What does "liquor by the drink" refer to?

"Liquor by the drink" refers specifically to the sale of individual servings of alcoholic beverages for immediate consumption. This term is most commonly used in the context of bars and restaurants where customers order drinks to enjoy on the premises, rather than purchasing a whole bottle or case. This practice is pivotal in the hospitality industry, as it allows establishments to cater to customers who prefer to enjoy drinks in a social setting, maximizing both customer experience and revenue.

The nature of this system is regulated by various liquor laws that differ from state to state, often requiring establishments to have specific licenses to serve liquor by the drink. This contrasts with other options, which pertain to sales structures that do not involve immediate consumption in a social environment. For instance, wholesale alcohol products and packaged alcohol for off-premise consumption are related to different sales models that do not offer individual drinks on-site, while the sale of non-alcoholic beverages does not involve alcohol at all. Thus, the concept of "liquor by the drink" distinctly identifies the practice of serving individual alcoholic beverages.