What is the Difference Between a Series 6 and Series 7 Liquor License in Arizona?

When opening a bar, restaurant, or any establishment that intends to sell alcoholic beverages in Arizona, selecting the right liquor license is a critical decision. Two of the most commonly sought-after licenses are the Series 6 (Bar License) and the Series 7 (Beer and Wine Bar License). While both licenses allow businesses to sell alcohol, they differ in the types of beverages they permit and the manner in which they can be sold.

Here’s a detailed comparison of the two licenses, their differences, and which one might be right for your business.

1. What is a Series 6 Liquor License?

A Series 6 Liquor License, often referred to as a “Bar License”, is one of the most comprehensive alcohol licenses available in Arizona. It allows establishments to sell beer, wine, and distilled spirits for on-premises consumption (such as in a bar or restaurant) as well as for off-premises consumption in sealed containers.

Key Features of a Series 6 License:

• On-Premises Consumption: Alcohol can be sold and consumed on-site, making this ideal for bars, taverns, and restaurants.
• Off-Premises Sales: Allows the sale of sealed bottles of beer, wine, or spirits for customers to take home.
• Types of Alcohol: Includes beer, wine, and distilled spirits (such as whiskey, vodka, and rum).
• Flexibility: Businesses that obtain a Series 6 license are not restricted by food sales, unlike some other licenses. They can operate primarily as a bar or nightclub.

This license is commonly used by bars, nightclubs, and certain restaurants that want to offer their customers a full range of alcoholic beverages. The ability to sell alcohol for off-premises consumption provides additional revenue opportunities for businesses.

2. What is a Series 7 Liquor License?

A Series 7 Liquor License, also known as a “Beer and Wine Bar License”, allows businesses to sell beer and wine for both on-premises and off-premises consumption. However, this license does not allow the sale of distilled spirits, which is one of the major differences compared to the Series 6 license.

Key Features of a Series 7 License:

• On-Premises Consumption: Beer and wine can be sold and consumed on-site.
• Off-Premises Sales: Sealed containers of beer and wine can be sold for customers to take home.
• Types of Alcohol: Limited to beer and wine only; no spirits like whiskey, vodka, or rum are permitted under this license.
• Lower Cost and Availability: Series 7 licenses are often less expensive than Series 6 licenses and may be easier to obtain, depending on location.

A Series 7 license is ideal for businesses that primarily focus on selling beer and wine, such as wine bars, brewpubs, or casual restaurants that don’t need to offer a full bar.

3. Main Differences Between Series 6 and Series 7 Licenses

While both licenses allow on-site and off-site sales of alcoholic beverages, there are several important distinctions between them:

a. Types of Alcohol Permitted

• Series 6 License: Allows for the sale of beer, wine, and spirits (e.g., whiskey, vodka, rum, tequila).
• Series 7 License: Restricts sales to beer and wine only; distilled spirits are not allowed.

b. On-Premises vs. Off-Premises Sales

• Both the Series 6 and Series 7 licenses allow for on-premises consumption, meaning customers can drink alcohol in the establishment.
• Both licenses also permit off-premises sales, where customers can buy sealed containers of alcohol to take home. However, under the Series 7 license, only beer and wine can be sold off-premises.

c. Business Type Flexibility

• Series 6 License: This license provides the flexibility to operate as a full bar, tavern, or nightclub, with the ability to sell spirits alongside beer and wine. Businesses can generate significant revenue from alcohol sales without needing to serve food.
• Series 7 License: While businesses with a Series 7 license can operate as beer or wine bars, they are limited in the types of alcohol they can serve. This can restrict the customer base, particularly in markets where patrons expect a full bar service.

d. Cost and Availability

• Series 6 License: Due to its comprehensive coverage, a Series 6 license is more expensive and harder to obtain. Arizona uses a quota system, meaning the number of licenses available in a given area is limited based on population size. The cost of a Series 6 license can range from $30,000 to over $100,000, depending on location and demand.
• Series 7 License: Because it is limited to beer and wine, a Series 7 license is typically less expensive than a Series 6 license. While still under the quota system, it is generally easier to obtain and costs less than a Series 6 license.

e. Application Process

The application process for both licenses is relatively similar, involving background checks, fingerprinting, and approval from the Arizona Department of Liquor Licenses and Control (DLLC). However, because the Series 6 license is more sought-after, it may take longer to acquire due to market competition and limited availability.

4. Which License is Right for Your Business?

Choosing between a Series 6 and a Series 7 license depends on the type of business you plan to operate and the needs of your customers:

• Choose a Series 6 License if you want to operate a full-service bar or nightclub where customers expect a wide variety of alcoholic beverages, including spirits. This license is ideal for businesses that want to sell beer, wine, and liquor both for on-site consumption and as retail sales.
• Choose a Series 7 License if your business focuses on beer and wine sales, such as a brewpub, wine bar, or casual restaurant. This license is suitable for establishments that don’t need to offer hard liquor but still want to serve and sell beer and wine on-site and for take-away.

The primary difference between a Series 6 and Series 7 liquor license in Arizona is the range of alcoholic beverages they allow businesses to sell. A Series 6 license permits the sale of beer, wine, and spirits, making it the more versatile and comprehensive option for bars, nightclubs, and restaurants. In contrast, a Series 7 license is restricted to beer and wine sales, making it ideal for businesses focused on those beverages.

While a Series 6 license provides broader alcohol service opportunities, it comes with a higher cost and increased competition due to limited availability. Businesses that primarily serve beer and wine can save money and still meet their operational needs by opting for a Series 7 license.

Understanding the differences between these licenses will help you make an informed decision that aligns with your business goals and the customer experience you wish to create.