3 Liquor License Classifications

Any business that wants to sell alcoholic beverages to the public must obtain a liquor license first. The process of applying for a liquor license varies from one state to the next due to differences in state liquor laws.

What most states do have in common is a classification system for their liquor licenses. You will need to know which type of license you need before you begin filling out your application for licensure in order to provide a complete and accurate application.

1. Tavern License

A tavern license is typically reserved for establishments that serve both food and alcoholic beverages. Although your primary product may be the foods that are prepared in your commercial kitchen, you will likely still generate quite a bit of profit from the sale of alcoholic drinks. If your alcohol sales make up a specific percentage of your overall profit, you will need a tavern license to continue serving your customers.

Each state sets different limits when it comes to the allowable percentage of the total profit that can come from alcohol, so check with a state representative before filing your application to determine if you qualify.

2. Beer and Wine License

The type of alcohol you intend to serve in your establishment will impact the type of liquor license you will be required to obtain. A lot of businesses make the choice to only serve beer and wine to their guests.

Most state governments place beer and wine in a different category than hard liquors. A beer and wine license allows for the sale of beer and wine, but no other types of spirits.

The cost of a beer and wine liquor license tends to be cheaper than a full license, so it makes sense to pursue this type of licensing if you don't plan on selling hard liquor in your establishment.

3. Restaurant Liquor License

The menu at most restaurants includes alcoholic beverages. In order to make these drinks available to customers, restaurants must obtain a liquor license.

Specialized restaurant licenses are available for businesses that sell both food and alcohol, but the percentage of their sales that come from alcohol remains under a certain limit. In other words, most of your income will need to come from the sale of food items if you want to qualify for a restaurant liquor license.

Navigating the liquor licensing process can be a challenge. Consider using a consultant with experience in the liquor industry to help you complete your application.

For more information, reach out to a company such as Arizona Liquor Industry Consultants.