Opening and running a restaurant in Waco, Texas: permits, taxes and what sells

Permits and the health authority

Your health authority is the Waco-McLennan County Public Health District's Environmental Health Division. Effective September 1, 2025, its Food Establishment Permit is priced by risk category: $258 Low Risk, $475 Medium Risk, $685 High Risk. Related fees on the same schedule: a $100 late-payment fee, a $200 reinspection fee, a $150 fee for an additional pre-opening or consultation visit, and a $350 fee to reinstate a suspended permit. (Also running a truck: mobile food vendor licensing statewide moved to Texas DSHS on July 1, 2026 — check DSHS directly.)

Sales tax on the ticket

Prepared food in Waco carries a combined 8.25% sales tax: 6.25% state, plus 1.50% City of Waco and 0.50% McLennan County local components, per the Comptroller's local rate listing. That's the statewide ceiling — local add-ons cap at 2% on top of the state rate everywhere in Texas, so Waco is already at the maximum.

Alcohol

TABC's statewide rules apply in Waco the same as anywhere else in Texas. Beer and wine service typically calls for a Wine and Malt Beverage Retailer's Permit (BG); a full bar needs a Mixed Beverage Permit (MB). Most restaurants pair either with a Food and Beverage Certificate, which requires qualifying as a "restaurant" or keeping alcohol to 60% or less of total sales — the current 60%-alcohol-cap framing, not the older "51% food" rule, though it works out to roughly the same 40%-minimum-food floor. A permittee also owes a 6.7% mixed beverage gross receipts tax out of pocket, plus an 8.25% mixed beverage sales tax charged to the guest. We didn't confirm a Waco-specific wet/dry restriction beyond Texas's standard local-option system — check your address with TABC before applying.

The local food calendar

The confirmed market here is the Waco Downtown Farmers Market, held every Saturday from 9:00am to 1:00pm at Bridge Street Plaza, per the city's official destination and visitors organization. We didn't find a confirmed city-run food festival for Waco in this research; if one matters to your plan, check the chamber or parks and recreation calendar directly.

What kind of restaurant works here

Two things drive demand in Waco harder than the resident population alone would suggest. Baylor University supplies a large student base for nine months of the year, with football Saturdays turning ordinary weekends into full houses. And Magnolia Market at the Silo District has made Waco a genuine day-trip and weekend tourist destination well beyond its home size, pulling in visitors who wouldn't otherwise pass through. A third factor is the I-35 corridor itself — Waco sits directly between Dallas-Fort Worth and Austin/San Antonio, so through-travelers are a real, steady segment on top of the local and tourist trade.

Running it on your own site

Your own site takes orders four ways — pickup, delivery inside the ZIP zone you set, a dine-in order sent from the table, or a pay-it-forward treat for another table — with every ticket paid straight into your own Stripe account and no commission taken on any of them. Set your 8.25% combined rate once under Admin → Restaurant and it applies and shows on every online ticket before the guest pays. Given how sharply Baylor game days and Silo District weekends spike demand here, the staff scheduling and shift tools are worth building around a known event calendar rather than a flat weekly pattern.

FAQ

How much does a Waco restaurant permit cost?
The Waco-McLennan County Public Health District's risk-based Food Establishment Permit, effective September 1, 2025, is $258 for Low Risk, $475 for Medium Risk, and $685 for High Risk, plus separate fees for late payment ($100), reinspection ($200), pre-opening consultation ($150) and reinstating a suspended permit ($350).

What's the combined sales tax rate on food in Waco?
8.25%: 6.25% state, 1.50% City of Waco, and 0.50% McLennan County, per the Comptroller's local rate listing.

Is there a Waco-specific reason to plan staffing around a calendar, not just a weekly schedule?
Yes — Baylor's football home-game Saturdays and the Magnolia Market/Silo District tourist crowd both create real, recurring surge days worth scheduling around, on top of the ordinary weekend pattern.