What types of liquor licenses does Tennessee issue?

Tennessee issues a local beer permit for beer at 8% alcohol by weight or less, and TABC liquor-by-the-drink licenses for wine, spirits, and high-gravity beer. The liquor-by-the-drink types include the restaurant license, the wine-only restaurant license, the limited service restaurant license (commonly called a bar license), hotel-motel, caterer, special occasion, festival, and club licenses. State law also names specific premises types such as convention centers, sports facilities, motor speedways, museums, zoological institutions, theaters, community theaters, food halls, and restricted retail businesses.

What is the difference between a restaurant license and a bar license in Tennessee?

The restaurant license generally fits businesses that expect more revenue from food than from alcohol, and its annual fee runs from $650 to $1,200 based on seats. The limited service restaurant license, commonly called a bar license, fits businesses where prepared food makes up 50% or less of gross revenue, and its annual fee runs from $2,000 to $5,000, rising as food’s share of sales falls. Both require seating for at least 40 people at tables.

Do I need a separate permit to serve beer in Tennessee?

Yes. A TABC liquor-by-the-drink license does not cover standard beer. Beer at 8% alcohol by weight or less requires a permit from your city or county beer board, which costs a $250 application fee plus a $100 annual privilege tax. Most businesses that hold a liquor-by-the-drink license also carry a local beer permit.

Who can hold a special occasion license in Tennessee?

Only a bona fide charitable, nonprofit, or political organization producing its own fundraising event. An event company cannot use one, even when proceeds go to a charity. Each organization may hold 16 per calendar year, each good for a single 24-hour period, and applications need 2 weeks’ notice. The license costs $100 a day.

What if my business does not fit any Tennessee liquor license category?

Tennessee’s answer is the annual liquor omnibus bill, which adds individual venues to the law, most often to the definition of a “premier type tourist resort.” The 2026 omnibus, Public Chapter 1074, added 29 venues, each described so precisely that only a single property fits. The route runs on the legislative calendar, takes a sponsor and a precise description of the property, and passage only makes a venue eligible to apply through the TABC. Venues added as premier type tourist resorts pay a $2,000 annual fee. Check the existing categories first, since a venue with 40 seats at tables and a real food menu may already qualify as a restaurant or limited service restaurant.

Types of Liquor Licenses in Tennessee (2026 Guide)

Q: What is a limited service restaurant license in Tennessee?

A limited service restaurant license is the TABC license for businesses where prepared food makes up 50% or less of gross revenue. It requires 40 seats at tables, a menu of prepared food during regular hours, and a security plan approved by the TABC. Chips, popcorn, and similar snacks do not count as prepared food. The annual fee runs from $2,000 to $5,000 and resets each year based on a sworn statement of food and liquor revenue.

Current as of September 2026. License rules and fees can change, so confirm with the TABC before you apply.

Tennessee issues several kinds of liquor licenses, each written for a particular kind of business. The one you qualify for decides what you can pour, who you can serve, and what you pay every year.

For most hospitality businesses, 3 questions settle it:

What will you pour? Beer only, or wine and spirits too.
Where will your revenue come from? Mostly food, or mostly drinks.
Does your business match a category the law already names? Most do. Some never will.

This guide works through those questions in order. For the filing steps, see How to Get a Liquor License in Tennessee. For what each option costs in year 1, see How Much Does a Liquor License Cost in Tennessee?

Beer only: the local beer permit

If you will serve only beer at 8% alcohol by weight or less, you need a beer permit from your city or county beer board, and the TABC stays out of it. The permit costs a $250 application fee plus a $100 annual privilege tax.

Wine, spirits, or high-gravity beer requires a TABC liquor-by-the-drink license. Most businesses that hold one also carry a local beer permit, since the TABC license does not cover standard beer.

Mostly food: the restaurant license

The restaurant license generally fits businesses that expect more revenue from food than from alcohol. It requires meals that are regularly served, an adequate kitchen, and seating for at least 40 people at tables. The annual fee runs from $650 to $1,200 based on seats.

A wine-only restaurant license is available for restaurants that want to serve wine without spirits, at $270 to $350 a year.

Mostly drinks: the limited service restaurant license

Commonly called a bar license, the limited service restaurant license fits businesses where prepared food makes up 50% or less of gross revenue. It still requires 40 seats at tables, a menu of prepared food during regular hours, and a security plan approved by the TABC. Chips, popcorn, and similar snacks do not count as prepared food. See the TABC limited service restaurant page.

The annual fee rises as food’s share of sales falls, from $2,000 to $5,000, and it resets each year based on a sworn statement of your food and liquor revenue.

Choosing between the restaurant and bar licenses comes down to honest projections. Pick the license that matches how the business will run in year 2, since a menu that shrinks or a late-night crowd that grows can shift the revenue split.

Hotels and caterers

Hotel-motel license: priced by room count, $1,000 to $1,500 a year.
Caterer license: requires a permanent catering hall operated on an exclusive basis, a complete commercial kitchen (fixed stove or cooktop, oven, refrigerator, freezer, sink, and counter space), and a Tennessee Department of Health catering license unless the hall is licensed as a restaurant. Food must be served at every event, and the TABC must be notified at least 2 full business days before each one. $625 a year. See the TABC caterer page.

Events and fundraisers

Special occasion license: only for bona fide charitable, nonprofit, or political organizations producing their own fundraising event. An event company cannot use one, even when proceeds go to a charity. Each organization may hold 16 per calendar year, each good for a single 24-hour period, and applications need 2 weeks’ notice. $100 a day. See the TABC special occasion page.
Festival license: $1,000 a day, for qualifying festivals. The TABC festival page lists who qualifies.

Private clubs

A club license requires a nonprofit organized for pleasure, recreation, or other nonprofit purposes, with at least 100 dues-paying members, at least 2 years of operation as a nonprofit before applying, and kitchen and dining space. Service is limited to members and their guests. $500 a year. See the TABC club page.

Categories the law names by type

Tennessee law also lists specific kinds of premises that may be licensed, each with its own annual fee. Among them are convention centers, sports facilities, motor speedways, museums, zoological institutions, theaters, community theaters, food halls, and restricted retail businesses.

The restricted retail category is the one behind drinks at barbershops and salons, which 2026 law opened to any lawful patron, whether or not they are getting a service. Restricted retail businesses may not serve between 10 p.m. and 8 a.m. More on that change in New Tennessee Liquor Laws 2026.

What if your business fits none of them?

Plenty of formats do not fit the categories above cleanly: event barns, rafting outfitters, cigar lounges, and venues that mix lodging, recreation, and a bar. Tennessee’s answer is the annual liquor omnibus bill. Each session, the General Assembly adds individual venues to the law, most often to the definition of a “premier type tourist resort.”

This year’s omnibus, 2026 Public Chapter 1074 (Senate Bill 1620, signed May 27, 2026), added 29 venues. Each one is described so precisely that only a single property fits. One entry is a public nine-hole golf course on about 62 acres beside the Harpeth River, in a city of 83,450 to 83,460 people. Others describe a rafting resort on 5 acres, a cigar lounge in a building from 1900, a luxury car dealership, and a Dale Hollow Reservoir marina with 28 lodging units.

What that means for a business considering this route:

It runs on the legislative calendar. The session opens in January and bills move in the spring, so the work starts months ahead.
It takes a sponsor and a precise description of your property.
Passage makes you eligible to apply. You still apply through the TABC, pass inspection, and pay annual fees like everyone else, and your city or county still has to allow on-premise sales. Venues added as premier type tourist resorts pay a $2,000 annual fee.
Check the existing categories first. A venue with 40 seats at tables and a real food menu may already qualify as a restaurant or limited service restaurant.

Mistakes that cost time

Assuming the TABC license covers beer. Standard beer needs the local permit.
Choosing a license for this year’s menu instead of next year’s revenue mix.
Using a special occasion license for a for-profit event. Only the nonprofit that runs the event can hold one.
Chasing a legislative carve-out when an existing category already fits.

Where BevLaw Group fits

We help Tennessee hospitality businesses pick the license that matches how they actually operate, then handle the filing as part of our flat monthly plans. If your venue does not fit a standard category, we can tell you whether it already qualifies under an existing one before anyone starts down the legislative road.

If you are weighing your options now, it is worth a conversation before you apply.

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