Category: Restaurant Management

Even when we’re not in the midst of a pandemic, the restaurant business is one of the tougher ones. Competition is tight, and margins are too. Trends, technology and regulations are constantly changing. These days, it’s all a restaurant operator can do to keep things running smoothly and maintain status quo — much less increase restaurant sales. 

And for some restaurants, that’s just fine. But if your goal is growth: read on for 10 ways you can increase restaurant sales in 2021 and beyond.

1. Evaluate your technology

Hospitality innovation didn’t slow down in 2020; if anything, it picked up speed as everyone was forced to come up with creative solutions to keep diners and employees safe and satisfied. 

Many restaurants have tapped into tech that supports the major shift we’ve seen toward off-premise sales due to Covid. Think: online ordering, delivery, contactless payments, etc.

Assuming we return to (some semblance of) normalcy later in 2021: start thinking ahead as to how you’ll continue to leverage that new technology. Maybe you considered some of those investments interim solutions, but it’s likely that consumer expectations have changed for good. Patrons will continue to demand a more seamless and automated experience, whether they’re dining in or carrying out. 

And don’t forget about your employees — the backbone of your business. During the pandemic, prioritizing the health and financial security of your people has been imperative. That shouldn’t change, no matter what happens in 2021. Take advantage of tech that makes their experience better — e.g., team communication tools, scheduling platforms, and digital tipping software. 

2. Formalize your marketing plan (and your contingency plans, too)

Maybe you’ve never had a marketing plan before, or maybe you “waved the white flag” after getting blindsided by a pandemic and battling shutdowns throughout 2020. 

Repeat after us: the past is in the past. It’s a new year, which is a great time to put together a fresh marketing plan and budget that’s specifically designed to increase sales in your restaurant. 

While no one has a crystal ball, we’ve all got a much better idea of how Covid can impact our businesses, which makes it easier to put contingency marketing plans in place. That means if your city gets hit with another shutdown, you won’t have to hit the pause button on your efforts; instead, you’ll be prepared to change gears and pull the levers that will support your growth goals until things open back up.

Not sure where to start? Check out our post on building a marketing plan for your restaurant. As you’re mapping it out, think through how your messaging and channels might shift if circumstances change (again) due to Covid.

3. Strengthen your digital presence

Another by-product of 2020: your customers are more internet-savvy than ever before. If you don’t have a website yet, it’s time! You can set up your own (no coding skills required!) with a platform like Squarespace, or you can hire a freelancer or development team to create one for you. You’ll want to make it incredibly easy to find your menu, hours of operation, location, contact information for reservations or questions, etc.

Before you build all your functionality from scratch (like online ordering or payments), take a look at your existing technology; there may be out-of-the-box digital offerings or add-ons you can use to save time and money.

Of course, your website is just one piece of the digital puzzle. Evaluate your social media presence (particularly Facebook and Instagram) to showcase your food, location, and additional offerings, like take-out, delivery or catering. You’ll also want to use these platforms to share news and promotions. Photography is key: if you’re not great with your iPhone, find a team member who is. In fact, it’s a good idea to have a social media point-person who can lead the charge on sharing consistent, on-brand content with your digital audience.

4. Optimize your off-premise/delivery channel

If you currently offer delivery, make sure you’re making it as easy as possible for your customers to order, pay and have their food delivered to them. While third-party delivery apps are an option, fees are high, so it’s important to evaluate if this model is truly feasible for your business. Whatever direction you choose to go, make sure all of your processes — from customer service to staffing to food preparation — are as streamlined as possible to ensure a smooth, transparent experience for your patrons. (Not sure if you should use a third-party service or DIY? Download our free guide!)

5. Refine your recruiting processes 

Your people affect every aspect of your business: day-to-day operations, the customer experience, your company culture, and ultimately, your bottom line.

Even if you think things are hunky-dory with your team structure, take a look at:

• Your org chart: Do you have the right people in the right places? Where do you foresee changes happening in 2021? When will you need extra support? Are there new roles you need to add to the team? (For example: maybe college-aged employees are planning to head back to campus when schools reopen, whenever that happens. Maybe tourist season won’t be quite as touristy this year, and you’ll need fewer hands. Maybe you’re ready to up your marketing game and you want to bring on someone to lead the charge.)
• Your recruiting process: Once you have an idea of upcoming or potential needs, go ahead and optimize your recruiting processes. Identify and codify your ideal employee profile: what qualities does every person on your team need to have? What specific experience do you require for each role? It’s also important to consider how you’ll “sell” the job to candidates, especially in a tough labor market. Do you offer benefits? Is scheduling flexible? Do your employees get instant access to their earnings? Even small perks like free food are worth mentioning. (Check out our interview template for more tips!)

6. Reduce your turnover 

Once you’ve got the right people in place, how do you encourage them to stick around? Recruiting and training new candidates take time and ultimately cost you money, so it’s worth investing in the employee experience. 

Ultimately, that means making them feel cared for and respected, especially during a pretty intense time for hospitality workers. What can you do to keep them healthy and financially secure during a pandemic and the aftermath? Here are a few ideas:

• Most importantly: keep the lines of communication open, so employees feel comfortable sharing any issues before they become major problems.
• Be as flexible as possible when health or family/childcare needs arise.
• Prioritize employee safety by enforcing sanitation procedures, social distancing regulations, etc. (that goes for customers, too!).
• Give them financial security by providing instant access to tips and earnings.
• If you’re in a position to do so, consider offering some level of benefits to your people
• Help them stay in the know when it comes to government support for workers. 

7. Improve employee training

Excellent, ongoing employee training is an often-overlooked way to increase restaurant sales. Aside from keeping operations running smoothly and efficiently, having properly trained employees improves the customer experience and ensures your people are confident in their roles (which contributes to employee satisfaction and retention).

Set up a training program for each new employee type, and try to make it templated so you don’t have to reinvent the wheel every time. Consider investing a bit of your time to develop an employee handbook that covers things like:

• General expectations and company values
• Dress code
• Technologies in place
• Daily operations and workflows
• Cleaning checklists
• Safety protocols 
• Beginning- and end-of-shift processes (e.g., clocking in and out)
• Payment and tip-out policies

Training shouldn’t just be a one-time deal. Consider setting up monthly or quarterly team sessions focused on areas where your people may need a refresher, or where you can introduce new tools or policies. Solicit feedback on the training so you can continuously improve your training program.

8. Launch a loyalty program

This tactic might be part of your broader marketing plan, but we felt it was worth calling out. We know, we know — everyone’s sick of talking about how “unprecedented,” “challenging,” and “uncertain” these times are…but suffice it to say, there’s no shame in going after low-hanging fruit to increase restaurant sales.

So while a big chunk of your marketing efforts may seek to draw in new customers, don’t neglect the captive audience you’ve already got. Loyalty programs are a great way to incentive patrons to return to your establishment over and over again. Typically, loyalty programs are based on a points system that tracks how many times customers frequent your restaurant, rewarding them with discounts on food and merchandise, buy-one-get-one-free coupons, and even free appetizers and desserts. (Here’s a little inspiration to get your own loyalty program started.)

9. Freshen up your menu

Perform a menu audit to determine which items are working and which aren’t, and rotate in some new options. It’s a great opportunity to experiment with flavors and capitalize on food trends that could help your restaurant bring in a broader audience. 

It’s also a good opportunity to communicate with current and potential customers. Consider surveying your VIP patrons about their favorite (and least favorite items). If/when you make changes, make a splash about it. Share photos of your new dishes to share on social, invite local reporters, influencers or food writers to stop by, and promote everything through your tried-and-true channels.

10. Think through your pricing

Now may not be the time to jack up prices, but it’s never a bad idea to take a look at your margins, your clientele, your competitors, etc. and see if it makes sense to shift your pricing around.

You certainly don’t want to upset loyal customers or catch them off guard. But it may be possible to increase pricing on certain items enough to significantly impact your bottom line without significantly impacting your patrons. If you do make changes, ensure you’ve updated your menu everywhere — not just in your restaurant, but also wherever it exists online. Communicate price changes with your employees, and train them on how to respond to any questions or concerns from customers. 

(If pricing makes your head spin, here are a few basic calculations that can help!)

Much like other industries such as healthcare, construction, and manufacturing, restaurants must comply with OSHA rules and regulations for the safety of employees and customers.

If you’re not familiar with OSHA (or you need to brush up), here’s a quick primer.

What is OSHA?

OSHA stands for the Occupational Safety and Health Administration, or OSHA, as part of the Occupational Safety and Health (OSH) Act of 1970. It was created as a response to the rising number of workplace deaths and injuries during that time. OSHA sets and enforces certain standards in an effort to keep working men and women safe and healthy while working at their place of employment. These standards are reinforced with training, outreach, education, and assistance for employers and their employees. 

OSHA Rules and Regulations for Restaurants

Restaurants are subject to the same standards as factories and other work environments, though the implementation might differ. OSHA provides specific rules and regulations that restaurant owners must adhere to “keep their workforce free of serious recognized hazards,” according to the OSH Act. These include:

• Posting an official OSHA poster that notifies employees of their rights under the OSH Act and a list of the owner’s obligations. The poster should be placed in a highly-visible area where there is a lot of floor traffic. 
• Keeping accurate and updated records of accidents and injuries that occur in the workplace. 
• Reporting any work-related fatalities, hospitalizations, loss of limbs or eyes to OSHA within eight hours of being altered of the event. 
• Allowing employees and their representatives easy access to their medical records. 
• Ensuring employees there will be no retaliation if they bring up safety concerns or contact OSHA. 

New requirements and safety standards for restaurants are being enforced due to the Covid-19 pandemic. One of them requires employers to report any cases of the virus among restaurant staff. Others include:

• Limiting direct contact with the public through takeout or curbside services
• Encouraging employees who are sick or show symptoms to stay home
• Training workers in proper hygiene practices
• Cleaning and disinfecting surfaces on a regular basis using only cleaning chemicals on this list
• Allowing workers to wear masks or other protective gear to help prevent spread 
• Communicating regularly about any health and safety concerns

For more on OSHA’s standards, refer to the Young Workers – Restaurant Safety page on the OSHA website. 

Restaurant Employee Protections Under OSHA

As a restaurant owner, your employees can file two types of complaints:

1. Safety and health complaints – These are filed by employees who believe they are working under unsafe work conditions or the atmosphere is detrimental to their health. 
2. Protection from retaliation complaints – Employees can file a complaint if he or she believes they have been retaliated against for voicing concerns about the health and safety of their work environment to OSHA.

Your restaurant employees also have other rights under OSHA, including these key protections:

• A safe and healthy workplace
• The ability to file a worker’s compensation claim if injured on the job
• Minimum wage payment, whether through hourly pay, tips or both
• Overtime pay if more than 40 hours are worked a week
• A 30-minute meal break during any shift longer than six hours
• Protection from discrimination
• Protection by laws for minors (if under 18 years of age)

   

How To Keep Your Restaurant OSHA Compliant

Following OSHA rules and regulations in your restaurant is essential for happy and healthy employees. There are a number of ways to make sure you reinforce safety and health standards in your kitchen and dining area: 

• Communication – One of the most important things you can do to ensure the health and safety of your employees is to openly communicate with them, and encourage them to do the same. This means practicing patience and good listening skills without judgement, offering valuable feedback and guidance, and making them feel valued. 
• Training – Employers are required by OSHA to train their employees on the health and safety of their profession. This includes instructing them on the use of tools and machines necessary for them to perform their jobs, as well as emergency procedures. 
• Ergonomics – The most common type of injury in restaurants are sprains and strains, burns, lacerations and puncture wounds, and eye injuries. Make sure employees have the equipment needed to perform their jobs safely, and are able to use it in the most comfortable way possible. 
• Floors – Slips and falls are the most preventable accidents but they can result in serious injuries. Make sure floors are clean, not slippery and are clear of obstructions. Wherever employees have to stand for a long time, such as at prep and cooking stations, provide a padded surface to avoid back and leg strain. 
• Heat – Train employees on how to work safely around heat in a commercial kitchen to avoid burns, hot oil splashes and hot plates.

Maintaining and enforcing OSHA standards is essential to help keep your employees safe. But the Covid-19 pandemic has shown a new light on the importance of restaurant cleanliness and safety. Using software that allows employees access to their tips without handling cash is one very important way to help deter the spread of Covid-19 and ensure you’re following OSHA guidelines. 

In some ways, marketing your restaurant effectively has never been easier. Here in 2020, with the current digital landscape, the sky’s the limit when it comes to the multitude of tools you’ll find online to get the word out about your dining establishment. 

The problem is, your competition knows this, too. 

As we mentioned in our last blog post, around 30% of restaurants fail the first year and 60% after three years. That means you’ve got to come up with some pretty inventive marketing tactics for your restaurant to compete with the more than 660,000 other eateries in the United States. 

Before we get into how to market your restaurant effectively, let’s talk about the importance of your marketing strategy.

Why Your Restaurant Needs a Marketing Strategy

There’s no limit to the many ways you can effectively market your restaurant. But if you don’t have a marketing plan or strategy, you’ll be wasting valuable time and money guessing at what works and what doesn’t. Here are the seven steps you need to take to create an effective restaurant marketing strategy: 

1. Determine your objective – Assess your current business needs and ask yourself what you’re trying to gain from marketing. Be as specific as possible. Do you want to drive more traffic? Improve your brand image or expand awareness? Become more discoverable online?

    

2. Decide how you’ll measure success – Once you’ve decided what you’re trying to accomplish with marketing, it’s time to set some specific and quantifiable KPIs (key performance indicators) that will help measure success. Although marketing will always involve some amount of trial and error, it’s important to use data to help you understand what’s working and what’s not, so you can course correct along the way.

    

3. Create a marketing budget – Setting your budget before you complete your marketing plan ensures you’ll stay within your limits and keeps you from spending reactively, which can get you into financial trouble. Keep in mind: time is money. Take into consideration your bandwidth to focus on marketing and whether you’ll need to outsource any support.

    

4. Define your audience – Before you start marketing, it’s important to consider who your customers are. Think about the demographics of your current or potential customers. How old are they? What are their interests? What do they do for a living? Where do they spend their time? Knowing who your customers are and who you want to attract will help when it comes to the type of marketing you do and the messaging you use.

    

5. Note your customers’ needs – Consider the problems or needs you’re solving for your customers — and here again, get specific. Sure, if you’re a restaurant, they’re probably hungry. But dig a little deeper: what are they looking for when they walk through your doors? Are they looking for a comfortable place to gather with friends? Do they prioritize fast service and affordability? Make a list to refer to later as you brainstorm marketing messaging.

    

6. Identify your true strengths – Rather than generically marketing your restaurant’s assets, think about what you’re doing that really keeps your customers coming back for more and what makes you stand out from the competition. Ideally, this should align with the needs you identified in Step 5. If you currently own a restaurant, what are the aspects they like about it? Do they enjoy the atmosphere? Is it a great location? What about the service? Are you known for specific items on your menu?

    

7. Bring it all together – Now that you have an idea of what you’re trying to accomplish, who your customers are, and your competitive strengths as an establishment, it’s time to put all of it to use by launching your restaurant marketing campaign.

5 Effective Restaurant Marketing Ideas and Tactics 

You have a restaurant marketing plan; now it’s time to implement it. Here are 5 tactics and tools you should consider using to reach your key audiences: 

1. Tap into social media

This is probably a given. Though there are plenty of social media platforms out there, Instagram is the best for marketing your restaurant, and Facebook comes in a close second. Posting high-quality photos of your dishes and drink offerings is the way to go, along with short videos of your friendly staff and events going on at your eatery. Here’s a great guide to get you started. 

2. Build a website or online store

In 2020, a clean, professional-looking website is a must. A website makes it easy for your current and potential customers to find you. Items to include on your website are high-quality images of your establishment and the food, along with contact info and location, a current and scannable online menu, online ordering capabilities (especially during Covid) and if you really want to get people talking, an online store with cool swag. 

3. Invest in SEO

Building a website is one thing; making sure people actually discover you online is another. 

Let’s say you’re a pizza chain in Philadelphia. If someone performs a Google search for “best pizza in Philly,” you want to make sure you show up at the top of those search results. Take time to research guidelines and best practices as you’re building your site and putting content on it — or consult an expert to help you optimize.

4. Leverage word of mouth

Speaking of people talking, according to Atlanta-based word-of-mouth marketing agency Fizz, 76% of Americans don’t believe ads, 92% say word of mouth is the best source for product ideas and 15% of every conversation includes a branded product or service. Word of mouth is exactly what it sounds like: people talking about your restaurant to other people.

Though it can be done in-person (with the right strategy), it can be done online as well. Think about when you shop on Amazon. How often do you read the reviews for products in which you’re not familiar? Most likely, quite a bit.

A great customer review on Yelp!, social media or even on your own website can increase your traffic exponentially. Because everyone at some point asks for restaurant recommendations, whether they’re travelling or they’re just tired of the same old place in their own town. 

Keep in mind, though, to pull off word-of-mouth marketing you need a strategy. If you want to learn more, Fizz even has a book. 

5. Create a loyalty program

This is a great tactic if you’re trying to build up repeat business. While there are a variety of software platforms that make this easy to do — in fact, your POS or restaurant management software may have a built-in capability — you can also make it as simple as having a punch card. 

How To Measure Success: Restaurant Marketing KPIs 

You’ve got your tactics and strategy; now you need to measure your results. To do this, you’ll need KPIs. Otherwise known as Key Performance Indicators, KPIs are measurable data to help you see how well your restaurant marketing strategy is working. They help you quickly determine which tactics are working and which aren’t so you can revise your strategy as you go along. Go beyond revenue; a few KPIs to keep track of when marketing your restaurant include: 

• Website traffic 
• Social media traffic and interactions
• Customer reviews

For an in-depth look at these and more KPIs, here’s a great guide. 

Effective Restaurant Marketing in 2020: Get Creative

In 2020, there are more marketing channels and tools at your disposal than ever before. But there’s also more competition. That means you’ve got to get creative and let your KPIs be your guide. Remember: stay true to your brand, keep your audience front and center — and get marketing!

In 2019, four major restaurant chains—Krystal, Moe’s, McAlister’s Deli, and Schlotzky’s—were hacked. Four million of their customers’ credit and debit card information was being bought and sold in an underground cybercrime marketplace, according to an article published by KrebsOnSecurity.  

It’s no wonder The Ascent claims that last year was the worst year in history for identity theft reports, marking an increase for the second year in a row. Data breaches play a huge role in this alarming trend. 

As a restaurant owner, you’re probably familiar with restaurant PCI compliance — and if you find it confusing, you’re not alone. But it’s important that you understand the basics for the sake of your restaurant’s security and your customer’s safety — especially with the increase in digital transactions due to the pandemic. 

What is PCI compliance?

Back in 2004, payment fraud was on the rise. To combat this growing problem, credit card industry leaders such as Mastercard, Discover, American Express, and Visa, along with the Japan Credit Bureau, brainstormed ways to help protect their cardholders against identity fraud. They introduced PCI DSS 1.0 in December of that year, which required all merchants that accept credit cards to comply with this new set of standards. 

Otherwise known as Payment Card Industry Data Security Standards Compliance, or PCI Compliance, these standards have been updated over the years to conform to industry trends and emerging technology. PCI compliance protects all businesses that process credit card information and the customers that patronize them from data breaches and identity theft. 

Why does PCI compliance matter for restaurants and bars?

You’re well aware that providing amazing food, an exceptional guest experience, great ambiance, and top-notch service is part of why customers keep coming back to your establishment. But if customers don’t feel safe using their debit or credit cards due to potential theft, then that tarnishes your hard-won reputation as a trusted and reliable restaurant of choice. 

As a restaurant owner, you’re responsible for your customers’ debit and credit card information the moment it’s swiped into your system. PCI compliance ensures that this info is protected at all times. If your restaurant is not in compliance, it could result in high fees from banks, credit card companies, and other merchants. On average, a data breach can cost a business an estimated $3.92 million, according to IBM, which would hurt a large-chain restaurant significantly and force closure, undoubtedly, for owners of smaller chains or neighborhood restaurants and bars. The best thing you can do is to closely follow all restaurant PCI compliance guidelines. 

PCI compliance requirements

There are 12 PCI compliance requirements you need to implement to ensure your restaurant is protected from credit and debit card theft. To stay compliant you should: 

1. Install and maintain a firewall configuration to protect cardholder data
2. Protect stored cardholder data
3. Do not use vendor-supplied defaults for system passwords and other security parameters
4. Encrypt transmission of cardholder data across open, public networks
5. Use and regularly update anti-virus software on all systems commonly affected by malware
6. Develop and maintain secure systems and applications
7. Restrict access to cardholder data by business need-to-know
8. Assign a unique ID to each person with computer access
9. Restrict physical access to cardholder data
10. Track and monitor all access to network resources and cardholder data
11. Conduct vulnerability scans and penetrations tests
12. Maintain a policy that addresses information security

Making your restaurant PCI compliant

The 12 steps above may seem daunting. To help with this process, reach out to your credit card processors, as they most likely have tools to help you become compliant. But be aware that while credit card processors claim their hardware and software tools are PCI compliant, this doesn’t mean your restaurant will be in the clear. It’s your responsibility to make sure you are maintaining a fully-compliant environment as well as using a compliant processor. 

In the case your credit card processor doesn’t provide the tools you need to become PCI compliant, Level 4 merchants, which is what you most likely fall under, can establish compliance through a self-assessment questionnaire (SAQ). There are a number of different SAQs you can use, so use this guide to help you find the right one for your restaurant. 

After you’ve found the correct SAQ version to use, complete it and then do these steps to establish restaurant PCI compliance: 

1. Complete a vulnerability scan with a PCI Approved Scanning Vendor (ASV), which is an organization with a set of security services and tools to conduct vulnerability scans that validate PCI compliance. Here is a list of approved ASVs. 
2. Submit your SAQ to the bank you use for your restaurant. 

From there, you’ll simply wait to hear back if you’ve been certified PCI compliant, which can take a few weeks. 

Keeping your restaurant PCI compliant is essential to the security of your paying customers and for the reputation of your establishment. If you’re not compliant, or you’re unsure if you’re meeting all of the criteria, do it as soon as you can. The livelihood of your business could depend on it. 

If you’re starting up your own restaurant, bar, brewery, or event space and you plan on serving alcohol, you’re going to need a liquor license. It doesn’t matter the state where your business will be located: it’s always illegal to serve alcohol without a proper license. 

But getting a liquor license can be difficult and time-consuming. And once you have one, you can lose it if you violate state guidelines, whether it’s over-serving your customers, serving minors, selling alcohol during restricted time frames, or disorderly conduct in your establishment. And now with Covid-19 in the picture, state liquor authorities are temporarily revoking liquor licenses from restaurants and bars violating mandated health and safety protocols related to the pandemic.

Here’s everything you need to know about getting a liquor license in 2020: what it is, how much it costs, and what to expect from the process. 

What is a liquor license?

A liquor license makes it legal for your establishment to sell alcohol. Liquor licenses are issued by the state in which your business operates, as different states have different regulations relating to alcohol sales. Requiring restaurants and bars to obtain a liquor license makes it possible for the state and municipal government to enforce their alcohol policies.

What kind of liquor license do I need?

The type of license you need depends on how you sell or serve alcohol. The two primary “categories” are on-license and off-license.

• On-license: This is for businesses that are selling or serving alcohol to be consumed on-premises. (Also called on-premise or on-sale licenses.) This is the type of license that a restaurant or bar needs to obtain.
• Off-license: Specifically for businesses selling alcohol to be consumed elsewhere. Liquor stores, wine shops, and grocery and convenience stores are all examples of businesses that sell alcohol for “carry-out,” requiring an off-license.

There are several types of on-licenses that restaurants and bars may need to apply for, depending on the type of alcohol you’re serving and the manner in which you’re serving it. A few common examples:

• Restaurant liquor license: This is generally known as the “all liquor license” because it allows a business to serve all types of alcohol
• Beer and wine liquor license: Unlike the “all liquor license,” a beer and wine liquor license doesn’t permit you to sell stronger spirits.
• Tavern liquor license: This is commonly used for restaurants that serve both food and alcohol but have at least 50% of sales generated solely from liquor. 
• Server license: Some jurisdictions require individual servers to apply for a server license in addition to a liquor license. Any staff serving alcohol of any kind must take a liquor class prior to getting this license, which educates them on the kinds of alcohol there is, the legal amounts in which to serve it according to the state, and DUI and DWI laws. 

How much does a liquor license cost?

How much a liquor license costs depends on the state you’re operating in and the type of license you’re applying for. The range can be anywhere from $50 to more than $300,000. The average, however, is around $1,400. 

Keep in mind that you might be expected to pay additional processing fees depending on your local regulations. Some states have Liquor License Quotas, which means that only a certain number of licenses can be in use at the same time, depending on the population of the area. If that’s the case, then a new liquor license can be more expensive due to limited supplies. 

How do I apply for a liquor license? 

Applying for and obtaining a liquor license is a bit of process. There are a number of steps you have to take (and hoops you have to jump through) not only to get your license, but to maintain it.

• Know your state’s liquor laws 

Before you can apply for a liquor license, you have to know what you’re applying for. Remember, there are different licenses available depending on what kind of establishment you’re opening: a restaurant, a tavern or bar, or a liquor store. Also be sure to brush up on any additional requirements your city or county may have in place. You can consult your local Alcohol Beverage Control (ABC) board for this information, or you can check with your state’s alcohol or liquor agency.

• Get all of your business permits

Before you apply for your liquor license, check to see what kinds of permits you’ll need for your application. Here again, your local ABC board can be a great resource. Check their website to see which ones you’ll need. (Once you have them, keep all of the paperwork secure and on-hand, as you’ll most likely have to present it.)

• Apply with your local ABC board

Once you’re familiar with your local laws and know the type of license you’ll need, then it’s time to apply with ABC board in your area. You can do so in person, or in some cases, you may be able to apply online. 

• Defend your proposal 

You might need to defend your case as to why you want to sell alcohol in a public hearing if a member of your local community protests your application. 

• Renew your liquor license and permits

Applying for a liquor license isn’t just a one-time thing. Expect to renew your license and permits every one to three years. And keep in mind: if you’re found to be in violation of liquor laws, you could have your license suspended or revoked altogether. 

How long does it take to get a liquor license?

Like we said: getting your liquor license is a process. In some cases, expect to wait weeks or even months for your application to be processed and approved. The standard waiting time to hear back from your local ABC board is up to six months.  If you live in a state with quotas, it can take longer, as you’ll have to wait for another business to forfeit theirs (or you can try to buy one on the secondary market).

So if you know you want the option to sell or serve alcohol, our advice is apply for your license as soon as you can in your startup process.

Liquor licenses: worth the hassle?

Getting your liquor license requires a lot of patience and planning — and it can be a financial investment, too. Beyond obtaining the license itself, there are other costs that go into serving alcohol, like equipment, server training, building out a drink menu, etc.

For bars, obviously, getting a liquor license is a no-brainer; for other establishments, you’ve got to decide whether it’s worth the hassle on and cost on the front end as well as the effort to maintain it. Take into account your location, hours, menu, and customer base/demographic. For example, a family or kid-focused establishment may choose not to serve alcohol. The same goes for restaurants that operate only on weekdays, during regular business hours — like breakfast spots, or cafes and coffeehouses catering to working professionals.

But many customers expect alcohol as an option, especially if your restaurant operates on evenings and weekends, or if your menu lends itself to alcohol pairings. It’s also important to note that alcohol sales generally have higher margins than food sales, so financially speaking, a liquor license is often worth the up-front hassle. 

Bottom line: before pursuing a liquor license, be sure that serving alcohol in your establishment is actually going to benefit your business. If you decide to move forward, don’t be intimidated by the process. Simply do your research on the front-end: determine the licenses you need, learn about the regulations that apply, and understand the associated costs and timeline. 

(Need help staffing your bar? Read our tips for hiring a bar manager here!)