Opening a bar in Texas is an excellent way to start a company, especially for people who have previous experience with one. Be aware that the rules and regulations in your region or where you want to open a bar in Texas may differ. To start a bar in Texas, you’ll need to know the facts.
To start a bar in Texas, you must first get a business license.
According to Texas law, all businesses must get a business tax certificate and pay all relevant company taxes.
A seller’s permit is required, and a seller’s permit or resale certificate is required by Texas law when selling any physical object.
Apply for a federal tax ID number from the Internal Revenue Service and a state-issued tax ID number from the Texas government. You can’t run a bar by yourself, and you’ll need people to get the job done effectively. You must also pay Texas employment taxes (EIN) using your Texas Employer Identification Number.
Get the necessary permissions and licenses for your industry. Texas regulations may require you to obtain operating permission, a health and safety permit, a hard alcohol permit, a beer and wine permit, and other applicable permits, depending on your area. Your bar may fall into one of many classes, and various licenses and permits fall into different classifications. The sort of service you provide will determine the licenses and permits you require, according to the Texas Alcoholic Beverage Code.
Your bar may provide beverages, food, or a combination of the two. A Mixed Beverage Permit (MP) is required if you want to offer mixed drinks for consumption on the premises of your bar. If your bar is primarily classed as a restaurant that offers mixed beverages, you’ll need to get a Mixed Beverage Restaurant Permit (along with a Food and Beverage Certificate).
In addition, any applicable fees must be paid. On the initial application, a two-year charge for a mixed beverage permit will cost $6,512. Consult the Texas Alcoholic Beverage Code for a comprehensive list of permits, licenses, and fees your bar will need to get and pay.
For instance, opening a bar in Texas necessitates a thorough study when it comes to market and location. Depending on the budget, an appropriate location would have to be rented or built. When it comes to pubs and entertainment venues, an appropriate theme must also be considered since a distinctive theme will almost always assure success.
Some states, such as Texas, present additional hurdles to entrepreneurs. To be fortunate, you must plan ahead of time and thoroughly understand the local market.
Do a market analysis.
Do some market research before you draft a business plan and follow the legal processes to operate your bar. In 2017, there were 62,602 bars, nightclubs, and taverns in the United States.
A thorough market study might assist you in determining who your rivals are. You’ll also learn about the size and value of the target audience’s market, industry trends, local legislation, and entry hurdles. Use reliable research sources such as state and local commerce websites, the United States Bureau of Labor Statistics, industry studies, etc.
Choose a bar-style
There are some bars, each with its own set of criteria. Choose between opening a high-end bar, a sports bar, a college bar, a specialized bar, or a pub. Live music venues are popular with Millennials, whereas nostalgia bars are popular with older people. Tourists and business people favour high-concept pubs known for their grandeur and serving only the best drinks.
Determine the sort of bar you wish to run. Stay away from trendy fashions that are here today and gone tomorrow by being original. Your bar should represent your vision while also catering to your target demographic. Consider one of the following bar ideas:
- a local hangout
- Bar with Sports
- Cocktail Lounge
- Wine Bar
When you’ve decided what kind of bar you want to operate, you can start thinking about the location, décor, and design that complement the environment you want to create. Your whole brand should be consistent and focused on giving your customers the greatest possible experience.
A list of the drinks and meals you’ll be providing should be included in your brand and idea. Don’t stop making these selections until the last minute; you’ll want to discover booze and food providers as soon as possible to open with a full inventory.
Reduce your menu to only a few brands. Will you solely serve local beer and wine, or will you have a larger selection? Consider including a few signature drinks on the menu alongside the popular classics if you’re offering cocktails.
You should also arrange your meal menu. Will you solely serve finger foods and appetizers, or will you also provide entire dinners? Keep in mind that the size of your kitchen will influence your selection. You’ll need a fully equipped kitchen if you’re providing full meals.
An alcohol license from the Texas Alcoholic Beverage Commission is required for any establishment selling alcoholic drinks in Texas (TABC). There are different sorts of licenses and permits available, so be sure you’re applying for the correct ones for your bar’s alcohol sales.
Liquor Liability Insurance
Texas Liquor liability insurance helps protect a business that sells, serves, or distributes alcohol. This type of business insurance can help cover claims of bodily injury or property damage that an intoxicated person causes after a company served them alcohol.
Food and Beverage Certificate
A Food and Beverage Certificate is required if you offer food in your bar (FB). The TABC will give you a certificate that will allow you to prepare and serve food at your restaurant.
Depending on where you want to open your bar in Texas, you’ll need different zoning permissions and restrictions. Make sure you’re aware of the local rules and regulations that apply to you, such as sales tax permits, certificates of occupancy, and zoning permits. You might be penalized if you don’t follow these rules.
It’s not as simple as plugging in your system to play music in your pub; you’ll need a license. Consider getting a “blanket” license from an ASCAP or BMI-affiliated performance rights organization. This permit will allow you to play music from various artists lawfully.
You’ll also need a separate license if you plan on presenting live music. Different licensing and permit requirements apply depending on your bar’s location in Texas.
The bartending business may be fiercely competitive. You may increase your chances of accomplishment by creating a clear strategy before you start the process of opening a bar in Texas. You’ll be prepared to take care of the other procedures required to manage a bar once you have a unique concept, a business strategy, and all of your legal needs.