Choosing the right California liquor license depends on what type of business you operate, which alcoholic beverages you plan to sell, where customers will consume them, and whether your business serves food. A restaurant that wants to offer beer and wine needs a different license than a restaurant serving cocktails, while bars, liquor stores, grocery stores, hotels, breweries, wineries, and event operators may all require different licenses or permits.
The California Department of Alcoholic Beverage Control, commonly known as the ABC, administers nearly one-hundred different alcoholic beverage licenses and permits. However, most restaurants, bars, markets, liquor stores, and other retail businesses will encounter a much smaller group of common license types.
Before applying for or purchasing a California Liquor License, it is important to determine exactly which license provides the privileges your business needs.
Which California Liquor License Does My Business Need?
The following are some of the most common California ABC license types.
| Business or Activity | Common License | Basic Privileges |
|---|---|---|
| Restaurant serving beer and wine | Type 41 | Beer and wine for on-site consumption, with limited off-sale privileges |
| Restaurant serving beer, wine, and distilled spirits | Type 47 | Beer, wine, and distilled spirits for on-site consumption at a bona fide eating place |
| Bar or tavern serving beer and wine only | Type 42 | On-site Beer and wine, no food requirement, no minors allowed. |
| Bar or nightclub or lounge serving full liquor | Type 48 | On site Beer, wine, and distilled spirits, no food requirement, no minors allowed. |
| Grocery or convenience store selling beer and wine | Type 20 | Beer and wine for off-premises consumption |
| Liquor store or supermarket selling full liquor | Type 21 | Beer, wine, and distilled spirits for off-premises consumption |
| Beer-only tavern or similar establishment | Type 40 | Beer for on-site or off-site consumption, limited food required, minors allowed. |
| Winery | Type 02 | Wine production and related sales privileges |
| Small brewery or microbrewery | Type 23 | Beer manufacturing and related sales privileges |
| Off-site catering by an eligible licensee | Type 58 Permit | Allows certain existing licensees to cater alcoholic beverages at approved locations |
These descriptions are intended as a starting point. The precise privileges, restrictions, and requirements of each license should be evaluated before applying for a license for a particular business. Please note this is an abbreviated list of licenses and there are many more types designed for specific uses such as private clubs, travel industry providers, lodging and entertainment venues.
What Liquor License Does a Restaurant Need in California?
For most restaurants, the decision comes down to a Type 41 or Type 47 license.
A Type 41 On-Sale Beer and Wine Eating Place license allows a restaurant to sell beer and wine both for on and off the licensed premises. The business must operate as a bona fide eating place, maintain suitable kitchen facilities, and make actual and substantial sales of meals. Minors are permitted on the premises.
A Type 47 On-Sale General Eating Place license is designed for restaurants that want to serve beer, wine, and distilled spirits. Like the Type 41, the establishment must operate as a bona fide eating place and maintain appropriate food service.
The practical difference is significant. If your restaurant only intends to offer beer and wine, a Type 41 may provide the privileges you need. If you plan to serve cocktails, spirits, or other distilled alcoholic beverages, you will generally need a Type 47.
Type 47 licenses can also be more difficult and expensive to obtain because general licenses are subject to availability restrictions. Our guide to the cost of a California liquor license explains why prices can vary significantly by license type and location.
What Liquor License Does a Bar or Nightclub Need?
A traditional bar or nightclub that wants to serve beer, wine, and distilled spirits will commonly require a Type 48 On-Sale General Public Premises license.
Unlike a Type 47 restaurant license, a Type 48 does not require food service. Minors generally may not enter and remain on a Type 48 licensed premises.
Businesses that want to operate more like a beer and wine bar without serving distilled spirits may instead qualify for a Type 42 On-Sale Beer and Wine Public Premises license. Type 42 establishments do not have a food service requirement, but minors generally may not remain on the premises.
Determining whether a business is legally operating as a restaurant or a public premises can have major implications. Cal ABC provides additional information about retail on-sale California liquor licenses and the privileges associated with these license types.
What Liquor License Does a Grocery Store, Convenience Store, or Liquor Store Need?
Retailers selling packaged alcoholic beverages for customers to take away generally need an off-sale license.
A Type 20 Off-Sale Beer and Wine license permits a retail store to sell beer and wine for consumption away from the licensed premises. This license is commonly associated with convenience stores, markets, specialty food stores, and similar retailers.
A Type 21 Off-Sale General license allows a retailer to sell beer, wine, and distilled spirits for off-premises consumption. This is the license commonly associated with liquor stores and full-service markets that sell spirits in addition to beer and wine.
The primary question is therefore whether the business will sell distilled spirits. If the answer is no, Type 20 may be sufficient. If the store plans to sell vodka, whiskey, tequila, rum, and other distilled spirits, a Type 21 will generally be required.
What Is the Difference Between an On-Sale and Off-Sale Liquor License?
One of the first distinctions in California liquor licensing is whether alcoholic beverages will primarily be consumed at the business or somewhere else.
An on-sale license allows alcoholic beverages to be sold for consumption at the licensed premises. Restaurants, bars, and nightclubs typically operate under on-sale licenses.
An off-sale license allows alcoholic beverages to be sold for consumption somewhere other than the licensed premises. Liquor stores, grocery stores, and convenience stores are common examples.
Some license types also provide specific privileges that cross these general categories. For that reason, businesses should evaluate the complete privileges of a license rather than relying solely on the words “on-sale” or “off-sale.”
You can review the broader categories on our Types of California Liquor Licenses resource page.
What Liquor License Does a Brewery, Winery or Distillery Need?
Businesses that manufacture alcoholic beverages operate under a different set of licenses than most restaurants and retailers.
A Type 01 Beer Manufacturer license applies to larger breweries, while a Type 23 Small Beer Manufacturer license is commonly used by smaller breweries, microbreweries, and certain brewpub operations.
California wineries commonly operate under a Type 02 Winegrower license, which provides wine production privileges along with a number of related sales and distribution privileges.
A Type 04 Distilled Spirits Manufacturer license applies to larger distillers, while a Type 74 Craft Distiller license is commonly used by smaller distilleries.
Manufacturers, wholesalers, importers, brokers, and other businesses within the alcoholic beverage industry can face significantly more complicated licensing requirements especially when atting in the TTB process. Cal ABC maintains additional information about non-retail California liquor licenses for businesses that do not fit the typical restaurant, bar, or retail model.
Do Caterers and Event Venues Need a Different Liquor License?
Alcohol service at catered events can be particularly confusing because a Type 58 Caterer’s Permit is not simply a stand-alone liquor license available to any catering company.
The permit allows certain qualifying ABC licensees to provide alcoholic beverage service away from their primary licensed premises when the required ABC authorization is obtained.
Banquet halls and event venues also do not have a single liquor license specifically created for all event facilities. Depending on the operation, a venue may need an appropriate on-sale license, may work with an authorized caterer, or may qualify for another type of temporary or special authorization.
The details of the business model are extremely important before alcohol service begins.
Does My Location Affect Which Liquor License I Can Get?
Yes. Identifying the correct license type is only part of the process.
The availability of certain general licenses can depend on county population and the number of licenses already issued. In some situations, obtaining the desired license may involve purchasing and transferring an existing license rather than simply applying for a new one.
The proposed location can also create additional issues involving zoning, local regulations, neighborhood concerns, public notices, and protests. Many businesses must address local approval requirements in addition to the ABC licensing process.
Before committing to a property, business purchase, or expensive buildout, it can be valuable to investigate whether the proposed location creates additional licensing challenges. Learn more about use permits and California liquor licenses before finalizing a location.
Can I Apply for Any California Liquor License I Want?
Not necessarily.
Even when you know the license type you want, the ABC must determine whether the applicant, premises, and proposed operation satisfy applicable requirements. Certain license types are also limited in number, and an application can face complications involving the location, ownership structure, local zoning, protests, or other issues.
If you are purchasing an existing license, the license does not automatically become yours simply because the buyer and seller have reached an agreement. An application to transfer the license must be submitted to and approved by the ABC.
Our guide to liquor license transfers in California explains some of the issues that can arise during that process.
How Do I Know Which California Liquor License Is Right for My Business?
Start with four questions:
- Will customers consume alcohol at your business or take it elsewhere?
- Will you sell beer and wine only, or distilled spirits as well?
- Will your business operate as a bona fide eating place with regular meal service?
- Are you operating a restaurant, bar, retail store, manufacturer, caterer, event venue, or another specialized business?
The answers can narrow the choices considerably, but selecting the correct license can become more complicated when ownership, location, zoning, license availability, or transfers are involved.
Alcoholic Beverage Consulting Service has more than 40 years of experience helping businesses navigate California alcoholic beverage licensing. We can evaluate your proposed operation, help determine which license you need, identify potential problems, and assist you through the licensing process from start to finish.
If you are planning to open, purchase, expand, or relocate a business that sells alcoholic beverages, contact Alcoholic Beverage Consulting Service before making major commitments. Getting the license strategy right at the beginning can help avoid costly delays and surprises later.
Working with experienced California liquor license experts can help you determine the right license, understand its actual cost and identify potential licensing or zoning problems before they become expensive delays.
