Startup business question involving alcohol...

studioone

Joined: May 3, 2007

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Now that I have your attention... lol..

I have a basic farmhouse out near Millican that I have a friend who is wanting to open up a Meadery (honey wine).. and since im a beekeeper... I thought it'd be cool... maybe the possibility of turning it into another Christophers (a local high end restaurant)...

However.. he's having issues coming up with the $20,000 needed just for the alcohol license..

anyone got advice I can send him on maybe getting some partners interested or some way of getting startup capital?

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bkag9824

Joined: Nov 4, 2010

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In reply to studioone • 6:00a, 5/15/25

AG

studioone said:

Now that I have your attention... lol..

I have a basic farmhouse out near Millican that I have a friend who is wanting to open up a Meadery (honey wine).. and since im a beekeeper... I thought it'd be cool... maybe the possibility of turning it into another Christophers (a local high end restaurant)...

However.. he's having issues coming up with the $20,000 needed just for the alcohol license..

anyone got advice I can send him on maybe getting some partners interested or some way of getting startup capital?

The fact that he can't come up with $20k for a liquor license is a pretty good indication the liquidity needed for long term success is….likely going to be prohibitive to success much beyond a hobby.

Edit - apologies if my original note was dismissive. Not meant to be, but lots of folks spend a lot of money to get alcohol establishments up & going, only to quickly close shop due to liquidity issues. Multiply that by a significant factor if anyone is thinking about opening one of the tightest margin businesses…restaurants. He needs a business plan, engage with bankers, etc.

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goatchze

Joined: Oct 14, 2007

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7:30a, 5/15/25

AG

I think you and your friend need to do more research and study. Do you have a written business plan? Have you considered starting small and later expanding the operation?

I'm not an expert on liquor licenses, but I'm not sure how you get to $20k from this table:

https://www.tabc.texas.gov/static/sites/default/files/2021-08/tabc-sept-2021-two-year-licensing-fees.pdf

A small brewpub would never survive is these fees were an order of magnitude higher.

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Sims

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7:57a, 5/15/25

AG

You're going to need a much longer runway than 20k.

3 restaurants have been started in my social circle, 2 ultimately folded up after 2 years and burned abotu 400k in cash each. 1 is still going, owners comfortable but not on Food Network TV like they knew they would be in 3 months.

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