On Premise Alcohol Consumption at Liquor Stores...

[kg5ie]

I was asked a question by a student in a class I held yesterday, and having no clue what the answer was I admitted that and promised to post it here.



More and more liquor stores are setting up kiosks manned by their distributors offering free samples of liquor, wine, beer, etc. I was in Total Wine and Sprits the other day and they had 5 different tasting stations active. While it is surely true that the amount given as a taste is VERY small, it is still indeed "on premise consumption", and obviously the liquor store makes more than 51% of its revenue on alcohol.

So the question was: "If a liquor store is giving away alcohol, and it is being consumed on premise, does this change the relation to a CHL holder? Can you still carry?". Or , asked in my words, does it become a 51% premise and we would be covered by ineffective notification since the sign on the door is temporarily wrong ? This is what I proposed as the answer, but I still admitted I had no clue. I also said I really don't know what law allows them to do it in the first place other than the fact they give it away and don't charge you. But that is another topic.

[JALLEN]

Even HEB is doing that now.

When I was a kid, HEB didn't even sell beer, and was closed on Sundays.

Obviously HEB isn't close to the 51% of sales, though.

[WildBill]

I was asked a question by a student in a class I held yesterday, and having no clue what the answer was I admitted that and promised to post it here.



More and more liquor stores are setting up kiosks manned by their distributors offering free samples of liquor, wine, beer, etc. I was in Total Wine and Sprits the other day and they had 5 different tasting stations active. While it is surely true that the amount given as a taste is VERY small, it is still indeed "on premise consumption", and obviously the liquor store makes more than 51% of its revenue on alcohol.

So the question was: "If a liquor store is giving away alcohol, and it is being consumed on premise, does this change the relation to a CHL holder? Can you still carry?". Or , asked in my words, does it become a 51% premise and we would be covered by ineffective notification since the sign on the door is temporarily wrong ? This is what I proposed as the answer, but I still admitted I had no clue. I also said I really don't know what law allows them to do it in the first place other than the fact they give it away and don't charge you. But that is another topic.

The 51% rule is based on the percentage of sales of liquor sold for consumption on site. Since they are giving away samples for free, then it would be a 0% premise. IANAL.

See the TABC website for signage requirements http://www.tabc.state.tx.us/laws/sign_requirements.asp" onclick="window.open(this.href);return false;

[sjfcontrol]

All you need to do is look at the liquor license. A liquor store show show "sign = blue". I'd think your good to carry.
This is not legal advice...

[The_Busy_Mom]

The 51% rule is based on the percentage of sales of liquor sold for consumption on site. Since they are giving away samples for free, then it would be a 0% premise. IANAL.

See the TABC website for signage requirements http://www.tabc.state.tx.us/laws/sign_requirements.asp" onclick="window.open(this.href);return false;

THIS^^^^

The 51% means 51% of the business' revenue is derived from the sale of alcohol for on-site consumption. A tasting station would be no different than going into a restaurant where people were buying drinks, but the restaurant did not derive at least 51% of it's revenue from the sale of on-site consumption alcohol (like Chili's or TGI Friday's). A free tasting station should not affect the CHL. However, partaking of that free station, and becoming intoxicated while carrying, would be a no-no. But we'll save the whole 'intoxication' thing for the other threads that are already going!

TBM

[Abraham]

I've seen signs stating words to the effect that say "no consumption of alcoholic beverages on this property allowed" posted outside convenience stores and liquor stores - so how do they get away with offering free samples of booze to be consumed?

Or, do the powers that be simply turn a blind eye to this relatively minor infraction?

[WildBill]

I've seen signs stating words to the effect that say "no consumption of alcoholic beverages on this property allowed" posted outside convenience stores and liquor stores - so how do they get away with offering free samples of booze to be consumed?

Or, do the powers that be simply turn a blind eye to this relatively minor infraction?

The sign means that they are an establishment that can not sell alcoholic beverages for consumption on the premises so the purchaser cannot drink it there.

Can an establishment give away free alcoholic beverages to customers without having a permit?

It is legal to provide free alcoholic beverages without a permit. However, to be truly “free” it must be available to any adult who walks in the door and requests it. If it is only available to paying customers, the assumption is that the cost of the alcohol is included in the price of the service. In this case, the retailer would be “selling” the wine, and a permit would be required. When the establishment provides the alcoholic beverage, there cannot be any expectation of receiving money. The establishment cannot ask for a “donation” or “tip.” If the alcoholic beverage will only be available to paying guests, then the establishment will need a permit.

http://www.tabc.state.tx.us/faq/general.asp" onclick="window.open(this.href);return false;

[Abraham]

WildBill,

Terrific clarification!

Thanks!