Robert Dove, Attorney + Chair, Gaming + Sports Betting Practice

One attractive method to serve your customer base and maintain sales is to deliver beer and wine. While most restaurants don’t avail themselves of this opportunity under normal operating conditions, many commonly used Ohio liquor licenses authorize the holder and its employees to deliver beer and wine.

Here are four key considerations for bars and restaurants looking to take advantage of this opportunity:

1. Know Your Permit Class + Its Privileges 

Manufacturer of Beer (Class A1c)
Employees of an A1c class permit holder can:

• Deliver beer directly to customers.

Beer-only Permit (Class D-1)
Employees of a D-1 permit holder can:

• Deliver beer directly to customers in the original container, provided that container does not exceed 1 5/6 (one-and-five-sixths) gallons;
• Sell beer for carry-out subject to the same conditions.

Wine + Mixed Drinks Permit (Class D-2)
Employees of a D-2 permit holder can:

• Deliver wine and premixed and prepackaged cocktails (not exceeding 21% alcohol by volume) directly to customers in the original container;
• Sell wine and mixed drinks for carry-out subject to the same conditions.

Beer, Wine + Mixed Drinks (Class D-5)
Employees of a D-5 permit holder can:

• Deliver beer directly to customers in its original packaging, provided it does not exceed 1 5/6 (one-and-five-sixths) gallons;
• Deliver wine and premixed and prepackaged cocktails (not exceeding 21% alcohol by volume) directly to customers in the original container;
• Sell beer, wine, and premade, prepackaged mixed drinks subject to the same conditions.

2. Understand How Your Permit Applies to Employees vs. Independent Contractors 

Holders of the permit classes listed above are authorized to deliver directly to customers, as are their employees because employees are covered by their employer’s liquor permit.

On the other hand, independent contractors must be individually permitted to deliver alcohol and cannot be covered by another entity’s permit. In order to deliver alcohol, independent contractors must have an H permit, which authorizes individuals or businesses who are not otherwise permitted by the Division of Liquor Control to deliver alcohol.

This is an important distinction because most third-party delivery services like Uber Eats, Door Dash, and Postmates, use independent contractors as delivery drivers. Therefore, to deliver alcohol through these services, you must be able to be confident that your delivery driver holds an H permit from the Division of Liquor Control (which is extremely unlikely for your average third-party delivery driver). Alternatively, some delivery services that obtain H permits and actually employ their drivers can allow those drivers to make alcohol deliveries under the entity’s H permit.

3. Make Sure You Have the Right Insurance Coverage  

If you decide to switch to a delivery model, even in the short term, it is important to protect your business and employees by ensuring you have the proper insurance coverage in place. Failure to obtain the proper insurance coverage, which could include submitting license information for each of your delivery drivers, could result in loss of coverage, denial of claims, and further trouble should an accident occur.

4. Keep Meticulous Records Because You Have a Reporting Obligation  

If you decide to deliver alcohol to customers, keep clear and thorough records. Ohio law requires that any business that ships alcohol directly to customers or other entities must submit monthly reports detailing:

• who they are;
• who they sold to;
• what they sold;
• when they sold it; and
• in what quantities.

A copy of those reports also needs to be maintained by the business for two years after submittal.

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If you have any questions regarding these considerations or other obligations you will have when expanding your delivery or carry-out services in light of the COVID-19 pandemic, please reach out directly to Robert Dove.