What Is a Mixed Beverage Permit, and Which Texas Businesses Are Required to Hold One?
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Texas offers many alcohol permits, and they are not interchangeable. The Mixed Beverage Permit (MB) is the one that authorizes full-bar service, and confusing it with a beer-and-wine permit is a common and costly mistake. Knowing what the MB covers, and which businesses need it, is the starting point for any concept that plans to serve liquor by the drink.
What the MB authorizes
The Mixed Beverage Permit, governed by Chapter 28 of the Alcoholic Beverage Code, authorizes the on-premise sale of distilled spirits, wine, and malt beverages for consumption at the licensed location. The defining feature is spirits: the MB is what allows a business to serve liquor by the drink, not just beer and wine. Through the 2021 permit consolidation, the MB also carries certain related authorities useful to on-premise operators, such as the ability to hold events at temporary locations.
This is the key distinction to keep straight. Not every alcohol permit covers liquor. A beer-and-wine retail permit does not authorize cocktails or other spirits. The MB is the baseline for that fuller scope of service.
Which businesses need it
Any business that intends to serve distilled spirits by the drink for on-premise consumption generally needs an MB. In practice, that includes:
- Restaurants that want a full bar rather than beer and wine only
- Bars and lounges serving cocktails and spirits
- Hotels with bar service
- Clubs and similar venues serving liquor on site
The trigger is the business model, specifically whether spirits will be poured for consumption at the location. A concept that will only ever serve beer and wine is looking at a different permit; a concept that will serve spirits is looking at the MB.
Matching the permit to the plan
Whether spirits will be poured on premise is the question that decides a restaurateur’s permit. If the business will pour liquor by the drink, the MB is the baseline permit, often paired with other authorizations depending on the model and location. If it will not, a beer-and-wine permit may be the better fit.
How the MB stacks up against the Wine and Malt Beverage Retailer’s Permit, and how a restaurant’s alcohol-to-food sales mix shapes the choice, are taken up separately.
This article is for general informational and educational purposes only and is not legal advice. Texas alcoholic beverage law changes, and how it applies depends on the specific facts of each situation and the local jurisdiction involved. Reading this article does not create an attorney-client relationship. For guidance on a particular matter, consult a licensed Texas attorney and confirm current requirements with the Texas Alcoholic Beverage Commission and the relevant city or county.