Unusual State Law Prevents Donelson Restaurant from Selling Liquor

Sometimes, you hear about a law that just doesn’t make sense and leaves you wondering why it even exists.

A couple running a business in Donelson believes one of those strange laws is preventing them from selling liquor, and they are not happy about it. The issue boils down to who your relatives are.

At the Cheba Hut restaurant in Donelson, you can find a variety of toasted subs on the menu, like the Dank.

It’s got pepperoni, salami, provolone cheese, garlic bread, garlic butter, and marinara sauce,” said Dawn Atkins, one of the shop’s owners.

To wash down your sandwich, they offer Kool-Aid in three flavors: red, purple, and blue.

When Dawn and her husband, Scott, opened the sandwich shop earlier this year, they planned to serve alcohol. But right now, the only drinks they can serve from the bar are beer.

“We can’t get a liquor license, Scott explained.

The reason is an obscure state law that says you can’t get a liquor license if you have a relative who works for the Tennessee Alcoholic Beverage Commission TABC.

“This is the most absurd law I’ve ever heard, Scott said.

The couple didn’t know about this law when they applied for their license or passed their inspection. But then, their license was denied.

Scott recalled the phone call he received: “They said, Oh, you can’t have one because you have a family member who works there. And we were like, Who?

It turns out that Scott’s half-brother, who works for the TABC, was adopted by Scott’s uncle, making him technically Scott’s cousin.

So, do you see him often? we asked the couple.

No, just at family funerals, they replied.

Scott said he sees his cousin maybe once a year and didn’t even know he worked for the TABC until recently. His cousin’s job title is executive administrative assistant.

We knew he worked for the state, but we didn’t know what he did, Scott said.

But that doesn’t seem to matter to state regulators. The law is in place to prevent conflicts of interest.

Tennessee has laws to prevent conflicts between the state and entities regulated by or doing business with the state, said Russell Thomas, the Executive Director of the TABC.

The TABC even asked the Tennessee Attorney General to review the situation, and the AG’s Office agreed that Scott’s half-brother, being a family member, disqualifies them from getting a liquor license.

It’s just silly, so silly. We’re dumbfounded by it, Dawn said.

It’s not just the liquor license, though. Scott and Dawn aren’t even allowed to get a server’s license, which means they can’t help behind the bar during busy times.

It’s very frustrating because we risk losing this business, Scott said.

The couple has invested everything into their restaurant, from the decorations on the walls to a $2 million loan. But selling sandwiches alone isn’t enough to keep the business afloat. They were counting on liquor sales to boost their revenue by at least a third, as was the Cheba Hut franchise.

When we bought the franchise, we had to commit to opening three stores. But now, Cheba Hut is saying, If you can’t get a liquor license, there’s no point in opening more stores. We might need to find someone else, Scott said.

Facing the potential closure of their restaurant, the couple even considered drastic measures.

We were willing to get a divorce just to get a liquor license, Dawn shared.

But when they learned that even a divorce wouldn’t help, they were left wondering the same thing as their customers.

When are you going to get liquor?’ We’d like to know that too, Dawn said.

Cheba Hut has more than 60 locations in 15 states, and Scott and Dawn say theirs is the only one not allowed to sell liquor.

They weren’t aware of the law until they were about to open because you can’t apply for a liquor license until then. The law wasn’t mentioned on the TABC website; you have to dig into state laws to find it.

The couple now has an attorney and is considering their options. If they have to close their Donelson location, they might move and open their restaurants in Kentucky, which doesn’t have a law like this.

If you’re wondering how they can sell beer, beer licenses come from the Metro Beer Board, not the state, and that board doesn’t have a law like this.

We reached out to the governor and the Tennessee Department of Economic and Community Development, both of which are very pro-business. While we didn’t hear back from TDEC, the Governor’s Office told us, “The General Assembly should consider reviewing this outdated law to determine whether it is still serving the needs of Tennesseans.