Liquor-by-the-Drink Restaurant License in Memphis, Tennessee (2026)
You cannot legally serve beer, wine, or spirits to your customers, and risk a daily fine for operating without a permit, unless you secure a Liquor-by-the-Drink Restaurant License from the Tennessee Alcoholic Beverage Commission (ABC). This mandatory permit, also called a retail restaurant license, is issued by the ABC in coordination with local Memphis authorities and requires a separate application to the Memphis Beer Board for on-premises consumption. Key facts:
- 48 fields to complete on the state application — ApronPrep auto-fills 40 using your business profile
- $0–$0 in direct state application fees (though city and permit fees apply separately)
- Varies processing timeline, dependent on background checks and inspections
Most applicants complete this in under 15 minutes with ApronPrep, which auto-fills 40 of 48 fields.
Analyzed from Liquor-by-the-Drink Restaurant License
83% from one compliance interview
Manual entry or document upload required
Why You Need a Liquor-by-the-Drink Restaurant License
In Memphis, selling alcoholic beverages for on-premises consumption requires a specific state-issued license. The authority stems from the Tennessee Alcoholic Beverage Commission (TABC) Act and corresponding city ordinances, which classify restaurants separately from bars or retail package stores. The Tennessee Alcoholic Beverage Commission (TABC) is the primary issuing authority, and compliance is non-negotiable for any establishment serving liquor, wine, or beer by the drink. Key legal bases include the state's liquor-by-the-drink laws, which mandate specific revenue percentages from food sales (typically 50% or more) to qualify as a restaurant, as well as strict server training (TABC-approved Seller/Server Training) and age verification protocols under state law. Operating without this license is considered a serious violation of state-controlled substance regulations.
Failure to secure and maintain this license carries severe and immediate consequences. Based on TABC enforcement data and local code, the primary penalties include:
- Substantial fines: Monetary penalties can escalate quickly, often starting at $1,000 per violation and reaching $10,000 or more for repeated offenses or sales to minors.
- Operational shutdown: The TABC can issue an immediate cease-and-desist order, leading to license suspension (typically 3–30 days for a first offense) or permanent revocation, halting all alcohol sales and critically damaging revenue.
- Legal and business complications Criminal prosecution is possible for sales to minors. Furthermore, most commercial leases and business insurance policies explicitly require a valid liquor license; operating without one can void your insurance coverage and put you in default of your lease agreement, risking eviction.
Legal code: State liquor control act, server training requirements, age verification laws
Recent update: As of 2026, Tennessee has implemented enhanced digital ID verification requirements for servers to combat underage sales, and the TABC now mandates that all license renewal applications be filed through its online portal.
Who Needs a Liquor-by-the-Drink Restaurant License?
| Type | Required | Notes |
|---|---|---|
| Restaurant (Full-Service) | Required | Required for any establishment serving alcohol for on-premises consumption with a minimum of 50% of revenue from food sales, as defined in Memphis Code § 4-32 and Tennessee ABC regulations. |
| Bar / Nightclub | Required | Required as the primary business is selling alcohol for on-premises consumption, even if food is served, under the city's liquor-by-the-drink licensing ordinance. |
| Food Truck | Not Required | Typically requires a different 'Special Event' or 'Caterer' liquor license for temporary service; a standard restaurant license is for a fixed premises per Memphis regulations. |
| Coffee Shop / Café | Required | Required if the business plans to sell beer, wine, or spirits for on-premises consumption, regardless of its primary food/beverage focus. |
See which restaurant types need this requirement — and which don't.
See Full Requirements →Field-by-Field Guide (48 Fields)
40 of 48 auto-filledLegal Business Name
textEnter the exact, full legal name of your business entity as it is filed with the Tennessee Secretary of State, matching your Articles of Incorporation or Organization exactly, including any designators like 'LLC' or 'Inc.'
COMMON MISTAKE: Using a DBA/trade name instead of the registered legal name, or omitting the entity suffix (e.g., 'LLC'), which causes a rejection due to name mismatch with state records.
Doing Business As (DBA)
textEnter the trade name under which your restaurant publicly operates if it differs from the legal name; if your legal name and operating name are identical, you may enter 'Same as Legal Name' or leave blank if the form allows.
COMMON MISTAKE: Leaving this blank when a DBA is actively used, or entering a DBA that is not properly registered with the Shelby County Clerk's office, leading to a 'fictitious name' compliance check failure.
Federal EIN
textEnter your 9-digit Federal Employer Identification Number (FEIN) issued by the IRS, in the format XX-XXXXXXX, which must correspond to the legal business entity named in Field 1.
COMMON MISTAKE: Using a Social Security Number for a corporation/LLC, entering a Tennessee sales tax ID instead, or transposing digits, which triggers an automatic EIN verification failure with the Alcohol Beverage Commission.
Business Structure
selectSelect the precise legal structure of your business from the provided dropdown (e.g., 'Tennessee Limited Liability Company (LLC)', 'Corporation', 'Partnership', 'Sole Proprietorship') as it is registered with the state.
COMMON MISTAKE: Selecting an incorrect structure (e.g., 'LLC' when registered as a corporation) or using generic terms like 'Company,' which creates a discrepancy with your state filing and delays the background check process.
Business Phone Number
phoneEnter a direct, working phone number for the business location or main office, including area code, where inspectors or regulators can reach a responsible manager during business hours.
COMMON MISTAKE: Providing a personal cell number without identifying it as such, or listing a disconnected/non-local number, which can lead to failed contact attempts and processing delays.
Business Email Address
emailEnter a professional, monitored business email address (e.g., admin@yourrestaurant.com) that will be used for all official correspondence, including license approval notices and renewal reminders.
COMMON MISTAKE: Using a personal email (e.g., Gmail, Yahoo) that may be flagged as spam or become inactive, or entering an email with typos, causing critical compliance notices to be missed.
Restaurant Street Address
textEnter the complete, physical street address of the restaurant premises where alcohol will be stored and served, as it appears on your lease and local property records, including suite/unit number if applicable.
COMMON MISTAKE: Listing a P.O. Box, corporate office, or an incorrect/non-standardized address format (e.g., '123 Main St' vs. '123 Main Street'), which fails the mandatory on-site inspection address verification.
City
textEnter 'Memphis' as the city for the licensed premises; do not list a neighboring municipality like 'Bartlett' or 'Germantown' unless the property is officially within those jurisdictions.
COMMON MISTAKE: Entering an incorrect city that does not match the official USPS designation for the ZIP code, creating a jurisdictional conflict with the Memphis Beer Board's authority.
State
textEnter 'TN' or 'Tennessee' as required by the form's format; this must match the state of registration for your business entity.
COMMON MISTAKE: Using an abbreviation like 'TN' when the form expects the full name 'Tennessee,' or vice versa, though this is often auto-corrected by reviewers.
ZIP Code
textEnter the correct 5-digit ZIP code for the restaurant's physical location; use the full 9-digit ZIP+4 if the form has space and requires it for precise geolocation.
COMMON MISTAKE: Transposing digits or using the ZIP code for a mailing address/P.O. Box instead of the physical premises, which can misdirect inspectors and delay the mandatory pre-license site visit.
ApronPrep auto-fills 40 of 48 fields from a single compliance interview — no re-typing, no guessing what the government expects.
Top 5 Liquor-by-the-Drink Restaurant License Mistakes
1. Mistake Title: Misclassifying the Primary Business
Applicants incorrectly list their primary business as a 'bar' or 'nightclub' instead of a 'restaurant,' which is defined by Tennessee law as deriving over 50% of gross revenue from food sales. This mistake triggers an immediate denial because the license type is tied to food service. To avoid this, base your projected revenue percentages on your business plan and clearly state 'Restaurant' as the primary business activity, supported by a detailed menu and pricing model.
2. Mistake Title: Incomplete Business Entity Documentation
Submitting only the state Certificate of Formation without the local Memphis Business Tax License and a certified copy of the corporate charter or LLC Articles of Organization. The Tennessee Alcoholic Beverage Commission (TABC) and Memphis City Clerk require the full corporate suite. This omission adds 2–3 weeks for resubmission. Ensure you have all business documents filed and approved at both the state and city levels before applying, and submit clear, certified copies of each.
3. Mistake Title: Floor Plan Non-Compliance with TABC Regulations
Providing a generic architectural floor plan that does not explicitly label the 'primary entrance,' all points of sale (POS), storage areas for alcoholic beverages, and the kitchen. TABC regulations (Title 57, Chapter 4) require the plan to demonstrate control over alcohol service areas. Unlabeled plans are rejected for non-compliance. Use a scaled drawing that highlights these specific zones and includes dimensions, ensuring it matches the description in your application.
Skip the Paperwork on Your Liquor-by-the-Drink Restaurant License
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Liquor-by-the-Drink Restaurant License by City in Tennessee
| City | Fee Range | Timeline |
|---|---|---|
| Memphis | ||
| Nashville |
Typical Timeline: 60–120 Days (Full Process)
Gather Mandatory Pre-Application Documentation
Collect your state Sales Tax Certificate, city Business Tax License, Certificate of Occupancy, and detailed floor plans showing the bar area and exits. You'll also need a signed lease or deed and the food service permit. These must be finalized and active. Applications are most commonly rejected due to incomplete or mismatched business tax documentation, so double-check that your registered business name is identical on all forms. This is also the time to schedule your ABC manager/server training certification.
Submit Application Packet to Memphis Alcohol Commission
File your complete application packet with the Memphis Alcohol Commission (MAC). This includes the ABC Form L-7, the local addendum, all supporting documents, and the <strong>$450–$2,250</strong> government filing fee (based on seating capacity, per the MAC fee schedule). Submissions are typically in-person at the MAC office. Payments must be by cashier's check or money order. Missing the local addendum form or paying the incorrect fee tier are frequent causes of immediate return.
Background & Location Review Period
The MAC and Tennessee ABC will conduct parallel reviews. The MAC verifies zoning compliance, reviews your floor plan, and schedules a premises inspection. Simultaneously, the Tennessee ABC runs background checks on all applicants and corporate officers. Ensure your location meets the <strong>500-foot distance rule</strong> from schools and churches as measured by the city. This is the longest phase; delays often occur if inspectors find unpermitted renovations or if background check information doesn't match your application.
Where to Apply
Applications go to the Tennessee tennessee alcoholic beverage commission. Local procedures and fees may vary — select your city below.
Other Requirements You'll Need
This is one of 13 requirements for opening a restaurant in Tennessee.
ADA Compliance Self-Certification
federal
Alarm System Permit/Registration
local
Alcohol Server Training Certification
state
Annual Report Filing
state
See all co-required forms and how they connect to your compliance dossier.
See All RequirementsThe total processing time varies significantly and can take several months from application to final approval, per the Memphis Alcohol Commission. This is due to mandatory background checks, local public notice periods, and final state-level review by the Tennessee Alcoholic Beverage Commission (TABC). Contact the Memphis Alcohol Commission for the most current estimated timeline.
The direct government filing fee for the local application is $0, according to the City of Memphis fee schedule. However, significant costs are associated with state fees, mandatory Alcohol Server Training Certification for all staff, and legal notices published in a local newspaper. Not legal advice — verify all current costs with the Tennessee Alcoholic Beverage Commission and Memphis Alcohol Commission.
No, a liquor-by-the-drink license is specific to the approved premises and business entity. To move locations, you must apply for a new license, which triggers the full review process including a new Certificate of Occupancy and inspections. The existing license at the old location would be surrendered as part of this process.
You must renew your license annually. The renewal period and deadline are set by the Tennessee Alcoholic Beverage Commission, and failure to renew on time results in expiration and the inability to sell alcohol. The local Memphis Alcohol Commission may also require a current City Business License as a condition of renewal.
Inspectors from the Memphis Alcohol Commission and Fire Department verify the premises matches the submitted floor plan, ensures proper exits and signage, and confirms the business derives over 50% of its revenue from food sales. They will also check for required permits like the Building Permit and Certificate of Occupancy. Common issues leading to failure include incorrect partition heights or blocked emergency exits.
About This Data
This guide is generated from ApronPrep's compliance dossier system, which uses 53 parallel AI authority experts to discover requirements, then downloads actual forms and generates field-level intelligence for each one.
For Tennessee specifically, we have analyzed compliance dossiers for 2 cities (Memphis, Nashville), generating Rich FILs (Form Intelligence Layers) with 48 form fields analyzed for this requirement. Fee data is sourced from actual county department fee schedules, not estimates.
Our data is verified against official government sources and updated when regulatory changes are detected. If you find an error, please report it — accuracy is our core commitment.
Sources
- State liquor control act, server training requirements, age verification laws
- Nashville — Division of Professional Licensure / Licensing Board
This Form Is One of 60+ Requirements.
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