When you own an establishment that sells or serves alcohol in the state of Texas, then you are likely familiar with the Texas Alcoholic Beverage Code (TABC). The TABC regulates how alcohol is sold and consumed in the great state of Texas. One such regulation involves the type of TABC license or permit that your business receives. Depending on the type of license that you receive, you will likely be regulated by how you sell or serve alcohol within your establishment. One of the biggest differences in license types is whether you are considered an on-premise or off-premise establishment. Below, we’ll explain the difference between these two distinctions.
What Does On-Premise Mean?
On-Premise refers to the fact that under this license or permit you are permitted to sell or serve alcohol that is consumed on your establishment’s premises. What does this mean exactly?
Well, in this case, premises refers to the location of your business. For example, if you own a restaurant with outdoor seating, then both the seating inside the building and the outdoor seating are considered on-premises.
Please note, that on-premises consumption comes with its own set of regulations regarding how much you can serve to any individual. You should always understand these regulations to their fullest as failure to comply with regulations may result in fines, revocations of your license, fines, and, in some cases, even jail time.
What Does Off-Premise Mean?
Off-Premise means that you are permitted, under your license or permit, to sell alcoholic beverages that are intended for consumption off the premises of your business. Examples of businesses that may fall under this include: liquor stores or grocery stores that sell alcoholic beverages.
Off-Premise establishments also have their own set of regulations around how they can sell alcoholic beverages to customers. This includes aspects such as hours and days of operation. As with on-premise establishments, it is your responsibility to fully understand the regulations surrounding your off-premise permit or license.
Whether you are have a permit or license that allows for on-premise consumption and sale, off-premise, or one that allows for both on-premise and off-premise sale or consumption, it is essential that you remain in compliance with all rules and regulations that are governed by the TABC. If you are unsure, or just want to ensure that you understand these regulations, it is always in your best interest to discuss your license and any questions you have with a lawyer who specializes in Texas liquor law.