Do You Need a Liquor License to Start a Mobile Bar Business?
Photo credit: Deborah Jossick, Oak and Lore Studios (https://oakandlorestudios.com/)
When starting a mobile bar business, the first question many entrepreneurs ask themselves is whether they’ll need a liquor license. Acquiring a liquor license can be an arduous task. The requirements vary from state to state, and there’s no guarantee of approval. Unless you already own a restaurant, bar, or catering company, acquiring a liquor license is often prohibitive. It becomes even more difficult if your state requires you to have your own, non-shared, health-certified kitchen.
So, do you need a liquor license for a mobile bar? Don’t lose hope just yet! Depending on the business model you choose, a liquor license may not be required to start a mobile bar business. It is still essential to check with your local government to ensure that you comply with all the regulations.
In this post, we’ll break down the top three business models for mobile bars, which ones require a liquor license (and which ones don’t), and provide resources for you to find more information on all the legal requirements in your state.
Mobile Bar Business Models
When starting a mobile bar business, there are three dominant business models to consider. Dry Hire, Licensed Partner, and Full-Service.
Each business model has its own benefits and drawbacks, which we will discuss in an upcoming post. For now, we recommend searching for other mobile bar businesses in your area to find any information you can on which business model they use. You can usually determine this by consulting their Pricing, FAQ, or About pages. If your business operates in one of the top mobile bar states, this information should be fairly easy to find.
Here’s a quick run-down of the top three business models for mobile bars (it’s important to note that there are many ways to run a mobile bar business, and not all are included here).
Mobile Bar Business Models That Don’t Require a Liquor License
Dry Hire
Mobile bar businesses that use the Dry Hire model rent only the physical bar and do not serve alcohol. This is an attractive option for mobile bar businesses who want to provide clients with a unique bar experience, but do not want to deal with the hassle of obtaining, and maintaining, a liquor license. With the Dry Hire model, the business provides the mobile bar as a simple party rental. The client will use your bar to provide and serve their own alcohol or hire a third-party bartending or catering service. If the client opts to provide and serve their own alcohol, a Dry Hire mobile bar is an affordable option. Clients only need to pay to rent the equipment, and not for the services of a bartender or staff.
Licensed Partners
The Licensed Partner business model is a great way for mobile bar businesses to provide a comprehensive experience without having to obtain their own liquor license. This business model works with a licensed third-party bartending or catering service, so you can be sure that you conduct your services in accordance with state and local laws. This is a great option for businesses that want to offer a more complete package, including tailored drink menus and bartending services, but don't want to deal with the hassle of acquiring a liquor license or caterer’s permit.
Mobile Bar Business Models That Require a Liquor License
Full-Service
The Full-Service business model for mobile bars provides the complete package for the client. This model also ensures you maintain control of your brand’s image and every interaction your business has with clients. Since this model necessitates you provide, serve, and sell alcohol, a liquor license or similar permit allowing the sale of alcohol is required. This comprehensive approach makes it easy for clients to host a party or celebration without worrying about the details.
Navigating state liquor laws for your small business
One of the best ways to figure out what documentation is required is by contacting your local health department and liquor control board/commission. They'll be able to give you all the information about the types of licenses you’ll need and the laws/regulations and hygiene policies your business will need to follow. Note that the best way to ensure your business is compliant with all local laws and regulations is by consulting an attorney familiar with your area's liquor laws.
To help you find the proper requirements for your market, we’ve compiled a list of liquor control boards by state. Health departments often vary by county or even city, so you’ll need to find your local health department on your own.
Liquor control boards by state
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California Alcoholic Beverage Control
California Board of Equalization (Alcoholic Beverage Tax Program)
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Hawai’i: Hawai'i County Department of Liquor Control
Honolulu: Honolulu Liquor Commission
Kaua’i: Kaua’i Liquor Control Commission
Maui: Maui Liquor Control
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Final Thoughts
The application process for acquiring a liquor license can be a challenging task that requires patience and perseverance. But, depending on the business model you choose for your mobile bar, you may not need a liquor license at all. With the Dry Hire model, for example, you only rent the physical bar and do not serve alcohol. This can save you valuable time and money especially since you won't need to go through the lengthy liquor license application process which could take 30 days, 90 days, or longer. However, if you decide to operate a Full-Service mobile bar, which provides the complete package for the client, including the provision, service, and sale of alcohol, you will need a liquor license. Again, to ensure you comply with all the legal requirements in your state, consult with your local government or an attorney familiar with the liquor laws in your area.
Start a Mobile Bar or Food Cart Business the Right Way
If you're eager to start your own mobile bar service or food cart business, don't let anything stand in your way! You don’t need an expensive state-of-the-art beer truck or a modified horse trailer to start your mobile business. A cart could be the perfect way to build a new side hustle, career, or enterprise.
We know what it takes to turn an idea into a thriving business. And we can offer some advice on other parts of the process until you're fully established.
Why wait to start your dream business or test your mobile concept? Get in touch with our team today to learn more about running a mobile business.
We can't wait to chat with you!
