How you pay for the bar affects guests, budget and the legal setup. Here is how each model works and when each one fits.
An open bar, also called a host bar, means the host pays for the drinks, whether that is charged by the hour, by the bottle, by the drink or per person. A cash bar, also called a no-host bar, means guests pay for their own drinks. Drink tickets sit between the two: the host gives guests vouchers for a limited number of free drinks, and guests pay for anything beyond that.
BYOB means guests or the host bring their own alcohol rather than buying it from the bar service. It is the least common at venues and the one most limited by venue and local rules, so check it before you promise it to anyone.
| Model | Who pays | Best for | Watch out for |
|---|---|---|---|
| Open bar | The host | Weddings and parties where hospitality is the goal | Budget runs on consumption unless limited |
| Cash bar | Each guest | Large public or low-budget events | Licensing rules about selling, and guest goodwill |
| Drink tickets | Host for a set number, guest after that | Company events and mixed crowds | Ticket handling and a clear end point |
| BYOB | Guests supply their own | Casual gatherings where allowed | Venue and legal limits, and unclear liability |
An open bar is the easiest for guests, who never have to reach for a wallet. It is also the most open-ended for the host. How it is priced matters: per-person pricing makes the total predictable, while per-drink pricing follows what is actually poured. Ask which structure the vendor uses and what the total looks like if the party runs long.
You can keep an open bar manageable with a limited menu, a set service window and a final-call time. Many hosts also close the bar before the event ends and serve coffee and water to finish the night.
Think about what happens at the edges of the night. Guests who arrive early may drink more quickly than those who arrive late, and cocktail hour can use as much as the main reception. A schedule that lays out when the bar opens and closes is more useful than a vague promise of an open bar all night.
A cash bar suits large events where the host cannot or will not cover consumption. The catch is that charging guests is selling alcohol, and selling is the activity most heavily licensed. In the Kentucky example covered in our private event liquor license guide, hosts without a sales license cannot charge for alcohol at all. Rules differ elsewhere, so check yours.
Guest sentiment is the other issue. Some guests treat a cash bar at a wedding as a lapse in hospitality, and others do not mind. Your crowd and your culture decide how it lands, and a note on the invitation can set expectations.
Tickets give each guest a set number of free drinks. They cap the host's exposure while still feeling generous. They are common at company events, fundraisers and mixed-age gatherings. Once tickets run out, guests pay or move to water, soda and a non-alcoholic option.
The details matter. Decide whether tickets cover any drink or only certain ones, whether they can be shared, and how staff will handle the guest who runs out. The legal status can shift when guests pay for extra drinks, so confirm the model with the vendor and your state agency.
If you use tickets, consider handing them out at check-in rather than leaving a stack at the bar. That puts the number in each guest's hands from the start and reduces arguments over who gets how many.
BYOB changes who handles the alcohol. If guests bring bottles, the host loses control over quantity and over who is drinking what, and a venue or vendor may refuse to serve or mix drinks from alcohol they did not supply. In some places a licensed caterer's event cannot accept guest-supplied alcohol at all.
A limited bar is a different compromise. It serves beer, wine and one or two signature drinks, which keeps costs and the line under control. It is how many hosts offer a real bar without a full open bar. Pair the idea with the quantity guidance in how much alcohol to buy for a wedding.
Start with your priorities. If hospitality is the goal and the budget allows it, go open or limited-open. If you need predictable cost, use tickets or a time limit. If the event is public, the permit may decide the model for you, as the public events page explains.
Whatever you choose, tell the vendor early. Staffing, the menu and the paperwork all depend on the payment model, and you can compare vendors fairly only when each one is quoting the same structure.
Budget control looks different for each model. An open bar with per-person pricing gives a fixed number, which is easy to plan but pays for guests who do not drink. Per-drink pricing follows consumption, which is fairer but less predictable. Tickets cap the free portion at a number you choose, and a cash bar moves the cost to the guests.
A set service window gives you another way to cap spending. Closing the bar before the end of the event, or opening it only after the ceremony, limits the hours you pay for.
Paying or not paying does not change the duty to check IDs and decline service to anyone who is underage or visibly intoxicated. A free bar can lead to quicker drinking, and a cash bar can lead guests to bring alcohol in on their own, so each model needs its own safeguards. Offer food, water and non-alcoholic choices, and plan how guests will get home safely.
Insurance can differ across the models as well. The coverage question is covered in liquor liability insurance for events explained.
Guests handle any model well when they know it in advance. A line on the invitation or website about a cash bar or ticket system avoids awkward moments at the counter. Place a sign at the bar that spells out what is free and what is not, and brief the bartenders so every guest gets the same message.
Clarity matters for non-drinkers too. Say that water, soft drinks and mocktails are available in any model, so no one feels left out of the arrangement.
At an open bar the host pays for drinks. At a cash bar, guests buy their own.
They are vouchers the host gives to guests for a set number of free drinks. Guests pay for anything beyond that.
It depends on the venue, the vendor and local law. Ask both before you plan around it.
Selling alcohol is usually regulated and may require a license or permit. Check with your state agency.
Send the basics and the operator will confirm whether your date, venue and bar setup line up.