How To Get A Liquor License In California
A Type 47 License
Here at Serving Alcohol Inc., we are asked lots of questions regarding the sale and service of alcohol. We are a nationwide provider of seller server certifications that allow bartenders and wait staff to sell and serve alcoholic beverages to customers on-premise and off-premise (bar and restaurants vs. convenience stores, gas stations, and liquor stores). We train tens of thousands of people annually, and questions always come up about alcohol certifications vs. bartender licenses vs. liquor licenses vs. mixology (the art of mixing drinks). We offer alcohol certification and bartending licenses. We have an introductory mixology course with our Behind The Bar Experience course if you want to learn the art of using a shaker or how to make a mean martini.
Owners and managers prefer to hire people who take their craft seriously to serve their patrons courteously while protecting them, the premises, and the community. Your employees' choice of words to customers helps control the business as they act on your and the community's behalf. Take the time to train your staff and quiz them on your posted house policy. Your staff’s control over their environment is the only thing that protects everyone else. Employee knowledge is the most essential aspect of preventative training.
On-Premise Versus Off-Premise
However, if you are looking to set up a bar or restaurant or currently own a food establishment and want to be able to serve and sell alcoholic beverages, then follow along. We will do our best to go through what you need and what you have to do.
First, what type of business do you have, and what are you attempting to do? Off-premise refers to stores that only sell alcohol to be consumed elsewhere, such as convenience stores, liquor stores, gas stations, and grocery stores. On-premise refers to serving alcohol to customers visiting your establishment.
In California, the terms ‘On-Sale’ and ‘Off-Sale’ are the same as the terms ‘On-Premise’ and ‘Off-Premise.’ Second, you must obtain the city's approval for the establishment to be set up and connected. The quicker you get the city and state approvals, the quicker you can begin doing business.
Why does it matter whether your customers drink at your establishment or buy alcohol to take with them? It matters a great deal. The type of alcohol permit is always given first at the state level and then the local city.
How to Get a Liquor License in California
In California, liquor laws, regulations, and ordinances are overseen by the California Department of Alcoholic Beverage Control. They are responsible for the enforcement of the laws, and they are the ones who will issue permits and licenses and perform evaluations. They have the authority to close down establishments that do not comply with state laws and regulations. Serving Alcohol Inc. had to submit and be certified by the California ABC, both English and Spanish versions, of our online California RBS Training programs. The California ABC (Alcoholic Beverage Control) provides oversight and the legal framework put in place by the California State Legislature.
When you go to the state’s
Responsible Beverage Service website, you will see that California ABC defines the types of liquor licenses and permits for on-sale and off-sale. Still, the permits must specify what type of alcoholic beverages you will be sold.
Another category in the state of California is those who produce alcohol. California is world-renowned for its
wineries, which require permits and licenses to operate.
California Liquor License
This article focuses on a Retail License, an 'On-Sale' Permit, or Type 47. During the permitting process, the state will ask you to specify the type of alcohol you sell, as the permit will determine what you can and cannot sell. In California, the first type of retail license we will discuss is the 'On-Sale General.' The on-sale general license will allow you to sell the three types of alcoholic beverages defined by the state of California: beer, wine, and distilled spirits (liquor).
Liquor License California Counties
The difficulty in obtaining a Type 47 license starts with the fact that in 1939 (and still in use today), the amount of on-sale general permits was limited to one license per every 2,000 residents in a given county. When deciding to go for a Type 47, you must know that at least 51% of your sales must be from food; the establishment “must be a bona fide eating place.” When applying for a Type 47, you may very well be denied in that county if the county has already reached the current limit.
How Much is a Liquor License in California
Assuming you move forward with a Type 47 license, there is an application fee due to the State of California. Here is a link for the types of fees and the corresponding permits.As you will notice, there are also fees involved in transfers and changing the type of permit you have to a different form. An initial application for a Type 47 permit costs $7,060 at this time. Depending on your county, there may be a lottery for Type 47 permits. In reality, you will likely have to buy an existing license from someone who owns a Type 47 and wants to sell, which will be more expensive since you're taking over an existing business.
How To Get A Liquor License In California
Beyond just buying a California liquor license, the state also places the following requirements on business owners:
- Escrow the license purchase from the seller.
Some brokers specialize in this transaction type and match buyers with sellers of Type 47 licenses. The need to hire someone who is a professional at opening establishments is the smart way to avoid unwanted conflict.
- Because you will be selling alcohol, a highly regulated drug with tremendous oversight, you will undergo a background check. This process will involve running your information through the FBI and the
California Department of Justice. If California ABC finds derogatory information, it may reject your application.
- Along with the background check, they will want to know your financial status to open and maintain this establishment.
- The California RBS will want a business plan.
- You also need to comply with local zoning laws and ordinances.
- You must publish a letter of intent, which means you advertise in the local newspaper and let the community know you are opening an establishment selling beer, wine, and liquor. Concerned parties may file an objection to your license, which may be denied because of the objection (e.g., too close to a school or church).
- Renew your fee.
California Liquor License Denial
If your application is denied, your application fee is gone. The California ABC does not refund your application fee. The same situation applies if you fail the background check. You need an attorney in the community to assist you if you need to be made aware of the process.
The whole process can take several months and should be carefully considered. Approvals are not just limited to the California ABC. You will also need approvals from the
City and the
local police department.
Training Involved for Liquor License in California
This license type is subject to Responsible Beverage Service (RBS) requirements and requires alcohol servers and managers of alcohol servers to have their RBS Certification.
California also has permits for various other types of alcohol, how they are sold, and the regulations and requirements to obtain these licenses. We will be providing upcoming articles on these types of permits. Our next article in the series will be about the brewpub license. This license allows for the sale of distilled spirits, but the catch is that you must brew 100 barrels of beer annually.
This Type 75 license does not have a limit such as a Type 47 (one location per every 2,000 residents in a given county), and that’s the reason it’s so appealing to those who realize they would otherwise have to buy a Type 47 from an existing owner on the open market. We will also be covering beer and wine permits in our upcoming series. The duty to care is the key to progress and a future.
Asking the city clerk for help to develop a proactive checklist is always a good start!