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Someone made a mistake with the sign. Not all of TABC's employees are as up on the finer points of this law as I would like. I am guessing the inspector just grabbed the wrong sign, though it could also be a misunderstanding on the part of the licensee or the inspector. Without being involved in the case itself, I can't tell who/where the mistake was made, just see the final results as a mistake.

Vitticeps,

You made one minor mistake in your calculations that might make a difference. The sales that are not alcohol do not have to be food. They could be souvenirs or similar items, and even ore likely they are ticket sales. The law says all income, so ticket sales get included. The TABC app asks for income from alcohol sales, food, and other.

In my experience, most live music venues are actually blue licenses because they include the gate in their total. The only places that should be 51% are those places that actually look like the traditional image of a bar - someplace where someone goes just for the drink.