What licenses and permits are required to open a restaurant in Tennessee?

Opening a restaurant in Tennessee requires several licenses and permits, each with its own specific purpose, cost, and registration process. These include a license in accordance with the Tennessee Food, Drug and Cosmetic Act and Chapter 0080-04-13, a business license, and various types of Liquor-By-the-Drink (LBD) licenses depending on the type of alcoholic beverages you plan to serve.

1. Tennessee Food, Drug and Cosmetic Act and Chapter 0080-04-13 License

• Purpose: This license is required to ensure that your restaurant complies with food safety regulations and standards.
• Estimated Cost: The cost of the licensing process varies from $50.00 to $750.00 depending on the size of the facility and the risk level.
• How to Register: You can start the licensing process by contacting TDA’s Manufacturing Outreach Coordinator at (615) 837-5193 or by visiting the TN Dept. of Agriculture’s website.

2. Business License

• Purpose: Every in-state business is subject to business tax and therefore must obtain a business license before engaging in business.
• Estimated Cost: Each license costs $15.00.
• How to Register: You can apply for a business license in the county where your business is located. The Tennessee State Government website has a helpful guide for every county.

3. Liquor-By-the-Drink (LBD) License

• Purpose: This license is required if you plan to serve alcoholic beverages that contain an alcoholic content of eight percent (8%) or greater by weight, such as liquor, wine, and high-gravity beer.
• How to Register: You can find more information about each type of license and apply on the TABC website.

4. Liquor-by-the-Drink – Club License

• Purpose: This license allows you to sell liquor, wine, and high-gravity beer on the premises of clubs, golf courses, tennis courts, and in areas immediately surrounding swimming pools, if your restaurant offers such amenities.
• How to Register: You can apply for this license using the RLPS platform.

5. Liquor-by-the-Drink - Caterer License (LBD)

• Purpose: This license allows you to sell liquor, wine, and high-gravity beer at various locations in a city or county which has authorized the sale of alcoholic beverages for on-premise consumption.
• How to Register: You can apply for this license using the RLPS platform.

For more information, you can visit the following websites:

• Tennessee Department of Agriculture
• Tennessee Department of Revenue
• Tennessee Alcoholic Beverage Commission

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