Restaurants are often subject to licensing requirements and other regulations by the local government. For example, they may be required to obtain a liquor license and to comply with zoning ordinances. These regulations will be upheld by the courts if the local government acted within its delegated authority and if the regulations are reasonable.

Local Government's Authority

Local governments are authorized to enact regulations on business activities under their police power. The police power is the authority delegated to local governments by the federal and state constitutions to protect the health, safety, morality or general welfare of their citizens. The regulations may not be in an area of law that is controlled by state or federal law. The regulations may also not conflict with state or federal law.

In order to be valid, regulations also must be reasonable. They cannot discriminate against protected classes of people, such as minorities. They cannot deprive someone of their constitutional rights. Further, they cannot be an undue burden on interstate commerce or otherwise violate the Commerce Clause of the U.S. Constitution.

Kinds of Regulations

Local governments can provide for reasonable regulation and inspection of restaurants and catering services. Regulations may include:

• Permissible opening and closing times under city ordinances
• Parking restrictions under city ordinances
• Limitations on the number of patrons allowed inside a building under the city fire code
• Serving food that is not contaminated under the city health code
• Having an allowed use under the city zoning ordinances
• Restrictions on live music under the city ordinances

Restaurants may not be completely banned from a city under zoning restrictions. However, local governments can distinguish between restaurants that are and are not allowed in certain areas. For instance, drive-in restaurants, where patrons purchase their food inside a restaurant and then eat the food in a vehicle or outdoor eating facility, can be prohibited. Restaurants that serve food inside and provide space inside to eat the food and that also have drive-through windows where food can be picked up can generally not be prohibited, unless they constitute a real detriment to the public health and welfare.

Licensing Requirements

Local governments can also regulate restaurants by requiring them to have licenses. Licensing requirements have to be reasonable and cannot conflict with federal or state law.

One important kind of license for a restaurant is a license to serve liquor or alcoholic beverages. In some states, liquor control is a shared responsibility between the state and local governments, and local governments can regulate activities that the state does not regulate. For a local liquor license, the restaurant owner must apply for a license from the local government, pay a fee and agree to certain restrictions in order to keep its liquor license. These restrictions can include:

• Closing the restaurant by a certain time every night
• Not allowing persons under the age of 21 into an establishment that sells alcoholic beverages unless the major portion of the business conducted by the licensee is other than the sale of alcoholic beverages
• Not allowing the use of falsified identification cards

Local governments can deny applications for liquor licenses under some circumstances, such as:

• Proximity of the tavern to schools or churches
• Any other reasons related reasonably to the public health, safety, morality or general welfare

Liquor or tavern licenses may be revoked by the local government if the restrictions on activities are violated. In an emergency, licenses can be revoked immediately. Usually, though, licensees must be provided with notice and a fair hearing.

If you have any questions about the local licensing requirements and other regulations on restaurants, contact a small business lawyer in your area.

Questions for Your Attorney

• Can the city in which my restaurant is located require me to have a local liquor license when the state also requires me to have a liquor license?
• Does my local government make routine inspections of restaurants to see that they are complying with local regulations?
• Can the city revoke my restaurant's liquor license for serving people who are not 21 years old?

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