Alcohol Beverage Licensing Options-Alternatives to the Quota License

Sep 20, 2018

You’re thinking about opening a restaurant but the one thing that keeps getting in the way of your entrepreneurial dream is the cost of an alcohol beverage license. You’ve heard that they’re really expensive…in the range of $100,000.00 to as much as $750,000.00. Guess what? Your right, quota liquor licenses are very expensive. They are sold like any commodity on the open market and the price varies on their availability in a given Florida County. Their numbers are limited and the State of Florida only issues new quota licenses when there is a population increase of 7500 people or more in a specific county. Quota licenses have few restrictions on them and can be placed and used across retail venues from liquor stores to restaurants. But they are indeed very expensive.

So our entrepreneur’s trepidation continues. How will the dream come to fruition? Fear not-there is a solution (other than financing options – which will be addressed in later blog entries). The Alcohol Beverage Law is rich with special license options that may be a solution.

As an example, and to stick to our theme, our restaurant entrepreneur has the option of obtaining an “SFS” license. The “SFS” is available to restaurants that (by state law) are at a minimum, 2,500 square feet, equipped to serve 150 meals at one time and derive 51% of its gross revenue from the sale of food and non-alcoholic beverages. Note that special ordinances may be in effect in a given county that dictate conditions like square footage or seating requirements. If various zoning and health requirements are met (among other things) an “SFS” can be placed at a restaurant for the sale of wine, beer and spirts for consumption on the premises. The state annual fee for this license is a few thousand dollars.

Another example of an available special license is an “S” license. This license is available to hotels and motels (generally speaking) with 100 or more rooms. The hotel or motel (depending on the sketch submitted to the Division of Alcoholic Beverages and Tobacco) may sell alcoholic beverages, including wine, beer and spirits at restaurants, bars, room mini-bars and on the grounds of the hotel including the pool area. As with the “SFS”, the annual fees for this type of license is a few thousand dollars as well.

Other special licenses (at nominal fees) include those available to preforming arts centers, catering companies, bowling alleys, civic centers, passenger carriers, airports, live performance theaters, fairs and expos and not-for-profit organizations and the list goes on.

The complex aspect of obtaining these types of licenses is ensuring that the applicant(s) is compliant with alcohol beverage laws and code sections, Florida Department of Health, Hotel and Restaurants (or Department of Agriculture) regulations and municipal codes that pertain to the placement of these types of licenses. Lack of understanding of the complex regulations will surely end up in added expenses, prolonged times and perhaps even denial of the application. The Hospitality, Alcohol and Leisure industry Group at Greenspoon Marder LLP is well-versed in all matters concerning these types of licenses. We have guided bourgeoning entrepreneurs as well as multi-billion dollar publicly traded companies and every business type in-between with their retail licensing needs and we are here to guide you too.

*Not an Attorney

**The information in this article is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Greenspoon Marder LLP or the individual author(s), nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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