When selling or serving alcoholic beverages in the state of Texas, your business will have to follow specific regulations which go along with the specific TABC permit type that your business holds. In the case of a business selling alcoholic beverages for on-premises consumption, one of the most important regulations to understand is in regard to hours of operation. Below, we’ll break down what others your business can be open and when it can sell alcoholic beverages during those hours.

What Business Types Are On-Premises Retailers?

Any business that serves or sells alcoholic beverages with the purpose of customers consuming alcoholic beverages at the business’s location would be an on-premises retailer. So, these would include establishments such as bars, restaurants, night clubs, and other types of businesses. The types of permits that cover these kinds of businesses include the Wine and Malt Beverage Retailer’s Permit (BG), Mixed Beverage Permit (MB),  and the Retail Dealer’s On-Premise License (BE).

How Are Hours of Operation Regulated for On-Premises Consumption?

Hours of operation can vary depending on the specific business type. For example, a business which also serves food can hold longer hours when food and non-alcoholic beverages are sold, but must abide by alcoholic beverage sale hours for when alcohol is sold.

Hours of Operation

The hours of operation where alcoholic beverages can be sold for on-premises consumption are as follows:

  • Monday-Saturday alcohol can be sold between 7:00 AM and Midnight
  • On Sundays, alcohol can be sold between Midnight and 1:00 AM and between 10:00 AM/Noon and Midnight

The 10:00 AM-Noon Sunday exception only applies to alcohol beverages sold alongside food. Essentially, this covers a Sunday meal such as brunch.

Extended Hours

In several Texas counties, there is an exception to hours of operation under certain circumstances. Businesses can apply for a special permit, called a Late Hours Certificate, to allow the sale and service of alcoholic beverages from Midnight to 2:00 AM.

Hours of Consumption

When you own a business where on-premise consumption occurs, it’s essential to pay attention to not only what hours you can sell alcohol but also what hours alcohol can be consumed.

The rules regarding consumption of alcohol at TABC-licensed /permitted establishments only authorizes consumption to occur up to fifteen minutes outside of hours of sale. Which means if hours of sale end at 1AM, then patrons must have finished their drink by no later than 1:15 AM.

Ultimately, while hours of operation and consumption may seem confusing at first, they are actually fairly straight-forward. It is essential to follow these regulations at your business, to avoid revocation of your license or other penalties from the TABC.

Contact Ranger Licensing for your TABC licensing needs to ensure compliance with on-premises retailer hours of operation regulations.