Selling alcohol may be one of the most thoughtful business decisions a restaurant or bar owner can make. With high-profit margins, getting a liquor license can help your business thrive.
However, the application process can be complex and lengthy. It is highly recommended that you consult a business attorney specializing in liquor licensing.
The alcoholic beverage industry represents significant revenue for thousands of restaurant, bar, and hotel owners nationwide. The profits from alcohol sales can offset the cost of a liquor license Houston TX.
Moreover, alcoholic beverages can help businesses stay afloat during economic downturns. It is especially true for off-license retail liquor store owners and restaurants that rely on alcohol sales as their primary source of income.
Additionally, the alcoholic beverage industry is well-established in many communities, and customers may be willing to pay a premium for high-end brands. Therefore, obtaining a liquor license could be an excellent way to increase your business’s bottom line. Regardless of your chosen license type, getting proper insurance coverage is vital.
Alcoholic beverages are a good slice of revenue for thousands of restaurant, bar, and hotel owners across Texas. With profit margins of 60% to 85%, it’s no wonder that jumping through all the hoops of obtaining a liquor license can be worth it.
Liquor licensing requirements vary by state and locality. You can contact your local TABC office for more information on zoning restrictions, fees, standards for late-hour business operations, and certificate of occupancy requirements. Additionally, you’ll want to consider insurance options. Manufacturers and brewers should purchase workers’ compensation and general liability insurance, distributors and wholesalers should obtain commercial, public liability, and alcoholic beverage coverage, and retailers should acquire liquor liability. These policies protect you against lawsuits that can drain your cash flow.
Increased Brand Recognition
Many restaurants that sell alcohol claim that alcoholic beverage sales account for 30% of their revenue. Those sales can significantly affect the bottom line in an industry known for slim profit margins.
The process of obtaining a liquor license can take months or even years. It is in large part due to local communities’ opposition. Those concerned about noise, crime, and disorderly behavior often lobby governing bodies to reject a restaurant or bar’s application for a license.
TABC licensing requirements vary based on the type of business and whether or not there will be on-premises consumption. To avoid costly delays, consulting with an attorney familiar with the process and its specific requirements is essential. The right attorney will help you jump through all the hoops and ensure your application succeeds.
Increased Customer Satisfaction
Several types of TABC licenses are available, depending on the type of alcohol you plan to sell and how you want to serve it. The Mixed Beverage Permit authorizes purchasing, marketing, and storing alcoholic beverages for on-premise consumption (assuming you are in a wet area).
Then there’s the wholesaler or distributor permit that allows a business to buy and sell alcoholic beverages at a lower cost than a retailer would pay. And finally, there is the retail permit that enables a business to sell alcoholic beverages directly to consumers. Each tier has different insurance requirements. Liquor liability insurance is necessary for companies that serve alcohol, as it protects you from expensive lawsuits. It’s also essential to have general and small business insurance and workers’ compensation.
Increased Brand Awareness
The liquor license process can be challenging, but the results are worth it. Adding alcohol sales to your business can be one of the smartest moves you make for your restaurant or bar, as these products offer some of the highest profit margins.
Liquor licenses vary by state, but the steps you will take to obtain one are usually similar. Depending on the type of establishment, you may need an on-license or off-license, and your state’s alcoholic beverage control board may require you to provide other documents.
Local citizens may protest your request for a liquor permit, fearing that your establishment will lead to noisiness and unwelcome changes to their community. When this happens, you should enlist the help of a liquor license defense lawyer to defend your application.