What Is A Type 47 Liquor License? California Cost & Requirements Guide
Opening a restaurant or bar in California means confronting one of the most critical decisions you’ll make: securing the right liquor license for your business. The California Type 47 liquor license stands as the premier permit for full-service restaurants wanting to legally serve beer, wine, and distilled spirits to their customers. Understanding this license type can mean the difference between a thriving establishment and costly compliance mistakes that threaten your investment. This comprehensive guide walks you through everything about Type 47 liquor licenses—from application requirements and costs to transfer procedures and compliance obligations—giving you the knowledge needed to confidently navigate California’s complex alcohol licensing landscape and establish your business on solid legal ground.
What is a type 47 liquor license in California?
The Type 47 liquor license represents an on-sale general eating place permit issued by the California Department of Alcoholic Beverage Control. This license type authorizes restaurants to sell beer and wine, plus distilled spirits for consumption on the licensed premises. The Type 47 license distinguishes itself from other California liquor licenses through its specific requirement that holders must maintain the facility as a bona fide eating place with suitable kitchen facilities and actual, substantial food sales.
Licensed premises operating under a Type 47 may also sell beer and wine for consumption off the premises where sold. This flexibility makes the license particularly valuable for restaurants that want to offer both dine-in service and takeout alcohol sales. Minors are permitted on premises operating with this license type, making it suitable for family restaurants and establishments that serve customers of all ages during regular business hours.
The Department of Alcoholic Beverage Control classifies the Type 47 as a “general license,” meaning it falls under population-based quota restrictions. The state of California limits the number of these permits available in each county based on population ratios, creating scarcity that significantly impacts market value. This limited availability transforms the Type 47 license into one of the most sought-after and expensive types of liquor licenses in California, with existing licenses often selling for hundreds of thousands of dollars in high-demand markets.
What’s the difference between type 47 and 48 liquor licenses in California?
Type 47 and Type 48 licenses both authorize the sale of all main types of liquor, including beer, wine, and distilled spirits. However, these two license types serve fundamentally different types of establishments with distinct operational requirements. The Type 48 license, officially designated as an on-sale general public premises permit, targets bars, nightclubs, and similar venues where food service isn’t the primary business activity.
The most significant difference lies in food service requirements. Type 47 license holders must operate as bona fide eating places with functioning kitchens and menus offering substantial meals. The ABC expects Type 47 establishments to generate the majority of their revenue from food sales rather than alcohol sales. Type 48 licenses carry no such food service obligation, allowing venues to focus exclusively on beverage service without maintaining kitchen facilities or offering prepared meals.
Minors face different access restrictions under these license types. Type 47 premises allow patrons of all ages since they operate primarily as restaurants where families dine together. Type 48 establishments generally prohibit minors from entering and remaining on the premises, exceptions exist under specific circumstances such as musicians performing. This fundamental distinction affects everything from the type of establishment you can operate to your potential customer base and hours of operation.
How much is a type 42 liquor license in California?
The Type 42 license, formally known as an on-sale beer and wine public premises license, authorizes businesses to sell beer and wine for consumption both on and off the licensed premises. This license type is commonly used by taverns, bars, and social clubs that don’t want to serve distilled spirits and don’t offer substantial food service. The application fee for a Type 42 permit typically runs approximately $985, though applicants should verify current fees with the ABC as rates adjust periodically based on inflation.
Type 42 licenses differ substantially from both Type 47 and Type 48 licenses in their scope of authorized alcoholic beverages. Where general licenses permit the sale of distilled spirits for consumption, Type 42 permits restrict sales to beer and wine only. This limitation makes the license more affordable and sometimes easier to secure than full liquor licenses, but it also constrains the types of cocktails and mixed drinks you can offer customers.
Establishments holding Type 42 licenses may not have distilled spirits on the premises at any time. Minors cannot enter or remain on Type 42 licensed premises, similar to the restrictions for Type 48 establishments. Some venue owners deliberately choose this license type because their business model focuses on craft beer and wine sales without the added complexity and cost associated with full liquor service. The Type 42 represents an affordable middle ground for operators who want to sell alcohol in california without the full investment required for a general license.
What is liquor 48?
Liquor 48 refers to the Type 48 liquor license, an on-sale general public premises permit that authorizes the retail sale of beer, wine, and distilled spirits for consumption on the licensed premises. The “48” designation is simply the license type number assigned by the California ABC, and the term “liquor 48” has become shorthand in the industry for this specific permit category. Type 48 licenses suit businesses where alcohol consumption represents the primary activity rather than an accompaniment to dining.
The Type 48 license allows off-sale privileges for beer and wine but not for distilled spirits. This means bars and nightclubs can sell unopened containers of beer and wine for customers to take home, but bottled spirits must remain on the premises for consumption only. This partial off-sale authorization provides additional revenue opportunities while maintaining tighter controls on hard alcohol distribution.
Obtaining a Type 48 license involves the same general application process as other general licenses, but the lack of food service requirements eliminates certain compliance obligations. Applicants don’t need to demonstrate kitchen facilities or food sales capacity. However, the 48 liquor license still falls under the same population quota restrictions as Type 47, making it similarly scarce and valuable. Many bars and entertainment venues specifically target this license type because it aligns perfectly with their business model of providing a social drinking environment without substantial food service.
Understanding Type 47 Liquor License Costs and Fees
The license cost for a Type 47 permit in California reflects multiple fee components that combine to create your total investment. The application fee alone starts at approximately $16,560 for priority applications through the ABC’s annual lottery system. This substantial application fee covers the Department of Alcoholic Beverage Control’s administrative costs for processing applications, conducting background investigations, and reviewing premises.
Annual fees add another layer of ongoing expenses that license holders must budget for each year. These renewal fees vary based on the population of the jurisdiction where your licensed premises operates. Larger cities generally carry higher annual fees, with establishments in metropolitan areas paying significantly more than those in rural communities. The annual fee structure includes base charges plus mandatory surcharges for programs like the ABC Appeals Board and California Highway Patrol initiatives.
Beyond official fees, the real license cost often involves purchasing an existing license through a transfer application. Type 47 liquor licenses for sale in California’s competitive markets routinely command prices ranging from $100,000 to over $400,000 depending on location. High-demand areas like San Francisco, Los Angeles, and San Diego see the highest valuations, while less populated regions offer more affordably priced licenses. Working with professionals at license locators or specialized brokers helps identify available licenses and negotiate fair market prices.
Application Requirements and Timeline for Type 47 Licenses
Applying for a new Type 47 license requires extensive documentation and patience throughout a lengthy review process. The California ABC mandates that applicants provide personal affidavits, financial statements, fingerprints for background checks, detailed premise diagrams, and proof of property rights. Every person holding 10% or more ownership interest in the business entity must complete individual background investigations.
The Department of Alcoholic Beverage Control processes applications through several distinct phases. Initial review confirms that all required documents are present and properly completed. Premises inspection ensures the location complies with local zoning regulations and meets ABC operational standards. Public posting requirements mandate that a notice of intended transfer or new application remain visible at the premises for 30 consecutive days, allowing community members to file protests.
Timeline expectations for Type 47 applications range from 60 to 120 days minimum, though complex situations extend significantly longer. Applications requiring conditional use permits or facing community protests often take six months or more to resolve. The ABC processes priority applications for new general licenses only once per year through a lottery system, adding another layer of timing consideration. Planning your application well in advance of your intended opening date prevents expensive delays and keeps your business launch on schedule.
Securing a License Through Transfer vs. New Application
Most California establishments acquire their Type 47 license through transfer rather than applying for a new license. The scarcity of general licenses under population quota restrictions makes new permits extremely difficult to obtain. The annual priority registration lottery offers limited new general licenses, with demand far exceeding supply in most desirable markets. Transfer applications provide a more reliable path to licensure, though at substantially higher cost.
Person to person transfers represent the most common transaction type when purchasing an existing license. This process involves both the current license holder and the transferee filing joint applications with the ABC. The transferee undergoes the same thorough background investigation and qualification review as any new applicant. The transfer application fee adds to your costs, but securing an existing license eliminates the uncertainty of lottery drawings.
Premises to premises transfers occur when a license holder relocates their business to a new location within the same county. These transfers require ABC approval and confirmation that the new premises meets all regulatory requirements. Some license transfers involve both ownership changes and location changes simultaneously, creating what the ABC calls “double transfers.” Understanding the license transfer process and working with experienced escrow professionals who handle business escrow transactions protects both buyers and sellers throughout the complex licensing process.
Food Service Requirements for Type 47 Compliance
Operating under a Type 47 liquor license obligates you to maintain your establishment as a bona fide eating place at all times. The ABC defines this requirement through specific operational standards that focus on actual food service rather than nominal compliance. Your restaurant must maintain suitable kitchen facilities equipped with the necessary appliances, cookware, and storage to prepare and serve meals.
The type of establishment you operate must prioritize food sales over alcohol sales to maintain compliance with Type 47 requirements. While the ABC doesn’t mandate a specific percentage split between food and beverage revenue, they expect substantial meal sales throughout your operating hours. Menus should offer a variety of complete meals beyond simple appetizers or bar snacks. Attempting to operate primarily as a drinking establishment under a Type 47 license violates permit conditions and invites ABC enforcement action.
Kitchen facility standards require functional equipment capable of meal preparation. A microwave and ready-made sandwiches don’t satisfy the bona fide eating place requirement. The Department of Alcoholic Beverage Control expects to find stoves, ovens, refrigeration, and prep areas typical of actual restaurants. Regular food inspections by health departments provide secondary verification that your kitchen operates legitimately. Maintain your license by treating the food service component seriously and investing in proper kitchen infrastructure and trained culinary staff.
Managing License Transfer Applications and Escrow
Transferring a liquor license in california involves coordinated effort among buyers, sellers, the ABC, and specialized escrow companies. Standard real estate escrow companies often lack experience with liquor license transactions, making it essential to work with escrow agents familiar with ABC requirements and timelines. These professionals manage the complex documentation flow and ensure all parties meet their obligations before funds change hands.
The transfer application submitted to the ABC must include signatures from both transferor and transferee. Notarized affidavits, background questionnaires, fingerprint cards, and premise diagrams all flow through the escrow process. The escrow account protects both parties by holding funds until the ABC issues approval for the license transfer. This structure prevents situations where buyers pay for licenses they never receive or sellers surrender permits without receiving payment.
Timeline coordination becomes critical when transfer delays impact business operations. Temporary permits allow some transferees to begin limited operations while awaiting final ABC approval. However, not all transfers qualify for temporary authorization, and violations during the temporary period can jeopardize the entire transaction. Professional guidance from license locators can help navigate the ABC license transfer process efficiently, identifying potential issues before they become deal-breaking problems.
Comparing Type 47 with Other Common California License Types
Understanding how Type 47 compares to alternative license types helps you select the license you need for your specific business model. The Type 20 license authorizes off-sale beer and wine sales, making it perfect for grocery stores and convenience shops. Type 21 licenses permit off-sale of all alcoholic beverages, serving liquor stores and package retailers. These off-sale permits cost substantially less than general licenses and don’t require food service obligations.
Type 41 licenses authorize on-sale of beer and wine at eating places, providing a more affordable option for restaurants that don’t want to serve distilled spirits. This license type shares the Type 47 requirement for food service but costs significantly less to acquire. The beer and wine license limitation may suit family restaurants, cafes, and bistros where cocktail service isn’t part of the concept.
The Type 48 license most directly compares to Type 47, offering the same scope of authorized alcoholic beverages but targeting different type of license applicants. Bars and nightclubs typically pursue Type 48 rather than Type 47 specifically because they don’t want food service obligations. The different types of liquor licenses each serve distinct market segments, and choosing incorrectly creates compliance issues or operational limitations. California ABC regulations provide detailed information about each license type to help applicants secure the appropriate permit for their intended use.
Maintaining Compliance and Protecting Your Type 47 Investment
Protecting your substantial investment in a Type 47 liquor license requires ongoing attention to ABC regulations and compliance obligations. The California ABC enforces strict rules covering everything from employee training to advertising practices. Violations can result in fines, license suspensions, or even permanent revocation—destroying hundreds of thousands of dollars in license value and forcing business closure.
Responsible Beverage Service training became mandatory for all alcohol servers and their managers. California law requires that anyone who serves, sells, or supervises the sale of alcoholic beverages complete ABC-approved RBS training and obtain certification. Establishments must verify that all employees working 21 years of age or older have current RBS certifications and maintain documentation proving compliance.
Regular compliance audits help identify potential violations before they attract ABC attention. Review your operational procedures quarterly to ensure policies align with current regulations. Common violation areas include overserving intoxicated patrons, failing to check identification properly, allowing underage drinking, and operating outside permitted hours. Let license locators or compliance consultants conduct annual reviews of your practices, providing expert recommendations for improvement. The various types of liquor licenses each carry specific compliance requirements, so make certain you understand every obligation attached to your Type 47 permit. Proactive compliance management protects your license for your business and prevents the devastating consequences of serious violations.
The Role of License Brokers and Professional Assistance
Successfully navigating the California liquor licensing process often requires professional guidance from experienced license brokers and attorneys. These specialists understand the intricacies of ABC regulations, local ordinances, and market conditions that impact license availability and pricing. License locators broker the best deals by maintaining networks of buyers and sellers, identifying available permits before they reach the general market.
Professional brokers provide critical services throughout the entire liquor licensing process. They conduct license searches to identify existing licenses in your target market, perform due diligence to verify license status and any pending violations, and negotiate purchase prices between parties. Their knowledge of different type of licenses ensures you pursue the correct permit for your establishment. Experience with the ABC helps brokers anticipate processing timelines and potential obstacles.
The professionals at license locators justify their fees through the value they deliver. Expert guidance reduces application errors that cause delays or denials. Market knowledge prevents overpaying for licenses or accepting unfavorable transaction terms. Many brokers maintain relationships with escrow companies, attorneys, and ABC officials that smooth the approval process. First-time applicants benefit most from professional assistance, but even experienced operators appreciate having specialists handle complex transactions while they focus on building their businesses.
Key Takeaways: Essential Points About Type 47 Liquor Licenses
- Type 47 licenses authorize full liquor service – This permit allows restaurants to sell beer, wine, and distilled spirits for on-premises consumption, plus beer and wine for off-premises sales
- Substantial costs require significant investment – Application fees exceed $16,000, while purchasing existing licenses often requires $100,000 to $400,000 or more depending on location
- Bona fide eating place requirements are mandatory – Licensees must maintain functional kitchens, offer substantial meal menus, and prioritize food sales over alcohol sales
- Minors may remain on Type 47 premises – Unlike Type 48 licenses, Type 47 permits allow customers of all ages, making them suitable for family restaurants
- Population quotas create license scarcity – The state limits the number of general licenses available, making existing licenses valuable assets
- Transfer applications provide the most reliable path – Buying existing licenses proves more practical than competing in annual lottery drawings for new permits
- Food service distinguishes Type 47 from Type 48 – The primary difference between these general licenses involves food service requirements and venue type
- Multiple license types serve different business models – Understanding all different types of liquor licenses helps operators select the correct permit for their establishment
- Compliance obligations continue indefinitely – Maintaining RBS certifications, following service regulations, and adhering to operational standards protects license value
- Professional guidance streamlines the process – License brokers, specialized attorneys, and experienced escrow companies provide expertise that prevents costly mistakes
- ABC approval timelines require patience – Expect 60 to 120 days minimum for license processing, with complex situations taking substantially longer
- Transfer procedures involve multiple parties – Successful transfers require coordination among buyers, sellers, the ABC, escrow agents, and often legal counsel
- Proper license type selection prevents problems – Choosing the wrong license creates operational constraints or compliance violations that threaten your business
- License market values reflect location demand – Premium markets command premium prices, while less competitive areas offer more affordably priced licenses
- Ongoing annual fees supplement initial costs – Budget for recurring renewal fees that vary based on your establishment’s location and population
The Type 47 liquor license represents the gold standard for full-service restaurants in California, providing maximum flexibility for establishments that combine quality food service with comprehensive beverage programs. Success requires understanding the application process, recognizing the distinctions between various license types, and maintaining rigorous compliance with ABC regulations. Whether obtaining a new license through the priority lottery system, purchasing an existing license on the secondary market, or completing a person to person transfer, professional guidance and careful planning lead to better outcomes. The investment in a California liquor license is substantial, but for well-run restaurants offering exceptional dining experiences, the Type 47 permit becomes an invaluable business asset that enables growth and profitability for years to come.