R19-1-206. Criteria for Issuing a Restaurant License

A. The Department shall not issue a restaurant license to an applicant if the Department finds there is sufficient evidence that the applicant will be unable to operate as a restaurant as defined in A.R.S. § 4-205.02(M)(2). B. The following criteria are evidence of an ability to operate a restaurant as defined in A.R.S. § 4-205.02(M)(2). The Department shall consider these criteria when determining whether to issue a restaurant license to an applicant: 1. Number of cooks, other food preparation personnel, and wait staff are sufficient to prepare and provide the proposed restaurant services; 2. Restaurant equipment is of sufficient grade or appropriate for the offered menu; 3. Proposed menu is of a type and price likely to achieve 40 percent food sales; and 4. Dinnerware and small-ware, including dining utensils, are compatible with the offered menu. C. The following criteria are evidence of an inability to operate a restaurant as defined in A.R.S. § 4-205.02(M)(2). The Department shall consider these criteria when determining whether to issue a restaurant license to an applicant: 1. More than 60 percent of the public seating area consists of barstools, cocktail tables, and similar seating indicating the area is used primarily for consumption of spirituous liquor; 2. Name, signage, or promotional materials of the proposed business premises contain a term such as bar, tavern, pub, spirits, club, lounge, cabaret, or saloon that denotes sale of spirituous liquor; 3. Proposed business premises has a jukebox, live entertainment, or dance floor; and 4. Proposed business premises contain bar games and equipment. D. This Section is authorized by A.R.S. § 4-205.02(E).