So, you want to start selling liquor in California. You know you need a liquor license, but with over 80 types of liquor licenses in the state, you’re not sure where to start.
You know the consequences of getting liquor licensing wrong: fees, fines, and potential business closure. The stakes are high, but the processes and regulations around getting licensed to sell liquor in the Golden State can be complicated.
If you don’t know what a Type 47 liquor license is, how to apply for one, or if it’s even the correct license you need, this is the right post for you.
First, we’ll cover the basics of a Type 47 liquor license. Then, we’ll talk through the other common liquor licenses offered in California, giving you all the information you need to get the proper licensing for your store.
What Is a Type 47 Liquor License?
A Type 47 liquor license, also known as an "on-sale general for eating place license,” is a permit issued by the California Department of Alcoholic Beverage Control (ABC). This license allows a business to sell beer, wine, and distilled spirits for consumption on the premises where they are sold. It's typically issued to restaurants, bars, and nightclubs, but may also apply to stores that hold tastings and events, depending on your specific situation.
Key features of Type 47 liquor licenses include:
- On-site consumption: The license allows for the sale of alcoholic beverages for consumption within the licensed establishment only. Off-site sales are not permitted under this license.
- Incidental alcohol sales: Alcohol sales must be incidental to food service. This means that the primary business should be food sales, not alcohol sales.
- Full liquor service: Unlike some other license types, a Type 47 permit allows for the sale of beer, wine, and distilled spirits, giving businesses the flexibility to offer a full bar menu.
- Food service requirement: The establishment must serve meals during normal hours, maintain suitable kitchen facilities, and offer a menu with a variety of meals, not just snacks or appetizers.
- Minors allowed: Unlike some bar-specific licenses, a Type 47 license allows minors on the premises, making it suitable for family-friendly restaurants.
- Non-transferable: The license is not transferable from one location to another. If you move your business, you'll need to apply for a new license.
Ready to apply for your Type 47 license? The process can be complex, but don't worry — we'll break it down step by step.
Related Read: Before You Open A Liquor Store, Consider These 6 Things First
Type 47 License Application Steps
1. Determine Eligibility
First things first, make sure you meet the basic requirements. It's important to thoroughly assess your business plan and facilities before proceeding. Do you have kitchen facilities capable of supporting a restaurant-first business model? Can you maintain a menu offering a variety of meals? If yes, you're off to a good start. Consider consulting with a legal expert or industry consultant to ensure you fully meet all eligibility criteria for a Type 47 license.
2. Obtain Local Approval
Before the ABC will even look at your application, you need to get the green light from your local city or county planning department. This process might involve securing a conditional use permit or other zoning clearances. Local approval can be a time-consuming process, so start early. You might also have to present detailed plans for your establishment and potentially attend local planning meetings to address any community concerns.
3. Secure a Seller's Permit
You'll need to apply for a seller's permit from the California Department of Tax and Fee Administration (CDTFA). This permit is required for businesses selling or leasing tangible personal property in California. In most cases, you can complete the application process for a seller's permit online. Be prepared to provide information about your business structure, estimated sales, and suppliers.
4. Complete the ABC Application
Now it's time to tackle the ABC-211 application. This document requires personal information about the applicant(s), business details (structure, ownership, etc.), a detailed diagram of the premises, information about the property owner, and financial information. Consider having a legal professional review your application before submission to ensure all information is correct and complete.
5. Pay the Application Fee
Once you’ve completed the application, you must pay the application fee. Be prepared to shell out some cash here. The fee varies based on the license type and the population of your area, but it can range from several hundred to several thousand dollars. Make sure to budget for this expense in advance. You should also keep in mind that this fee is separate from the annual license fee you'll need to pay later if approved.
Related Read: How Much Does it Cost to Open a Liquor Store?
6. Provide Additional Documents
Along with your application, you'll need to submit fingerprints for background checks, proof of citizenship or legal residency, a copy of your seller's permit, and any necessary business licenses or permits. Ensure all documents are current and certified copies where required. Also consider creating a checklist to ensure you've included all required items.
7. Post a Public Notice
Once your application is accepted, you must post a public notice at your premises for 30 consecutive days. This lets the community know about your plans to sell alcohol and allows for any disputes or protests to be filed. To ensure compliance, make sure the notice is clearly visible from the exterior of your premises. It's also wise to document the posting with photos and keep a log of the dates it was displayed.
8. Attend a Public Hearing (If Required)
If the ABC receives protests against your application, you may need to attend a public hearing. This is your chance to address any concerns raised by the community. Prepare a detailed presentation highlighting your business plan, safety measures, and community benefits to strengthen your case during the hearing. Also consider community outreach efforts in advance to address potential concerns before they become formal protests.
9. Obtain Approval From the ABC
If all goes well, the ABC will issue a Conditional Letter of Approval. This outlines any conditions you need to meet before getting your license. Read this letter carefully and ensure you understand all conditions. If anything is unclear, seek clarification from the ABC or legal counsel before you move forward with your business.
Related Read: What Are Alcohol Control States? 4 Things You Need To Know
10. Pay the License Fee
Once you've met all conditions, it’s time for the final step: shelling out a bit more cash. You'll need to pay the annual license fee to receive your Type 47 liquor license. This fee is separate from the initial application fee and must be paid annually to maintain your license. Mark the renewal date on your calendar to ensure you don't miss future payments, which could jeopardize your license.
Related Read: How Much is a Liquor License? 3 Top Factors
Other California Liquor Licenses
While the Type 47 license is common for restaurants and bars, it's not the only option available. Depending on your business model, you might need a different type of license. Here are some other common California liquor licenses:
Type 20—off-sale beer and wine: This license is perfect for grocery stores or convenience stores that want to sell beer and wine for off-premise consumption. It allows for the sale of these beverages in their original, sealed containers, making it a popular choice for small markets and boutique wine shops.
Type 21—off-sale general: The Type 21 license allows the sale of beer, wine, and spirits for off-premise consumption, making it a perfect license for liquor stores. This license permits the widest range of alcohol sales for retail stores. It's the best option for businesses looking to offer a full selection of alcoholic beverages to their customers.
Type 41—On-sale beer and wine—eating place: This license is similar to Type 47, but is limited to beer and wine sales. It requires food service, making it suitable for cafes, bistros, and family restaurants looking to complement their menu with a selection of beers and wines.
Type 48—on-sale general—public premises: This one's for bars and nightclubs that don't serve meals. No minors are allowed on these premises. It allows for the sale and consumption of beer, wine, and spirits on-site. This license is often more challenging to obtain due to stricter regulations and potential community resistance.
Type 75—on-sale general—brewpub: For brewpubs producing their own beer and offering full liquor service. This unique license allows establishments to brew beer on-site, sell it for consumption on and off the premises, and also offer a full bar. It's ideal for craft breweries looking to expand their offerings beyond just beer.
Tools and Tips for Liquor License Compliance
Once you've obtained your liquor license, maintaining compliance is important. Here are some tools and tips to help you stay on the right side of the law:
Invest in the Right Point of Sale (POS) System
A good POS system can be invaluable for maintaining compliance. Look for features like:
- Age verification prompts: These reminders ensure staff consistently check IDs, reducing the risk of selling to minors.
- Inventory tracking: Accurate inventory management helps prevent over-serving and aids in identifying any discrepancies or potential theft.
- Sales reporting: Detailed reports allow you to monitor alcohol sales patterns and ensure they remain incidental to food sales as required.
- Employee management and access controls: These features help you monitor staff activity and restrict access to sensitive functions, enhancing accountability.
POS Systems for Bars and Liquor Stores
Let’s now explore some of the best POS systems for bars and liquor stores.
Bottle POS: Best for liquor stores
Bottle POS is a cloud-based point of sale solution designed specifically for liquor stores. It simplifies sales tracking and inventory management, helping store owners save time by reducing manual administrative tasks. Our system focuses on essential features that make a real difference in liquor store operations, ensuring the software remains smart and simple to use.
Key Features:
- Automated invoicing: Eliminates manual labor in updating inventory
- Auto-ranking system: Uses AI to identify bestsellers and slow-moving products
- Centralized database: Includes built-in liquor information for easier setup and management
- User-friendly interface: Simple design for quick employee training and efficient transactions
Pricing: Get the price for your customized solution using our transparent build and price tool.
Toast: Best for restaurants and bars
Toast is a management platform designed to help restaurants and bars streamline their operations. It offers point of sale systems with features like age verification prompts, payment processing, online ordering, and inventory management. These integrated functions enhance efficiency, ensure compliance with regulations, and improve the customer experience.
Key Features:
- Tableside service: Handheld devices for convenient tableside ordering and payments
- Online ordering: Commission-free ordering channels for takeout and delivery
- Analytics & reporting: Access to key reports and sales performance data from anywhere
- Menu management: Real-time menu updates and item quantity tracking
Pricing: Starts at $69/month plus hardware costs.
Square: Best for breweries
Square is an all-in-one POS system that offers comprehensive features, including inventory management, vendor management, and customer experience enhancements. These features are perfect for breweries looking to optimize their operations, ensure regulatory compliance, and enhance the overall customer experience.
Key Features:
- Bar tab management: Integrated POS with pre-authorized tabs for quick checkouts
- Efficient order flow: Customized kitchen display system for fast and accurate drink preparation
- Detailed reporting: Analytics to identify popular drinks and optimize your menu
- Customer engagement: Customizable loyalty programs and automated marketing tools to build and retain customer base
Pricing: Starts at a free plan, and the premium plan is $165 per month.
Beyond the Type 47 Liquor License: Managing Your Business
You’ve got the essential information about Type 47 liquor licenses and the application process. However, if you run a liquor store or beer and wine shop, you'll need to explore the other licensing options mentioned in this article.
Obtaining your liquor license is just the first step in your journey as a business owner. To manage your liquor store well, you need the right tools and technology in place. The most crucial tool in your arsenal is a robust point of sale system.
The right POS system can streamline your operations, help maintain compliance, and provide valuable insights into your business. To see how the right POS can transform your business, schedule a demo of Bottle POS today.
