Confusion over the definition of restaurant in Abbott’s June 26th Executive Order

bar stools

As a result of Governor Abbott’s June 26, 2020, Executive Order, many bar and restaurant owners have once again been forced to close their doors with little clarification on what requirements a business must meet to continue operating under the definition of restaurant under paragraph 6 of the Executive Order.

Food and Beverage Certificate (FB)

Many restaurants have been instructed that they must hold a subordinate food and beverage certificate (FB) issued by the TABC to operate under the Executive Order, but an FB is not actually required. Businesses that hold a TABC permit must meet the following requirements in order to operate for dine-in services at 50% of the businesses total occupancy:

  1. Have permanent food services facilities on the premises; and
  2. Derive less than 51% of the business’ gross revenue from the sale of alcoholic beverages.

To qualify for a food and beverage certificate, a business owner is required to maintain less than 60% alcohol revenues, vs 51% according to the executive order. Even though the under 51% alcohol revenue requirement is more stringent than the less than 60% alcohol revenue requirement to hold an FB, many permit holders do not hold an FB despite being in compliance with the executive order – and the application process to obtain an FB normally takes several weeks.

If you have a business that has been closed due to Governor Abbott’s 6-26 Executive Order and your business meets the requirements listed above, you should contact an attorney for assistance with negotiating the reopening of your business with the TABC.

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