If you’re planning to open an establishment that serves or sells alcohol in Orange County, obtaining the correct liquor license is a critical first step. Below, we’ll break down the costs involved in acquiring a liquor license in Orange County, whether you’re a restaurant seeking a Type 47 license, a bar or nightclub owner seeking a type 48 license, or a retail business aiming for a Type 20 or 21. Understanding the liquor license landscape in this region is essential for any business dealing with alcohol, and we’re here to simplify that process for you.

Types of Liquor Licenses for Sale in Orange County, CA

In Orange County there are three license types that a limited or quota that need to be purchased.  The right liquor licenses is determined the nature of your business and the type of alcohol you plan to serve. Identifying the right license for your establishment is the first step toward understanding the associated costs. Each liquor license comes with specific privileges for the sale of alcoholic beverages. Here are some of the most common licenses:

• Type 20 License: This license allows for the sale of beer and wine for off-premises consumption. It’s ideal for grocery stores, convenience stores, and liquor shops. A Type 20 license typically costs around $7,000 plus escrow, ABC transfer, and broker fees.
• Type 21 License: This license permits the sale of all beer, wine and distilled spirits for off-premises consumption. Type 21 licenses in Orange County are currently valued between $15,000 and $20,000, plus additional fees such as escrow, transfer, and brokerage fees.

Our Comp data shows the following recent sales of Off Sale General, Type 21 Licenses in Orange County:

Recent Sales:
License 479453 sold on 10/3/24 for $20,000
License 564840 sold on 10/3/24 for $15,000
License 56782 sold on 9/19/24 for $15,000

• Type 47/48 License: These licenses are highly sought after by restaurants and bars as they allow for the sale of beer, wine, and spirits for on-site consumption. Type 47 and 48 licenses are interchangeable, and the type designation is determined at the time of application based on the business plan of operation. The cost for a Type 47 or 48 licenses in Orange County ranges between $80,000 and $85,000 plus fees, reflecting the demand in the region.

Our Comp data shows the following recent sales of On-Sale General, Type 47 or Type 48, Licenses in Orange County:

Recent Sales:
License 567029 sold on 9/26/24 for $79,000
License 643646 sold on 9/19/24 for $82,000
License 600634 sold on 8/14/24 for $82,000

Cost Breakdown of Orange County Liquor Licenses

The cost of obtaining a liquor license in Orange County depends on several factors, including the type of license and current market conditions. Below is a summary of the typical costs you can expect:

Liquor License Prices

• Type 20 License: $7,000 and up
• Type 21 License: $15,000–$20,000
• Type 47/48 License: $80,000–$85,000

Finder’s Fees

If you use a broker to purchase a liquor license, be prepared to pay additional costs. The industry standard is 10% of the license’s purchase price, or a flat fee for licenses costing less than $30,000. (Add benefits of using a broker.)

Escrow Fees

Buyers are also responsible for escrow fees, which vary depending on the company managing the transaction and are about $1,500.00

License Transfer Fees

If you’re buying a liquor license from an existing business, ABC transfer fees apply. These fees range from $1,000 to $4,000 depending on the license type and sale circumstances. The transfer process can take several months, so it’s essential to plan ahead.

What Affects the Cost of a Liquor License?

A number of factors influence the cost of liquor licenses in Orange County. Understanding these factors will help you navigate the process of applying for or purchasing a license. 

How Supply Affects License Prices

Certain types of liquor licenses are limited by ABC moratorium in Orange County, and the California Department of Alcoholic Beverage Control (ABC) regulates their distribution. As businesses compete for a limited number of licenses, prices naturally increase. Certain local factors can significantly affect license supply. Some city governments require that potential licensees purchase and transfer a liquor license from within set census tracts. Certain political factors, such as pressure from local police departments to restrict or deny liquor licenses in certain areas, can really ramp up the competition and strangle supply for businesses seeking licensing.

How Demand Affects License Prices

In areas with a vibrant hospitality industry, or areas where new developments and shopping centers are springing up, demand for licenses is high. Cities with numerous entertainment venues see intense competition for a set number of licenses. In areas known as major tourism hot spots, demand for licenses is hot. The ABC only issues original licenses once per year during the annual priority license registration. The number of original licenses released depends on population growth within each county. If licenses are made available and the number of applicants exceeds the number of licenses available, a drawing will be held. In highly populated counties such as Los Angeles, Orange County, and San Diego, if licenses are made available, the number of applicants is usually in the hundreds with a maximum of 25 on-sale original licenses being made available.

Let License Locators Help You Find the Right Orange County Liquor License

Navigating the complexities of obtaining an ABC license in Orange County can be daunting, but you don’t have to do it alone. Whether you’re looking for a Type 47 license for a restaurant, a type 48 for a bar or nightclub, or a Type 20 or 21 license for a retail store, our team at License Locators is here to assist you. Using our license brokerage will ensure that you reap all the benefits of being guided by a professional. We can walk you through potential hurdles and vet licenses before you are locked into a purchase contract to make sure you will minimize the risk of running into complicated issues. We specialize in helping businesses find, buy, and sell liquor licenses throughout California. Reach out to us today to learn more about how we can help secure the right license for your business.

Values listed are a reasonable approximation based on sale trend information.
Prices fluctuate on a daily bases for current values contact our office.