay the fee, and the TABC will activate the processing of your application.
There are very specific payment methods for this fee.
Online and credit cards are not included.
The TABC will only accept checks written on the permit holders’ account, cashier checks, or money orders.
If you paid via check on behalf of the permit holder or a check written by another company, this will also reject your application. Affiliate checks are not likely to work either.
So make sure you’re choosing the correct payment method and processing payment only from the permit holder.
It’ll be worth every penny!
5. Lack of Response
Even if you submit a perfect application, the TABC may still follow up with you for more information.
Without a response, the TABC will likely move on.
Once your application is submitted, be on the lookout for communication from the TABC.
You provided contact information as part of your Application for Food & Beverage Certificate for Restaurant Status. This is how the TABC would reach out to you.It’s also possible they may use the contact information they already have on file for your permit.
If the TABC contacts you, be ready to respond and answer any follow-up questions. If you do not, your application could be withdrawn and you would have to start over.
A timely response helps you move forward and is also considerate towards the TABC.
Did you already submit your Application for Food & Beverage Certificate and make one of these mistakes?
We can still fix this!
If the issue is with the Comptroller (like overdue payments), you can reach out to get it fixed as soon as possible. If changes are applied fast enough, it may not impact the timing of your application at all.
If the problem is associated with your application, you will have to work with the TABC.
One option is to wait and see what the TABC says. There’s a chance they may let smaller errors slide.
If not, the TABC will let you know about any issues. It may take some time, however. They are processing a lot of Food & Beverage Certificate applications right now!
Rather than wait to hear and risk elongating your application process, we recommend reaching out to the TABC. It’s always better to err on the side of caution and notify them of the problem.
The best option?
Complete your Application for Food & Beverage certificate right the first time! It will help you accomplish your goals faster and make the TABC’s life easier.
We’re here to help you complete your application well the first time!
Download our resource on Completing the Texas Food & Beverage Certificate Application: A Step by Step Guide to Achieving Restaurant Status.