The cost of obtaining a liquor license in New York City depends on the type of establishment and borough. According to the New York State Liquor Authority (SLA), there are several main factors that influence the price:
New vs. Existing Licenses
For new liquor licenses issued by the SLA, the cost is determined by the type and location. In NYC, a new on-premises liquor license currently has an application fee of $3,060. There are also other administrative and legal fees associated with obtaining a new license that can add several thousand dollars or more to the overall cost.
Existing liquor licenses that are purchased from current license holders are priced based on market value. In NYC, existing liquor licenses typically sell for $10,000 – $1,000,000 depending on the borough, neighborhood, type of establishment, and other factors. Manhattan licenses tend to sell for significantly higher prices than the outer boroughs.
License Class
The SLA issues several different classes of retail liquor licenses in New York. Each license class allows establishments to sell and serve alcohol in specific ways. The main retail license classes in NYC and their average market prices are:
- Restaurant On-Premises Liquor (OP) License – Allows a restaurant to serve beer, wine and liquor. Average price: $35,000+
- Tavern On-Premises Liquor (OP) License – Allows a tavern to serve beer, wine and liquor. Average price: $70,000+
- Bar On-Premises Liquor (OP) License – Allows a bar to serve beer, wine and liquor. Average price: $100,000+
- Club On-Premises Liquor (OP) License – Allows a club to serve beer, wine and liquor to members and guests. Average price: $10,000+
- Hotel On-Premises Liquor (OP) License – Allows hotels to serve liquor to registered guests. Average price: $100,000+
- Grocery Beer License – Allows grocery stores to sell beer for off-premises consumption. Average price: $20,000
- Drug Store Beer License – Allows drug stores to sell beer for off-premises consumption. Average price: $35,000+
- Wine Store License – Allows the sale of wine for off-premises consumption. Average price: $25,000
In general, a full on-premises liquor license that allows a restaurant, bar or lounge to serve spirits along with beer and wine is going to be the most expensive type of license in NYC.
Borough and Neighborhood
Location is one of the biggest factors influencing liquor license prices in NYC. In general, licenses issued for Manhattan establishments sell for significantly higher prices. For example, a new restaurant wine and beer license costs the same $3,060 application fee in every borough. However, an existing restaurant wine and beer license could sell for $15,000-$30,000+ in Manhattan compared to $5,000-$15,000 in Brooklyn or Queens.
Within each borough, desirable and high-traffic neighborhoods like Times Square, the Upper East Side, Williamsburg and Long Island City command higher license prices than other areas. Even within neighborhoods, the price can vary block to block depending on foot traffic, tourism and other factors.
NYC Liquor License Price Ranges by Type and Borough
| License Type | Manhattan Price Range | Brooklyn Price Range | Queens Price Range | Bronx Price Range |
|---|---|---|---|---|
| New Restaurant OP | $3,060 + fees | $3,060 + fees | $3,060 + fees | $3,060 + fees |
| New Bar OP | $3,060 + fees | $3,060 + fees | $3,060 + fees | $3,060 + fees |
| Existing Restaurant OP | $100,000 – $300,000+ | $35,000 – $100,000+ | $25,000 – $75,000+ | $15,000 – $50,000+ |
| Existing Bar OP | $250,000 – $1,000,000+ | $100,000 – $300,000+ | $50,000 – $150,000+ | $25,000 – $100,000+ |
| Restaurant Wine & Beer | $30,000 – $100,000+ | $15,000 – $50,000+ | $10,000 – $30,000+ | $5,000 – $25,000+ |
| Grocery Store Beer | $50,000 – $100,000+ | $25,000 – $75,000+ | $15,000 – $50,000+ | $10,000 – $35,000+ |
Within each borough, licenses for establishments in popular nightlife and dining areas will sell for prices at the higher end of the spectrum. Additional factors like size, years in business, and transferability can also impact prices.
Other NYC Liquor License Costs
In addition to the purchase price, there are other costs associated with obtaining and renewing a liquor license in NYC:
- Attorney Fees – Many businesses hire a liquor license lawyer to help navigate the licensing process. This typically costs a few thousand dollars or more.
- Permit Fees – Various permits are required depending on the type of establishment. These permits range from $60 – $2,500 per year.
- Inspection Fees – The SLA and NYC Department of Health may inspect new establishments, costing several hundred dollars in fees.
- Renewal Fees – Liquor licenses must be renewed each year, with fees of $100-$1,100 depending on type.
There are also costs associated with complying with the SLA rules for security cameras, training requirements, inventory tracking and other operational aspects of serving alcohol. Many businesses spend thousands per year conforming to the various regulations.
Financing Options for Liquor Licenses
For most new restaurants, bars and other establishments, coming up with the funds to purchase a liquor license in NYC requires some amount of financing. Some of the main options for liquor license financing include:
- Bank Loans – Small business loans or commercial bank loans can provide financing specifically for purchasing a liquor license. Banks will require good credit, collateral, and strong business plans to qualify.
- Seller Financing – Sometimes license sellers will agree to owner finance a portion of the sales price over a set repayment term. This avoids bank loan qualifications.
- Private Lending – Specialty finance firms provide high cost loans specifically for liquor license buyers. This is an option for those who may not qualify for bank loans.
- Partners & Investors – Bringing on business partners or outside investors is one way to raise funds for purchasing a liquor license.
- Crowdfunding – Recently platforms like Kickstarter have allowed hospitality businesses to crowdfund a portion of liquor license costs through lots of small investments.
Many new restaurant and bar owners in NYC take a multi-pronged approach to financing, combining owner capital, outside investors, and loans to come up with the funds for acquiring a license. Having a solid business plan and experienced legal help improves the chances of securing financing.
NYC Liquor License Application Process
The steps to apply for and receive a new or transferred liquor license in NYC include:
- Determine the type of license needed for the business.
- Review state and local requirements, rules and fees.
- Work with an attorney to complete license application and gather required documents.
- Submit application, fees, business plans and documents to NYSLA.
- Complete a background check on all owners and principals.
- Receive temporary retail permit to purchase alcohol wholesale.
- Pass final inspections by SLA investigators.
- Attend a 500 Foot Hearing to demonstrate community need for a license.
- Receive final license approval from SLA if everything is satisfactory.
The entire liquor license process in NYC can take 4-6 months for an uncontested application, if there are no issues. Contested applications may take much longer if hearings and appeals are required. Working with an experienced liquor license attorney can help expedite the approval process.
Conclusion
The cost to acquire a liquor license in New York City ranges widely, with new licenses starting at around $3,060 and existing licenses selling for $10,000 into the millions. Factors like license class, borough, neighborhood, venue type and financing options can significantly impact the overall investment required. However, for many NYC restaurants and bars, a liquor license is an essential revenue stream that makes the upfront cost worthwhile.