Bars and Nightclubs are both highly regulated and highly profitable. Because of alcohol sales and their high potential for assorted vice crimes, state and local governments monitor bars and nightclubs carefully. In some cities such as Philadelphia, a bar or nightclub may need up to 12 licenses and permits. Navigating the maze of applications and processes required to start such a business can be daunting.
The beautiful beach community of Santa Barbara is no small town. Because of its size and economic diversity, Santa Barbara has numerous business regulations. Unlike many cities, Santa Barbara categorizes businesses and charges different licensing fees and tax rates accordingly. Businesses must license under the correct category and in many cases, obtain a variety of additional licenses and permits – especially in businesses involving food or anything that can affect public health. Santa Barbara is known for its tourism, it also hosts a growing wine industry and some manufacturing. However, Santa Barbara is mostly known for its local small businesses and many food and retail establishments that benefit from tourism and the city's generally affluent community.