The Challenge Of Obtaining A Bar License In Utah
by MADELINE FERGUSON
Picture this.
You’ve secured the money. You’ve purchased the space. You’ve hired a team. You’re ready to accomplish your dream of opening a business. A bar, in Utah, to be exact.
But, now you’re faced with the possibility that you won’t be able to actually open your bar. You are at the mercy of Utah’s bar licensing bureaucracy.
Bar owners in Utah are faced with an immense challenge before actually opening their doors: obtaining the correct license to serve a full menu of alcoholic drinks. And there always are far more applications for bar licenses than there are available licenses, because of limitations created by the Legislature. Oftentimes, new bars are denied the licensing, leaving them unable to open after they have invested so much time and money.
You may be thinking, why would anyone take this risk? So, use that as a reminder to be grateful for our local bar owners willing to take the risk so our community has safe spaces to drink and enjoy company.
How To Obtain A Bar License In Utah
First, it’s important to know that Utah splits alcoholic beverages into two categories, beer and liquor.
Beer: The term beer and light beer means a traditionally brewed beer that contains less than 5% alcohol by volume and is sold by beer distributors throughout the state to retail license and permit holders. Beer consumed on the premises of a retail business (such as restaurants or bars) must have both state and local licensing.
Liquor: Liquor includes distilled spirits, wine, flavored malt beverages and beer containing more than 5% alcohol by volume. All packaged liquor is sold in state-run stores with prices set by the state.
Licenses are managed and given out by the Alcoholic Beverage Services Commission, a part-time governing board that meets only once a month. This is why bars must wait for approval or denial for at least a month when applying.
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Prospective establishments must provide extensive documentation along with the application. There are also fees associated with applying. If accepted, businesses must also pay to renew the certification annually.
There are four types of licenses:
Alcohol establishment: Any business that sells alcoholic beverages to patrons for consumption on the premises.
Off premises beer retailer: A retail business that sells beer in its original packaging for consumption off the premises.
Season license: A city license issued to an alcohol establishment that is valid for six months.
Special event alcohol permits: A city issued special event alcohol permit is required for all events which are required to obtain from the Utah alcoholic beverage control commission a single event permit or temporary special event beer permit allowing alcohol to be stored, sold, served and consumed for short term events.
Another consideration for prospective bar owners is location. Permits for establishments that are too close to churches, schools or playgrounds will be denied. For a full list of rules, you can check this website.
So - in order to be considered for a bar license, an establishment must be completely ready to open, have hired staff and be in just the right location, making the process challenging and a massive financial risk in some cases.
Bar & Restaurant Owner Speaks On Licensing Rules
Tamara Gibo, owner of Post Office Place (bar) and Takashi (sushi restaurant) spoke to The Utah Bee recently about the challenge owners face with the licensing system and why a unique and inspiring food and drink culture is important to our state.
“The quest for a bar license that Utah owners go through is daunting. In Utah, bar licenses are not guaranteed, so the investment is a bit of a gamble. There is a chance a project will be built and ready to open, but at that time a license may not be available. When we opened Post Office Place we were really lucky to be able to get a license. It’s kind of frustrating that in order to even apply for a license you have to be ready to open your doors for business. Why would anyone want to open a bar in Utah with that risk, which doesn't exist in most states?,” Gibo discussed.
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