The Small Business Times

Things You Need To Know Before Starting A Hospitality Business In Texas 

Opening a restaurant, bar, food truck, or any hospitality business in Texas is ideal since the area provides fertile ground for budding entrepreneurs and food aficionados.

Additionally, the state has a diverse range of locales and a client base that values exceptional food and hosts a number of tourists. Popular culinary fads include some of the greatest barbecues in the nation, Cajun-Creole cuisine, Tex-Mex cuisine, and Gulf Coast fresh seafood meals.

Moreover, if you choose to take your cooking abilities on the road, you can try to sell your dishes at traditional restaurants, gastropubs, and food trucks. Ideally, you can pair these gastronomic options with lovely accommodations and offer exciting activities for the ultimate experience.

Small communities, busy metropolises, ranch country, riverside settings, coastal and port cities, and even the famed Texas badlands provide tremendous potential for food lovers, residents, and tourists.

However, slow down your houses as it is unwise to dive into the business head-on. Instead, learn all there is to know about starting a hospitality business in Texas to ensure you land on solid ground on your first step. Here is everything you must take into consideration as an aspiring hospitality entrepreneur.

Select A Location

Everything revolves around the location. So, before deciding on a spot for your business, consider the following:

1. Your Personality

Are you formal? Casual? This can influence the sort of consumers you’re likely to attract.

2. Parking And Accessibility

If you’re drawing visitors, parking is less of a problem because they’re more likely to hail a cab or use Lyft or Uber. Tourists, on the other hand, are less inclined to return. 

3. Demographics

Different parts of your city appeal to different groups of people. If you want to attract college students, consider operating near a university. Set up a business in a more wealthy section of town if you’re going to attract higher-class clientele.

4. Rent And Utility Costs

Can you compensate for this in sales with the clients you’ll be attracting? Restaurant or pub utilities typically cost $3.75 per sq foot each year. With an average restaurant size of 4,000 square feet, a bar or restaurant manager may anticipate spending more than $1,000 per month on electricity and gasoline.

Related:  Does Dollar Tree Take Apple Pay?

5. Zoning Restrictions

Can you establish a bar here according to the restrictions and regulations? Your county could have a municipal law that prohibits the sale of alcoholic drinks within 300 feet of a private or public school, church, or public hospital, as permitted under the Texas Alcoholic Beverage Code.

Obtaining Texas Food Business Licenses

Texas does not demand a general business license to operate. Instead, depending on municipal restrictions, the government deals with business permits separately around the state.

As a food supplier, you’ll almost certainly need to ensure that your site is health code and ADA compliant. In addition, it is critical to verify with your regional business office to determine any special licensing needs or zoning limitations.

To collect state sales tax, you must register your company name, obtain a health permit, a Retail Food Operation Permit, and a Sales and Use Tax permit.

A permit for outdoor signs and awning insurance are also required. In addition, if you intend to sell alcohol, you must obtain a license from the Texas Alcoholic Beverage Commission.

Although obtaining a liquor license or a wine and beer license in Texas is more accessible than in many other states, a full liquor license can cost up to $400,000.

However, depending on the kind of license, location, restaurant size, and other considerations, most eateries may obtain an essential on-premises permit for $3,000 or less. A food truck cannot obtain a license to serve alcohol.

The Texas Alcoholic Beverage Commission may provide licenses to most restaurant operators in 45 to 60 days. The following qualifications are required for business owners or partial owners:

a. There have been no criminal convictions in the last five years.

b. There have been no moral turpitude infractions in the recent six months.

c. There have been no infractions of state liquor rules in the last two years.

Before applying for a TABC license, you must have all your other operational permissions, such as ARA site pre-approval, health permit, Fictitious Business Name registration, Certificate of occupancy, etc.

Related:  Twitter For Entrepreneurs: How To Use The Platform To Grow Your Business And Overcome Challenges

The Importance Of A Responsible Training TABC Certification

You’re most likely completing a TABC certification course since your employer requires it. But why is that? There are several reasons why becoming TABC certified is essential.

First and foremost, it is excellent training. Getting a Responsible Training’s TABC Certificate means gaining access to a wealth of vital knowledge.

The program material relates to your civil and criminal liabilities, employer’s liability, keeping your clients safe and out of danger, correctly inspecting IDs, when and how to cut individuals off, and much more.

Second, as the employer, you have a lot on the line, and becoming TABC accredited helps safeguard the company. 

Employers can use Safe Harbor to keep their alcohol license from being withdrawn if an employee violates the law by selling alcohol to a child or an inebriated person. To be entitled to Safe Harbor protection, the employer must satisfy several standards, one of which is TABC accreditation.

Many businesses want TABC certification for their staff since it can assist prevent infractions that result in heavy fines. In addition, when TABC-certified personnel breaks the law, the TABC may opt not to take administrative action against the company.

Furthermore, skilled and competent individuals who have been through the certification program are less likely to commit errors, lowering the likelihood that these difficulties would develop in the first place.


Despite recent difficulties, the restaurant and hospitality industries will continue to be crucial for our economy and society. As food service trends continue to vary, opportunities for exceptional new eateries to enter the market and capitalize on new customer interests arise.

The restaurant and bar industry is one of the most difficult to break into. It is, nevertheless, one of the most gratifying and rewarding. Food always draws people together, and offering a venue for people to interact and celebrate over a delicious meal has significant payback for you and your customer.

With that, you have all you need to know about starting a hospitality business in Texas.