Running a restaurant involves more than just scheduling and inventory management—you also have to play by some truly bizarre rules when it comes to alcohol. What’s legal in one state could get you fined (or even shut down) in another, and a clear understanding of these alcohol laws by state is even more important for restaurants with multiple locations.
These oddball liquor laws run the gamut from fairly restrictive, such as the law in Utah that requires all shots to be measured to exactly 1.5 ounces, to surprisingly permissive, such as the rules in Wisconsin that allow teenagers to drink in public as long as their parents are buying. Knowing the laws that apply to your state can represent either hassles or opportunities for your restaurant, and it’s important to know the difference.
Restrictive State Laws
Navigating liquor laws is never one-size-fits-all, and in some states, the rules come with added layers of complexity. Despite today’s more modern emphasis on consumer freedom, several states maintain surprisingly strict alcohol laws. Whether it’s limits on how much you can pour or what kind of promotions you can run, these laws create added challenges for restaurant owners trying to stay compliant.
Here are a few of the more restrictive, and operationally significant, liquor laws currently on the books:
Virginia: The 45/55 Food-to-Liquor Rule
To keep a mixed beverage license in Virginia, restaurants must ensure that at least 45% of their total sales come from food. That means owners need to closely track their revenue mix and could risk penalties if their drink sales outpace their entrees.
Tennessee: One Drink at a Time (and Lots of Paperwork)
Tennessee’s rules prohibit serving multiple drinks to one guest after 10 p.m.—so no more double whiskey-and-cokes on a late Friday night. Restaurants must also meet specific operating criteria, including seating for at least 40 people, being open at least three days per week, and earning over 50% of revenue from food.
Utah: Metered Pours and Mixed Drink Limits
Utah’s liquor laws are among the most tightly regulated in the country. Bartenders are required to use metered dispensing systems, and cocktails cannot contain more than 1.5 ounces of primary alcohol or 2.5 ounces of total alcohol.
Arizona: Happy Hour with Limits
While happy hour isn’t banned outright, Arizona bars can’t serve more than one drink per person at a time. This means no two-for-ones or double pours during promotional hours for restaurants in Arizona.
Maine: No Free Booze or Drink Ads
In Maine, giving away alcohol is strictly prohibited—whether it’s through a promotion, raffle, or contest. Bars also aren’t allowed to run ads showing people actively drinking, which means marketing your happy hour can require a bit of creative restraint.
Limited Sales Hours (Many States)
A number of states, including South Carolina, Texas, Oklahoma, and Mississippi, still limit when alcohol can be sold, especially on Sundays. These restrictions often vary by county, making it even more critical for operators to stay up to speed on local ordinances.
Permissive State Laws
While some states tighten their grip on alcohol regulations, others have taken a more relaxed approach. These laws (or lack thereof) often came about through cultural influences, economic opportunities, or generally permissive attitudes about the role of states in regulating the sale of alcohol. Thankfully, this can create operational opportunities for restaurants. From to-go cocktails to more lenient rules about underage consumption (with conditions), here are a few examples where states tend to adopt more lax restrictions on liquor:
Indiana: Liquor To-Go Is Here to Stay
As of March 2024, Indiana restaurants are allowed to sell liquor for carryout, joining the growing number of states that extended pandemic-era alcohol flexibility into permanent policy. This creates new revenue streams for bars and restaurants, especially when paired with food takeout orders.
New Hampshire: Tax-Free Liquor Sales
Liquor in New Hampshire is state-controlled but untaxed, making it significantly cheaper than in neighboring states. While restaurants must buy through state-run outlets, the lower pricing can lead to better margins and competitive pricing on cocktails.
Wisconsin and Texas: Underage Drinking with a Parent Present
In both Wisconsin and Texas, minors can legally consume alcohol in a restaurant when accompanied by a parent, guardian, or spouse of legal drinking age. While this raises eyebrows in stricter states, it allows for more family-inclusive dining environments where it’s permitted.
Missouri: Public Drinking and To-Go Cocktails
Missouri has no statewide ban on drinking in public or in vehicles, though cities can (and often do) set their own rules. The state also permanently legalized to-go drinks, offering greater flexibility for pairing meals with alcohol, even for carryout sales.
Nevada: 24-Hour Alcohol Sales and Few State Rules
Nevada offers some of the freest liquor laws in the country: no state regulation agency, 24-hour service is allowed, and public intoxication isn’t illegal. That said, local jurisdictions may still enforce disorderly conduct laws, so operators should still be cautious about overserving obviously intoxicated patrons.
Operational Considerations
For restaurant operators with multiple locations, navigating alcohol laws by state can quickly become a logistical puzzle. A rule that’s perfectly acceptable in one location (like serving to-go cocktails or allowing minors to drink with a parent) could be a violation in another. That’s why multi-unit compliance isn’t just about staying legal—it’s about staying organized.
Managing compliance across locations starts with understanding the unique regulations that apply to each venue. Compliance is a multi-faceted responsibility that involves following not just the letter of the law, but also the specific operational policies in each jurisdiction. Things to consider include:
- Licensing requirements (and renewal timelines)
- Permissible sales hours, including Sundays and holidays
- Promotional limitations, like happy hour restrictions or “BOGO” bans
- Advertising and signage rules, especially involving depictions of alcohol use
- Staff age and training requirements for those serving or selling alcohol
Creating a centralized compliance resource, such as a shared operations manual or dashboard, can help your leadership team stay aligned, even when the laws differ from one zip code to the next. This resource can help ensure your staff stays up to date on these state-specific rules, particularly for bartenders and shift managers who make day-to-day decisions. Ongoing training and refreshers help reduce risk and ensure consistent execution across all locations.
Technology solutions like Back Office can make compliance easier by centralizing your documentation, automating reporting, and flagging potential policy violations in real time. Back Office already gave Tennessee State Parks the tools to simplify liquor reporting, stay compliant, and ditch the spreadsheets. With real-time COGs visibility and automated processes, they cut costs, saved time, and gained cleaner data. With the right tools in place, your team can also spend less time researching the latest legal details and more time delivering great service.
Strategies for Staying Current on Liquor Laws
Liquor laws are constantly evolving, and recent trends suggest that many states are moving toward more relaxed regulations, especially when it comes to things like service on Sundays, to-go cocktails, and extended service hours. But automatically assuming your latest two-for-one special idea will be a hit can be a dangerous game, especially if you’re juggling the legal logistics of a multi-unit operation.
To avoid costly violations or missed opportunities, make sure your team has a system in place to track legal updates across all your operating regions. Here are a few simple ways to stay ahead:
- Subscribe to State ABC Updates: Most Alcoholic Beverage Commissions (ABCs) offer newsletters or regulatory alerts, providing you an easy way to stay in the loop.
- Network with Local Associations: Industry associations are often among the first to report on pending changes and offer practical guidance for operators.
- Assign a Compliance Lead: Give someone on your team the responsibility to monitor law changes and share updates across locations.
- Implement a Technology-Based Solution: Tools like Back Office can help automate compliance tracking, centralize documentation, and reduce the manual effort of staying up to date.
The best way to future-proof your operations is by building systems that can quickly adapt to change. This means housing your policies and procedures in cloud-based platforms, keeping your team aligned through digital communication tools, and integrating POS or inventory systems that can adjust based on rule-based configurations. With the right technology in place, you’re not only staying compliant but also setting yourself up for smarter, more scalable growth.
Stay Compliant, Stay Competitive
From metered pours in Utah to to-go cocktails in Missouri, liquor laws vary wildly by state—and staying compliant requires more than just good intentions. For multi-unit operators, success comes from staying informed, training your team well, and leveraging technology to navigate evolving rules with confidence and efficiency.
