TL;DR
Texas's three‑tier system separates alcohol manufacturers, distributors, and retailers, requiring bar owners to choose the right permits and follow hours‑of‑sale and advertising rules. Austin adds local zoning and certification requirements, making legal guidance essential for compliance.
Texas Alcohol Laws 101: A Guide for New Austin Bar & Restaurant Owners
If you're opening a bar or restaurant in Austin (or in any city/town throughout Austin), understanding Texas alcohol laws is just as crucial as crafting a stellar cocktail list. The Texas Alcoholic Beverage Code and local ordinances regulate everything from who can sell alcohol to how it must be advertised.
Violations can derail your business, so a working knowledge of the legal landscape is vital. This guide introduces the core concepts of Texas alcohol law, explains the three‑tier system and highlights rules specific to Austin and Travis County.
The Three‑Tier System Explained
Texas operates a three‑tier system separating manufacturers, distributors/wholesalers, and retailers. This structure prevents vertical integration and encourages competition.
Retailers purchase alcohol from licensed distributors and sell to consumers; they may not buy directly from manufacturers, nor can they accept gifts or free equipment from suppliers. Understanding your tier helps determine which licenses you need and what relationships are allowed.
Key Types of Alcohol Licenses in Texas
Mixed Beverage Permit (MB)
Authorizes bars and restaurants to sell distilled spirits, beer and wine for on‑premise consumption.
Mixed Beverage Permit with Food & Beverage Certificate (MB + FB)
Available to venues where more than 51% of revenue comes from food.
Wine and Beer Retailer's Permit (BG)
Allows sale of beer and wine for on‑premise consumption and to‑go sales (e.g., growlers).
Restaurant Wine & Beer Retailer's Permit (RB)
Similar to a BG permit but limited to restaurants and cafes.
Distiller's and Brewer's Permits
Manufacturers need separate permits and may sell limited amounts directly to consumers.
Who Can Sell and Serve Alcohol?
In Texas, individuals must be at least 18 to serve beer and wine and 21 to serve spirits. Seller‑server certification is not legally required but is widely recommended.
Hours of Sale and Service
On‑premise spirits sales are generally permitted Monday through Saturday from 7 a.m. to midnight; on Sundays from 10 a.m. to midnight with a Food & Beverage Certificate. Beer and wine sales in stores have separate hours, and local blue laws may impose additional restrictions.
Advertising and Promotional Restrictions
Key rules include no price signs visible from the street, no free drinks or two‑for‑one promotions, and restrictions on supplier inducements. Social‑media marketing must age‑gate content and avoid encouraging excessive drinking.
Local Licensing & Zoning in Austin
After submitting an application through AIMS, applicants must obtain city certification, including zoning approval and clerk signatures. Certain neighborhoods may impose conditional overlays limiting alcohol sales.
Special Considerations for Restaurants and Bars
F&B Certificates for establishments with more than 51% food revenue, age restrictions for employees, and rules regarding minors on premises are all important.
Get Help from Castroland Legal Before You Pour the First Drink
Launching a bar or restaurant in Austin means more than great food and drinks. It means navigating a maze of alcohol laws, permits, and local regulations. Work with Castroland Legal to ensure your business starts on solid legal ground and stays compliant every step of the way.