Here’s How Difficult It Is To Get a Liquor License in Utah

Utah's Community Spirit: A Paradox for Businesses

Utah may be known for strong communities, but a new study says the state is one of the toughest places in the country to launch a business built around social gathering.

Ranking the States: Where Does Utah Stand?

Maxwell Social’s new Third-Place Business Index ranked all 50 states based on how easy it is to open and operate a community-forward hospitality business, such as a bar, cafe, social club or neighborhood hangout. The study ranked Utah as one of the three worst states in America to launch a third place, along with Pennsylvania and Idaho.

Understanding 'Third Places': More Than Just a Business

A “third place” is a gathering spot that is not home and not work. Home is the first place. Work is the second place. A third place is where people build community outside those two settings — places like coffee shops, bars, restaurants, clubs, libraries, parks or social venues.

Factors Influencing Business Launch in Hospitality

For this particular index, Maxwell Social focused heavily on hospitality businesses and liquor-policy rules. The study weighed six factors: whether a state controls alcohol distribution, liquor license quotas, cocktails-to-go laws, Sunday sales rules, happy hour laws and public search interest in “third places.”

Utah’s low ranking was tied to stricter alcohol regulations, including state-controlled alcohol distribution and license limits. Maxwell Social said states with fewer liquor-law barriers tend to give founders more flexibility to build modern gathering spaces.

The Impact of Alcohol Regulations on Utah’s Business Landscape

Washington, Colorado and Missouri ranked as the best states for launching a third place. Colorado’s high ranking is especially notable for Utah because it gives Mountain West entrepreneurs a nearby example of a more flexible hospitality environment.

Comparative Analysis: The Best States for Third Places

The study does not mean Utah lacks community gathering places. It also does not measure zoning, city-level rules, nonalcoholic venues or church and recreation-based community life. But it does suggest Utah’s regulatory structure can make it harder for certain hospitality businesses to grow.

Community Beyond the Bar: What Utah Has to Offer

For Utah entrepreneurs, the takeaway is clear: community is strong here, but the business path to building a third place may be more complicated.