Which TABC Permit Do You Need to Sell Alcohol in Your Restaurant?

Opening a restaurant in Texas that serves alcohol requires more than a great menu and a solid location. Before you can pour your first glass of wine or mix your first cocktail, you need the correct permit from the Texas Alcoholic Beverage Commission. The permit you need depends on what you want to serve, how you want to serve it, and where your restaurant is located.

Choosing the wrong permit wastes time and money. Applying for a permit that is not available at your location due to local option status can delay your opening by months. Operating under a permit that does not authorize what you are actually selling can result in violations, fines, and potential permit cancellation.

This guide explains the permit options available to Texas restaurants, the key differences between them, and how to determine which one fits your business model.

Quick Reference: Which Permit Do You Need?

Before diving into details, here is the short answer:

Want to serve cocktails, liquor, or spirits?
→ You need a Mixed Beverage Permit (MB) plus a Food and Beverage Certificate (FB)

Only serving beer and wine?
→ You need a Wine and Malt Beverage Retailer’s Permit (BG)

Want to serve past midnight?
→ Add a Late Hours Certificate (LH) to either permit above

Not sure what is available at your location?
→ Check the TABC wet/dry map first: tabc.texas.gov/public-safety-local-government/local-option-elections/wet-dry-map/

The sections below explain each option in detail.

The Core Question: Beer and Wine Only, or Full Bar?

The most fundamental decision is whether your restaurant will serve only beer and wine, or whether you want to offer distilled spirits as well. This single choice determines which category of permits applies to your business.

If you plan to serve cocktails, shots, or any drinks containing distilled spirits, you need a Mixed Beverage Permit. If you plan to serve only beer and wine without any distilled spirits, you may qualify for a Wine and Malt Beverage Retailer’s Permit, which has lower fees and different requirements.

Many restaurant owners initially consider a beer-and-wine-only model to reduce costs and simplify permitting. Others know from the start that their concept requires a full bar. Both approaches are viable, but the permit requirements differ significantly.

Mixed Beverage Permit for Restaurants

The Mixed Beverage Permit, designated as permit type “MB” in TABC records, authorizes the sale of distilled spirits, wine, and malt beverages for on-premises consumption. This is the permit category that applies to restaurants wanting to offer a full bar program.

Texas Alcoholic Beverage Code Chapter 28 governs this permit type. The permit authorizes you to sell cocktails, wine, beer, shots, and any other alcoholic beverage for consumption at your restaurant. Customers cannot take these beverages off-premises in open containers under standard circumstances, though exceptions exist for certain situations discussed below.

The Food and Beverage Certificate Requirement

Here is where restaurant permitting diverges from bar permitting. Most restaurants seeking a Mixed Beverage Permit will also need a Food and Beverage Certificate, designated as permit type “FB.”

Texas Alcoholic Beverage Code § 28.18 establishes this certificate. The TABC requires either that your establishment derive at least 50 percent of gross receipts from food and non-alcoholic beverage sales, or that alcoholic beverage sales not exceed 60 percent of gross receipts.

For a genuine restaurant where food is the primary focus, meeting this requirement should be straightforward. The certificate matters for several reasons beyond basic compliance.

Location eligibility. Some areas in Texas that prohibit general mixed beverage sales through local option elections still allow sales by Food and Beverage Certificate holders. Texas Alcoholic Beverage Code § 251.80 addresses this situation. If your desired location falls into one of these areas, having the Food and Beverage Certificate may be the only way to serve distilled spirits there.

Alcohol to-go sales. Texas Alcoholic Beverage Code § 28.1001 authorizes Mixed Beverage Permit holders with a Food and Beverage Certificate to sell beer, wine, or mixed beverages for off-premises consumption when purchased with food. Specific container and sealing requirements apply. This provision, which became permanent after initially being adopted during the pandemic period, allows restaurants to offer alcohol with takeout and delivery orders under defined conditions.

Perception and positioning. The Food and Beverage Certificate signals that your establishment is primarily a restaurant rather than a bar. This distinction can matter for zoning purposes, neighborhood relations, and how local authorities view your business.

Mixed Beverage Permit Fees

As of the most recent published TABC fee schedule, the two-year state fee for a Mixed Beverage Permit is $5,287.50 for an original application and $2,643.75 for renewal. The Food and Beverage Certificate adds $1,050.

Cities and counties may assess additional local fees up to one-half of the state fee amount. However, Texas Alcoholic Beverage Code § 11.38(e) delays local fee assessment for Mixed Beverage Permit holders until three years after the permit is first issued.

Verify current fee amounts at tabc.texas.gov before budgeting, as fees are subject to change.

Wine and Malt Beverage Retailer’s Permit for Restaurants

If your restaurant concept does not require distilled spirits, the Wine and Malt Beverage Retailer’s Permit offers a less expensive alternative. This permit, designated as type “BG,” is governed by Texas Alcoholic Beverage Code Chapter 26.

This permit authorizes the sale of wine and malt beverages (beer) for both on-premises and off-premises consumption. You can serve beer and wine with meals, and customers can purchase sealed containers to take home.

What You Cannot Serve Under This Permit

The Wine and Malt Beverage Retailer’s Permit does not authorize the sale of distilled spirits in any form. This means:

• No cocktails (margaritas, martinis, mojitos, old fashioneds)
• No shots (tequila, whiskey, vodka)
• No liqueurs (amaretto, Kahlúa, Baileys)
• No spirits-based after-dinner drinks

If a customer asks for any spirits-based drink, you cannot serve it under this permit.

Some restaurant owners underestimate how limiting this can be. Wine and beer cover a wide range of options, but many popular drinks and customer expectations involve spirits. Consider your target market and menu concept carefully before committing to a beer-and-wine-only model.

Wine and Malt Beverage Retailer’s Permit Fees

The two-year state fee for a Wine and Malt Beverage Retailer’s Permit is $1,837.50 as of the most recent published fee schedule. This is substantially lower than the Mixed Beverage Permit.

Local fees may apply immediately upon permit issuance, unlike the three-year delay that applies to Mixed Beverage Permits.

Side-by-Side Comparison

The following table summarizes the key differences between the two primary permit paths for restaurants:

Local Option Status: Check This First

Before you invest time researching permit details, verify that the permit you want is actually available at your intended location. This step is critical and often overlooked.

Texas has a local option system under Texas Alcoholic Beverage Code Chapter 251 that allows counties, cities, and justice of the peace precincts to control what types of alcohol sales are permitted within their boundaries.

What Local Option Status Means for Your Restaurant

Local option status varies dramatically across Texas:

The TABC maintains an interactive wet/dry map at tabc.texas.gov/public-safety-local-government/local-option-elections/wet-dry-map/. Check this resource before signing a lease or purchasing property. Discovering after the fact that your location cannot support your intended permit type is an expensive mistake.

The Food and Beverage Certificate Workaround

If your desired location is in an area that restricts mixed beverage sales but allows Food and Beverage Certificate holders, this certificate becomes essential rather than optional. Texas Alcoholic Beverage Code § 251.80 addresses these situations.

In these areas, you can serve spirits only if your establishment qualifies as a restaurant under the FB certificate requirements. This is one reason the Food and Beverage Certificate matters even beyond its direct compliance function.

Late Hours Certificate: Extended Service Hours

Regardless of which base permit you choose, you may want to add a Late Hours Certificate if you plan to serve alcohol past standard cutoff times. This certificate, designated as type “LH,” extends your permitted selling hours in areas where local option elections have authorized late-hour sales.

Standard Hours vs. Late Hours

Texas Alcoholic Beverage Code § 105.03 establishes the hours during which alcoholic beverages may be sold:

The Late Hours Certificate adds $1,050 to your permit costs based on the most recent published fee schedule. Availability depends on local option status in your area.

Do You Need Late Hours?

For restaurants with a dinner-focused concept that closes by 10:00 or 11:00 p.m., the Late Hours Certificate is unnecessary. For establishments with a late-night dining component, bar-forward restaurant concepts, or locations in entertainment districts, it may be essential to your business model.

The Application Process: What to Expect

Once you have determined which permit fits your restaurant, the application process involves several steps. The TABC’s online Alcohol Industry Management System at aims.tabc.texas.gov handles most applications.

Key Requirements

Timeline Expectations

Processing time is approximately 30 to 35 days for complete applications without deficiencies, according to TABC guidance. However, the 60-day sign requirement, if applicable, runs independently and often determines the actual timeline.

Realistic planning: If your location requires the 60-day sign, expect the entire process to take 60 to 90 days minimum. Post the sign as soon as you have control of the location to run the clock while gathering other documents.

Ongoing Compliance: What Changes Based on Your Permit

The permit you choose affects your ongoing compliance obligations beyond initial approval.

All Permit Holders Must

• Maintain invoices for all alcohol on premises
• Allow TABC inspections at any time
• Comply with hours of operation restrictions
• Report certain incidents to the TABC
• Renew every two years before expiration

Food and Beverage Certificate Holders Must Also

• Maintain daily sales summaries showing food vs. alcohol sales
• Ensure alcohol sales do not exceed 60 percent of gross receipts
• Be prepared to demonstrate compliance during inspections

Employee Requirements

Employees who sell or serve alcohol must be at least 18 years old under Texas Alcoholic Beverage Code § 106.09. While seller/server certification is not universally required by state law, it provides employer protections under § 106.14 when certified employees are deceived by minors using false identification.

Decision Framework: Five Questions to Answer

Before choosing your permit, work through these questions:

1. Does your concept require spirits?
Think about your menu, your target customer, and your competitive positioning. If cocktails are central to your concept, you need the Mixed Beverage Permit. If beer and wine are sufficient, you can save money with the BG permit.

2. What is the local option status at your location?
Check the wet/dry map before making any commitments. Your concept may need to adjust based on what permits are actually available.

3. Can you meet the Food and Beverage Certificate requirements?
If you need an MB permit and your location requires an FB certificate (or you want the to-go sales authority), confirm that your business model will generate at least 50 percent of revenue from food, or keep alcohol under 60 percent of receipts.

4. Do you need late-night service hours?
If your concept involves serving past midnight on weekdays or past 1:00 a.m. on Saturdays, you need the Late Hours Certificate in an area that has authorized late-hour sales.

5. Does your budget support your permit choice?
The difference between a BG permit ($1,837.50) and an MB+FB combination ($6,337.50) is significant. Factor in the three-year delay on local fees for MB permits when comparing total costs.

Common Mistakes to Avoid

Assuming your location is wet. Always verify local option status before signing a lease. “It looks like a busy restaurant area” does not mean mixed beverage permits are available.

Underestimating spirits demand. Some operators choose the cheaper BG permit and later regret not being able to serve cocktails. Upgrading requires a new application, not an amendment.

Forgetting about location restrictions. Distance requirements from schools, churches, and other protected sites can disqualify otherwise suitable locations. Confirm with your city and county.

Ignoring the Food and Beverage Certificate. In many situations, this certificate is not optional. It may be required for location eligibility, desired for to-go sales, or necessary for neighborhood approval.

Next Steps

1. Check local option status at your intended location using the TABC wet/dry map
2. Contact your city and county to confirm permit availability and distance compliance
3. Decide on your permit combination based on your concept and location
4. Post the 60-day sign as soon as you have control of the location (if required)
5. Create an AIMS account and begin your application at aims.tabc.texas.gov

The permitting process requires attention to detail and patience, but thousands of Texas restaurants successfully obtain alcohol permits each year. Starting with the correct permit type for your concept avoids delays and positions your restaurant for compliant operation from day one.

This article provides general information about TABC restaurant permits for educational purposes. It does not constitute legal advice, and no attorney-client relationship is created by reading this content. Permit requirements, fees, and local option status vary by location and may change. Verify current requirements with the TABC at tabc.texas.gov or consult a qualified attorney for guidance specific to your situation.