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The Red 51% Sign in Texas Bars: What It Means

The red 51% sign at a Texas bar's door means at least 51% of that business's income comes from alcohol sold for drinking on site. In plain terms, it marks a place that's mainly a bar, not mainly a restaurant.

Who has to post it

A business holding a Mixed Beverage Permit (MB), Wine and Malt Beverage Retailer's Permit (BG), Retail Dealer's On-Premise License (BE) or a private club permit must post the red handgun warning sign at every entrance when 51% or more of its income comes from on-site alcohol sales. Places that also hold a Food and Beverage Certificate (FB) don't post it.

The sign exists because Texas law restricts carrying a handgun into a business that crosses the 51% line. The sign tells people before they walk in.

RED and BLUE in TABC's records

TABC's license data marks each on-premise location as RED or BLUE. RED means the location is designated a 51% business. BLUE means it isn't, so alcohol is under half its income. Bar Sales IQ shows this as the red or blue sign badge on every location.

Why it's useful

Sales reps: red-sign locations are bars first, which usually means higher liquor and beer volume per seat.
Buyers and lenders: the designation tells you how the business makes its money before you see the books.
Insurance: carriers price liquor liability differently for bars and restaurants.

See the gun sign on any location, or filter search results to red-sign bars. Search Bar Sales IQ

Sources: TABC Sign Requirements. This guide explains what public records show; it isn't legal advice. Check with TABC before acting on a licensing question.

Questions

What does the 51% sign mean in Texas?

It means 51% or more of the business's income comes from selling alcohol for drinking on site, so it's mainly a bar.

Do Texas restaurants post the red 51% sign?

Restaurants that hold a Food and Beverage Certificate (FB) don't have to. The sign applies to on-premise alcohol businesses without an FB that cross the 51% line.

What does BLUE mean for a TABC license?

In TABC's license records, BLUE means the location isn't designated a 51% business: alcohol is less than half its income.

More permit guides

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