Utah alcohol licensing for restaurants: what to ask before you apply

If your restaurant, cafe or bar plans to serve alcohol in Utah, the license is not a formality. Utah is a control state, which means the state itself buys and sells wine and spirits and sets many of the rules about how, where and by whom they can be served. The system has been loosened in stages, and in 2024 the legislature passed another set of changes. This guide explains the structure and the questions to put to the Department of Alcoholic Beverage Services (DABC) before you sign a lease or print a menu.

How does the state control alcohol?

The DABC operates the wholesale supply of wine and spirits and the state-run stores. A licensed restaurant buys its wine and liquor from the state, not from private distributors as in many states. Beer follows a different channel. For a business owner, that has three effects: your selection is limited to what the state stocks or can order, your ordering schedule follows the state's, and your costs are set by the state's pricing. Plan your drinks menu around what you can reliably get, not around a wish list. Ask the department how special orders work, how long they take and what the minimum order is, and keep a few reliable alternatives for each category in case a product is out of stock.

What license types exist?

Utah has separate licenses for different kinds of operation, including full-service restaurants, limited-service restaurants, beer-only licenses, bars and others, each with its own rules about food, seating and age. A restaurant license is built around serving meals, and a bar license is built around serving drinks. The rules for each type cover matters such as whether guests must order food, how much of your revenue must come from food and where guests may sit. The details have been changed repeatedly, so read the DABC's current license guide and ask which type fits your concept.

What changed in 2024?

House Bill 548, summarized by the state, increases the number of bar and full-service restaurant licenses available for a given population and allows canned cocktails at eligible licensed establishments. The state said most of its provisions took effect on May 1, 2024. If you have been waiting for a license to become available, check whether the new quotas have opened one in your area. Licenses have historically been limited in number, and availability can decide whether an alcohol program is possible at all.

What is the Zion curtain and does it affect your layout?

The Zion curtain was a barrier that hid the preparation of mixed drinks from diners. A 2017 reform made it optional and allowed alternatives such as a low wall or a separation of distance. The layout rules depend on your license type and the age of the building, and some restaurants that opened before the reform were treated differently. Before you design a bar, ask the DABC what it requires for your license, and have your contractor read the current rule. The rules have kept changing, so check for further changes.

What does staff need to do?

Utah requires people who serve alcohol to complete state-approved training, and the details of timing and renewal are set by the DABC. Ask the department what applies to servers, bartenders and managers, and keep training records on site. Train staff to check identification consistently and to refuse service to people who are underage or visibly intoxicated. Utah's drunk driving limit is lower than in most states, which makes careful service more important. A server who can explain the rules politely is an asset when visitors from other states are confused.

How do drinks affect your menu and pricing?

Because costs are set by the state, margins on wine and spirits can differ from what you would expect elsewhere, and some restaurants focus on beer, cocktails with house-made ingredients or non-alcoholic drinks. Happy hour and discount rules are restrictive in many states, and Utah has its own limits on how drinks may be promoted. Check what you are allowed to advertise before you print a flyer. Mocktails and craft sodas are a profitable, popular category in a state with many guests who do not drink.

What about tax and records?

Alcohol sales are part of your taxable sales, and the county restaurant tax applies to alcoholic beverages as well as food, as we explain in our guide to Utah's restaurant tax. Keep records of purchases from the state and of your sales by category, because the DABC audits licensees. Keep your license displayed and renew it on time.

What should you do first?

Call the DABC and ask which license fits your concept, whether one is available and what the application timeline is. Ask your landlord whether the building's zoning allows alcohol service and how far it is from schools, churches and parks, since distance rules can apply. Then draft your layout and menu. A lease that depends on getting a license should say so. It is also worth visiting a licensed restaurant in your area and asking the owner about the application process, how long it took and what surprised them. Owners who have been through it are usually generous with advice, and the DABC's staff can tell you what documents to bring, such as a lease, floor plan, background check forms and proof of the business entity.

More guides for your business:

• Utah food handler permits and certified food managers
• Utah sales tax and the 1 percent restaurant tax for food businesses
• Running a Utah restaurant through ski season, shoulder season and summer

More in the US guides for food businesses.