Liquor-by-the-Drink Limited Service Restaurant License (bars with food sales of 50% or less): Nashville restaurant guide
Tennessee Alcoholic Beverage Commission
What it is
The TABC license for a bar-style business that serves prepared food but can't meet the restaurant rule of more than 50% food sales. It still needs 40 seats at tables, a prepared-food menu available during all hours, zoning that allows on-premises alcohol, a commission-approved security plan and adequate security during operating hours.
When a restaurant needs it
If spirits will be sold and food will be 50% or less of gross revenue (snacks like chips and popcorn don't count as food).
How to apply
Apply in RLPS with the restaurant document set plus the zoning letter and security plan; TABC inspects on site.
Documents you’ll need
- Same documents as the restaurant LBD license
- Zoning verification letter
- Security plan
- Projected food vs alcohol sales
Good to know
The annual fee is three to eight times a restaurant license, so many bars design the menu and kitchen to clear 50% food sales instead. Metro zoning also treats a 'bar or nightclub' as a different use from a restaurant (definition added February 2025).
Official source
TABC — Limited service restaurant license · TABC — Fee schedule
Answer a few questions about your space and get every permit in order, with a timeline, a cost range, walkthroughs, and every application filled in for you to sign with Open.
Last reviewed 2026-10-06. Guidance only, not legal advice.