Anyone who intends to sell alcoholic beverages in the great state of Texas must understand and comply with a number of important laws. The Texas Alcoholic Beverage Commission requires the placement of visible signs at any establishment where liquor will be sold and/or consumed. A Houston liquor license service can help you to obtain the proper licenses for your business.

Types of Establishments that Require Alcohol Signage

Restaurant
According to Texas statutes, a restaurant is defined as any establishment where food and beverages are prepared and sold for on-site consumption or to be taken away and consumed at another location. Restaurants are additionally classified by a Limited or General designation. Only a Restaurant-General may legally obtain a Texas liquor license to sell alcoholic beverages. To qualify as a Restaurant-General, the establishment must derive a minimum of 51% of their gross sales from the sale of prepared comestibles.

Cocktail Lounge
Any establishment that sells wine, beer or cocktails to be consumed on-site is considered a cocktail lounge. Bowling alleys, dance halls, billiard and pool parlors and live music venues are also considered to be cocktail lounges in the eyes of the law, provided that alcoholic beverages account for at least 49% of their gross revenue.

Package Store
A package store is a physically discrete establishment where liquor may be legally sold but not consumed. A package store may sell other things in addition to alcohol, but must close their doors to business during times when alcohol may not be sold. The times when liquor may not be sold in a package store include Sundays, Christmas, New Years Day and Thanksgiving Day.

Sixty-Day Signage

The TABC may require you to post a sixty-day sign of public intention prior to or during the time you apply for your Texas alcoholic beverage license. If the same location has been licensed within the past two years, you may receive a waiver of this requirement.

Additional Signs You May Be Required to Post

A mandatory sixty-day sign where the public can read your intent to sell liquor is only the first of many signs you will need to know about. Depending on the type of establishment you operate, other signs may be required in order to obtain and keep a Texas liquor license.

Health Risk Warning Sign
Alcoholic beverages sold in the United States come with a warning on the label. Since you may be serving adult beverages without such a label, you may be required to post approved warning signs about the health dangers of drinking alcohol during pregnancy.

Public Information and Complaint Sign
If you own a bar, lounge or restaurant where alcohol is served, you will be required by law to visibly post a notice along with a phone number where a person can make a formal complaint about the alcoholic beverages or service provided by your business.

Weapons Warning Sign
If less than half of your gross revenue is derived from liquor sales, you will be required to post a sign that clearly states the following: “It is unlawful to carry a weapon on the premises unless the person is licensed to carry the weapon under the concealed handgun law.” If your liquor sales account for 51% or more of your gross revenue, the weapons sign you post will be superimposed with the notation that possessing a concealed weapon within your establishment constitutes a felony in the state of Texas.

If you have questions or would like to begin the application process for your Texas liquor license, A Houston liquor license service can answer your questions and help you to obtain the licenses needed for your type of business.

Maintaining a Texas alcoholic beverage license requires strict adherence to the regulations and requirements of the Texas Alcoholic Beverage Commission, more commonly referred to as TABC. Consumers can file complaints against restaurants, bars, stores and nightclubs that fail to comply with TABC rules. Common violations include the following:

• The sale of alcoholic beverages to minors
• Engaging in illegal activities that may include drug use, gambling or prostitution
• Over-serving customers or selling alcohol to intoxicated patrons or customers
• Selling alcohol without a TABC permit
• Serving non-members with alcoholic beverages inside a private club

These violations can result in the loss of the Texas liquor license held by the individual or company. Depending on the severity and type of the offense, the individuals responsible may also face criminal prosecution for their actions.

Filing a Complaint with TABC

TABC offers residents of Texas a variety of ways to file a complaint against individuals and establishments that violate the agency’s regulations.

• The TABC mobile application allows convenient access to the complaint center on the go. Designed to work with most Android smartphones, this app makes it easy to report violations quickly for the most effective response by the agency.
• E-mail complaints can be submitted to complaints@tabc.state.tx.us for review by TABC staff members.
• Residents and guests to the state of Texas can also fill out a form for mailing, faxing or personal delivery. The form is available in Microsoft Word or Adobe PDF for optimal convenience and compatibility.

The TABC website provides address and fax number information for those interested in filing a complaint. It also allows residents and guests to identify the closest TABC office for in-person delivery.

Making an Anonymous Complaint

In some cases, Texas residents and visitors may be intimidated or frightened to make a liquor license complaint against a particular individual or business. This is especially true for those employed by companies that violate liquor license regulations or for those who live in close proximity to these businesses. The repercussions to these whistle-blowers can be serious and may include the loss of their jobs or threats against themselves or their families. The TABC allows for anonymous complaints to provide added protection for these Texas residents and advises those who wish to remain anonymous to provide only their personal email address to the agency. Personal email addresses are considered confidential under the Public Information Act and will not be released to the public upon request.

Staying on the Right Side of the Law

Texas establishments must maintain their liquor license in good standing to sell alcoholic beverages within the state. These bars, restaurants and stores can promote compliance with TABC regulations in a number of ways:

• Educating servers and cashiers regarding potential violations of the liquor license code, including over-serving customers and setting a cut-off point for patrons in the restaurant and bar environment
• Requiring identification from all customers who appear to be under the age of 30 to prevent the sale of alcohol to minors
• Maintaining a clean and legal environment throughout the store or establishment premises to avoid legal entanglements and ensure full compliance with TABC rules
• If complaints do occur, resolving them quickly and effectively is the best way to retain the right to sell alcoholic beverages in the state of Texas.

Working with a professional Houston liquor license service can provide added help for restaurants, bars, nightclubs and stores that sell alcoholic beverages in Texas. These experienced consultants can offer assistance in setting up employee training plans, establishing ground rules and navigating the liquor license permit process. By enlisting the help of these knowledgeable professionals, businesses in Houston and the surrounding communities can ensure full compliance with TABC and can avoid the stress and inconvenience of complaints against their establishments.

The ability to serve alcohol in Texas is a privilege, so every alcohol retailer must obtain the appropriate Texas liquor license. The problem is that there are city, county, state and federal licenses and permits, and you may not know which ones you need.

This entire process will be much easier for you if you do not try to take care of this yourself. A Houston liquor license service will take you by the hand from the beginning and remain with you until the process is completed. This type of business will ensure that you perform every step correctly so that this course of action takes the least amount of time possible. This service can also help you renew your Houston liquor license, so your business will always be in compliance with the law.

The Texas Alcoholic Beverage Commission

Alcohol retailers suffer serious consequences when an intoxicated patron or minor injures them self or others after leaving the establishment’s premises. The Texas Alcoholic Beverage Commission (TABC) wanted to reduce the chances that these unfortunate incidents would occur, so they created the “TABC Manager’s Awareness Program.” This program is meant to be a roadmap that helps managers voluntarily comply with the “Texas Alcoholic Beverage Code.”

The Texas Alcoholic Beverage Code

Under the Texas Alcoholic Beverage Code, servers and sellers are required to refuse to serve alcoholic beverages to obviously intoxicated adults and anyone under the age of 21. The code also requires servers and sellers to take things a step further. They must keep a minor from drinking while on the premises, and they must also keep patrons from consuming alcoholic beverages until they are intoxicated. If they are already drunk, the wait staff must stop serving these customers.

Failure to Comply with the Code

Those who fail to follow the Texas Alcoholic Beverage Code’s rules will suffer criminal penalties. A sale to a minor can possibly result in some or all of the following:

• Being charged with a class A misdemeanor
• Receiving a fine as high as $4,000
• Receiving a jail sentence of no longer than one year

A sale to an intoxicated customer may result in some or all of the following:

• Being charged with a misdemeanor
• Receiving a fine between $100 and $500
• Receiving a jail sentence of no longer than one year

A retailer who sells alcohol to a minor or someone who is inebriated will also receive administrative penalties that include a fine and the possibility of losing their sales permit.

The Manager’s Awareness Program

The two-hour Manager’s Awareness Program was designed to instruct managers on how to teach their employees to promote responsible alcohol sales. For example, managers learn about the laws related to serving alcohol to minors and intoxicated adults. They find out how they can be found liable for the injuries that these people cause once they have left the retail establishment. They also discover how to determine when an ID is fake or altered.

The Responsibilities of a Manger

A manager has many responsibilities, and the Manager’s Awareness Program illuminates each one so that retailers that sell alcohol can remain on the right side of the law. For example, managers are required to do the following:

• Ensure that employees are following the rules and regulations
• Provide continuous education for servers about responsible alcohol sales
• Create responsible policies and procedures for the service of alcoholic beverages
• Teach employees how to intervene with inebriated customers
• Assure employees that if they refuse to sell alcohol to a patron, they will never be disciplined for this action
• Ensure that everyone knows the rules for checking IDs

After attending the Manager’s Awareness Program, each individual manager will be able to create policies and guidelines for their businesses that will fit their specific needs.

Restaurant owners can be assured of increasing their gross profits margins when they become licensed to sell liquor. Nightclub and Bar Magazine conducted a survey in Chicago, and the researchers learned that alcoholic drinks amounted to 14.4 percent of bar and restaurant sales. If you do not have a Texas beer license or other state required liquor licenses, you may want to start the process of obtaining them through a Texas license services company to increase the profitability of your establishment.

The Gross Profits Margin

You can discover how much money you are earning from liquor sales by determining the product’s gross profits margin. The gross margin is a highly useful figure for business owners because it tells them how much profit they are earning from each particular product.

Cost of Goods and Net Sales

Learning the gross margin for liquor sales is simple. You will need to know how much it will cost to obtain the beverages you plan to sell. This figure is called the “cost of goods.” You also need to calculate “net sales.” You arrive at this figure by tallying how much your patrons spend on their beverages. If you offer any discounts, subtract this amount from prices paid, and you will have the net sales amount.

Calculating the Gross Margin

After you have the numbers described above, you can determine the gross margin. Take net sales and subtract the cost of goods. Then, you can convert the whole number into a percentage by dividing it by net sales.

An Example

With the purchase of one keg of beer for about $100, you have enough beer to offer patrons 165 12-ounce servings or 124 16-ounce servings. At $4 a glass, the amount paid for beverages will be between $490 and $660. After using the formulas described above, you will find that the profit margin is equal to 500 percent.

Increased Competition

Although liquor sales have offered bar and restaurant owners large profits in the past, industry experts are expecting these profits to slow down in the next couple of years. More people are expected to purchase their alcoholic beverages from bars and restaurants, but researchers from IBISWorld believe that this increased competition is going to decrease each individual establishment’s profit margin.

Increasing Your Gross Profits Margin

You can increase your ability to realize a higher gross profits margin for liquor sales by investing in mobile point-of-sale (POS) systems. POS systems serve two purposes. They make it easier for your servers to sell the product, and they store data you need to calculate your gross profits margin.

Servers Remain at the Table

People often want to know how POS systems allow servers to increase liquor sales. Because servers can remain at the tables at the same time that they place an order, servers can continue to engage with the customers and sell more of the product.

Detailed Information Is Collected

A POS system tells you very detailed information that can help you stage your restaurant or bar more effectively. For example, with a POS system, you will be able to determine when people purchase more wine, beer or spirits throughout the day and plan accordingly.

You Know When Inventory Is Low

With a POS system, you will know in real time when your inventory is low. Then, you can re-order the product you need directly from the system. It can even figure waste loss percentages and waste loss variance so that you can manage loss.

Texas License Services

In order to obtain a Texas liquor license, you will need to meet the states qualifications. After being approved, you will be required to follow the state’s rules and regulations, and you will have to renew the license in the future. This does not have to be difficult because Texas license services can handle the entire process so you can focus on running your business.

Across the United States, alcoholic beverages represent a big, lucrative slice of the revenue pie for untold thousands of restaurant, bar, hotel and store owners. Total U.S. alcohol sales approach $100 billion per year, and restaurants with a Texas liquor license can earn up to 70 percent or more of their income from sales of beer, wine, spirits and mixed drinks.

In most of Texas, the story is much the same. On a per-capita basis, Texans do not drink quite as much as their counterparts in northern states like Wisconsin, but local consumption statistics are still pretty impressive. According to recently available data, the average Texan drinks nearly 25 gallons of beer and more than one gallon of 80-proof liquor – the equivalent of nearly 100 shots or mixed drinks – per year. Wine continues to be a popular choice for a wide swathe of the drinking population as well.

A Closer Look at the Geography of Alcohol Sales in Texas

The Texas Alcoholic Beverage Commission keeps close track of where and how alcohol is sold across the state. Unsurprisingly, Texas’s biggest counties – Harris, Travis, Dallas, Tarrant and Bexar – accounted for a huge share of the state’s alcohol revenue. It helps that these places boast stadiums, universities, entertainment venues and other traditional draws for merry-making tourists and locals who look forward to a night out on the town. On a per-capita basis, Austin and the rest of Travis County – home of the University of Texas and the undisputed live-music capital of the state – do better than any other part of Texas.

That said, retailers, restaurateurs and bar owners without easy access to entertainment venues or student populations can easily leverage a Texas beer license to boost their bottom lines. In rural and suburban areas, establishments that serve alcoholic beverages on-premises persist at far lower densities than in established urban centers with robust nightlife cultures. This creates opportunities for retailers who sell bottled alcoholic beverages for off-premises consumption as well as restaurant and bar owners who have yet to tap into this lucrative slice of the market.

Consumption Habits Throughout the Year

Even in areas far from sporting venues or nightlife districts, both off-license retailers and on-premises licensees that take advantage of Texas license services can benefit from special events and holidays that are traditionally associated with alcohol consumption. For instance, fall weekends find collegiate and professional football fans connecting with their favorite teams over alcoholic beverages. Some holidays, including Cinco de Mayo and the Fourth of July, are closely associated with the consumption of specific beverage brands. Others, including Thanksgiving and Christmas, are noted for the consumption of a wide variety of alcoholic beverages. During the holiday season, consumers are often willing to pay a premium for high-end brands of wine, spirits and even beer.

The fact that specific types of alcohol are associated with specific times of year is a powerful argument for alcohol sales at restaurants, retail outlets and other venues. During the warm months, savvy operators draw buyers’ attention to refreshing, often cold beverages like light beer, white wine and wine coolers. During the cool months, red wines, spirits and dark beers might be emphasized. The holiday season brings a range of specialty drinks, including eggnog and spiced beers.

A Recession-Proof Business

Although Texas’s economy has weathered the recent turmoil better than most, local business owners always have to worry about unexpected shocks or slowdowns. Fortunately, alcoholic beverages are a recession-proof source of revenue for thousands of retailers, bar owners, hoteliers and restaurateurs across the state. For many reasons, sales of alcohol remain steady or even increase during periods of economic weakness. Due to their ability to offer a lower cost per drink, owners of liquor stores and other off-license sellers do particularly well during soft periods.

Overall, there are several clear revenue benefits of selling alcoholic beverages in Texas. From small-town restaurant owners to big-city event promoters, the state’s business owners are taking advantage.

Restaurants, bars and other retail businesses that serve or sell alcoholic beverages in the state of Texas are required to adhere to the regulations and guidelines set forth by the Texas Alcoholic Beverage Commission (TABC). These rules are intended to protect the welfare of customers and to ensure improved public safety for all residents. Companies that require a Texas liquor license to conduct their business operations must maintain compliance with all state regulations regarding the distribution and sale of alcohol to adults and to minors. Understanding the applicable rules and recommended best practices can ensure that dining and drinking establishments remain in compliance with these regulations and can obtain/retain their Texas alcoholic beverage license.

Responsible Practices

Texas bartenders and wait staff are required to maintain responsible practices and to exercise good judgment when serving alcohol to their customers:

• Serving alcoholic beverages to minors is strictly prohibited and can result in a one-year jail term, a $4,000 fine or both. When the age of the customer is in question, servers and bartenders are required to obtain positive verification that the individual is over 21 years of age before he or she is served alcoholic beverages. Training programs are available to help wait staff identify likely underage drinkers and to spot the signs of alcohol use in patrons of the drinking establishment. Promotional activities and campaigns should be carefully constructed to avoid targeting underage individuals.
• Marketing campaigns designed to promote overindulgence in alcoholic beverages may also be violations of TABC regulations. Specifically, campaigns that promote irresponsible drinking practices or that encourage drinking to the point of intoxication are prohibited. These include two-for-one promotions, coupons and incentives for purchasing alcohol but do not include reduced prices and discounts on single drinks or individual containers of alcoholic beverages. Texas law holds bars, taverns and other retail establishments responsible for alcohol consumption that occurs on their premises.
• Bartenders and servers are required to monitor the alcohol consumption of their customers and to take steps to cut off patrons who have overindulged or who may overindulge if allowed to continue drinking. Similarly, customers are limited to two or fewer drinks at any given time. Groups may be served pitchers, bottles or larger containers of alcoholic beverages to share. Servers must exercise care, however, to ensure that guests do not consume too much in these situations. Additionally, liquor served to customers in open containers cannot be saved for resale or given to customers to take home; it must instead be destroyed by the retail establishment.
• Retailers, servers and bartenders are subject to charges of criminal negligence if they knowingly serve alcoholic beverages to individuals who are classed as insane or as habitual drunkards. First offenses are classed as misdemeanors and are subject to fines of between $100 and $500 and jail time of one year or less. Repeated offenses can result in fines of up to $1,000 and as much as one year in jail.
• The display of lewd, immoral or indecent pictures on cards, calendars, posters and other printed materials is prohibited in establishments that currently hold or are applying for a Texas beer license.
• Falsifying a sworn application for a Texas liquor license is punishable by prison terms of two to 10 years.

The TABC offers a great deal of informational material for retail establishments interested in applying for licensing to serve alcoholic beverages in Texas. By familiarizing themselves with the regulations and provisions of Texas liquor laws, owners of these retail companies can significantly increase their chances of success in obtaining the necessary permits and licenses to carry out their business plans.

Restaurant managers, bar owners and retail outlets can often benefit by seeking the assistance of a professional and experienced firm in navigating the application process and obtaining a Texas alcoholic beverage license. By working with these experts, retailers can avoid unexpected obstacles and can achieve their goals more quickly and effectively in the current regulatory environment.

After years of going to bars, has the idea of opening your own crossed your mind? It can be an exciting thought, combining a love of bars with a desire to run a business and feeling that sense of pride that comes with owning a bar. However, those who do open drinking establishments should make some important decisions first.

The obvious first one is deciding whether you are the right type of person to own a bar. The people who have the greatest success at bar ownership usually have skills in both the social and business aspects of running a bar. The social part is essential due to the type of business being operated; it is important to be able to socially interact with both customers and employees. The business piece is essential as the place needs to pay for itself and earn however much money would allow you to live comfortably.

Your next step should be determining what goes into getting a liquor license in your area. These requirements can vary significantly from state to state and even from block to block in some cities. Prospective bar owners in Houston will be researching Texas license services to get the type liquor license they need. You may only need a Texas beer license if this is the only kind of alcoholic beverage you will be serving. Bar owners also need to obtain liability insurance that protects them from any actions their customers may make after drinking at their establishments.

Another important step in the process is determining what the personality of your bar will be. This is essential as the buzz and word-of-mouth advertising that your place receives will likely be more important than the quality of your service, your selection of drinks or your prices. The bar’s feel will also play a dramatic role in determining the clientele that it will attract.

Some of the basic personality options available include opening a neighborhood bar or pub – a home away from home for your local customers, a sports bar where people come to watch the big game on your large-screen televisions or a brewpub, a place where your customers can taste the beer that has been brewed on the premises. One thing to consider about opening a brewpub is acquiring a Texas liquor license – or a liquor license for the state where your bar will be located.

A factor connected with these steps is determining where the bar will be. Money will likely play a role as you will the need to determine what location fits into your budget. The locale can have a significant role in determining the personality of the bar as one next to a university will likely have a completely different feel to it than a drinking establishment situated in the cosmopolitan area of a major city. You also need to decide if you will build a bar or purchase one that already exists.

Another important step in the process is deciding on the name of your drinking establishment. You should consider your personality and the fact that this will be the most obvious form of advertising that your bar will ever have. When making this decision, consider what thoughts will cross the mind of somebody hearing the name for the first time.

You should also determine how important food will be to your establishment. This will likely be more important if you are going to run a sports bar as fans look to have tasty hamburgers, pizza and appetizers in addition to the drinks that you are serving. However, make sure that the focus of your place remains on your drinks as it is more cost effective to serve drinks instead of food as it is cheaper to make a drink. If you want to focus on food, you should open a restaurant instead.

In the months and days leading up to your bar opening to the public, you should take advantage of this time period and build anticipation among those passing by the building. This could be done with a “Grand Opening on Feb. 3” sign, or you could visibly count down the days until your place opens. Another idea would be to take out an advertisement in the local newspaper and announce the grand opening.

From a financial standpoint, make sure that you have not planned on making any money the first several months. Although you hope that you will be in the black from day one, I would not plan on it. Also, make sure that you set aside an emergency fund to take care of any unexpected snags that come up as there will surely be some. I would recommend adding about 25 percent to your original budget for this purpose.