Texas Alcoholic Beverage Commission (TABC) Practice Exam

Which example qualifies as an "On Premise" establishment?

1. A grocery store that sells wine

2. A restaurant that serves alcohol

3. A bar that primarily sells alcohol

4. A night club

The correct answer is: A grocery store that sells wine

The correct answer is a restaurant that serves alcohol. An "On Premise" establishment refers to a location where alcoholic beverages are sold to be consumed on the premises. This includes establishments that provide both food and drink. In this case, a restaurant fits this definition as it is a place where patrons can enjoy their meals along with alcoholic beverages like wine, beer, or cocktails right at their tables. The primary function of a restaurant is to provide food service, often paired with alcohol sales, which is typical of on-premise consumption. Conversely, a grocery store that sells wine is primarily a retail outlet where people purchase beverages to take away, making it an "Off Premise" establishment. A bar or nightclub also qualifies as on-premise establishments, but the focus of the question is on the context of a restaurant, which is widely recognized for its combination of food and alcohol service.