One of the things I enjoy most about being an academic researcher is discovering new ideas and concepts that are unfamiliar to me. Often, these are concepts that are well established in another discipline, or in a subfield of my own discipline with which I have little familiarity. Such discoveries can provide fresh perspectives on longstanding questions and open up new avenues of inquiry. They are especially rewarding when they have direct relevance to my own research and offer new ways of thinking about the issues I study.
Recently, while revising a paper for publication in a geography journal, I encountered a concept that was new to me: social license to operate (SLO). It is a concept that originated in the mining industry during the 1990s. Faced with growing environmental concerns, community resistance, and heightened public scrutiny, mining companies increasingly realized that legal authorization alone was insufficient. Long-term operational success also depended on gaining and maintaining the acceptance of local communities and other stakeholders. This form of community approval became known as a social license to operate. I was introduced to the idea through an entry by Robert G. Boutilier and Ian Thomson in the Encyclopedia of Business and Professional Ethics.
As I reflected on the concept of a social license to operate, it struck me that it applies surprisingly well to craft breweries. Before a new brewery can open its doors, it must navigate a complex regulatory process and obtain numerous permits and approvals. At the federal level, this includes securing a Brewer’s Notice from the Alcohol and Tobacco Tax and Trade Bureau (TTB), the primary authorization required to produce beer for commercial sale.
Breweries must also satisfy a range of state and local requirements. While local regulations vary by municipality, they commonly include zoning approval, building permits, fire department inspections and approval, wastewater and sewer permits, and authorization to sell alcohol.
Yet obtaining these permits does not automatically guarantee success. Just as mining companies must earn the acceptance of the communities in which they operate, craft breweries often depend on the support and goodwill of local residents, business owners, community organizations, and public officials. In this sense, a brewery’s long-term viability rests not only on its legal authority to operate but also on its ability to earn and maintain a social license to operate.
A brewery’s social license may be “granted” and then strengthened over time through community engagement, participation in local events, support of neighborhood organizations, responsiveness to complaints, and a demonstrated commitment to being a good neighbor. A brewery that functions as a valued third place and community asset is more likely to enjoy a strong social license.
Based on my own research, as well as that of other scholars, I would argue that craft breweries generally enjoy a strong social license to operate. Brewery owners are typically deeply embedded in their local communities and often strive to be good neighbors, contributing not only to the local economy but also to the social and cultural life of the places in which they operate. By fostering community connections, supporting local initiatives, and creating welcoming gathering spaces, many craft breweries have established themselves as valued community institutions rather than simply businesses. Beyond beer production, craft breweries have become important community hubs, offering spaces for yoga classes, book clubs, running clubs, and a variety of activities that foster social interaction and local engagement.
However, Lian Dare, Jack Schirmer, and Frank Vanclay, in an article published in the journal Impact Assessment and Project Appraisal, argue that while community engagement is essential for gaining and maintaining a social license to operate, it is misleading to think of a social license as a single form of approval granted by a homogeneous community. Instead, they conceptualize social license as a continuum of multiple, overlapping licenses negotiated with different stakeholder groups at different scales of society. Viewed in this way, a proposed craft brewery may be welcomed by some stakeholders, such as nearby residents who enjoy craft beer and value the brewery as a community gathering place, while being opposed by others who are concerned about issues such as traffic, noise, anti-social behavior, or changes to neighborhood character.
While most breweries encounter little or no opposition from local residents, there are notable exceptions. For example, in 2026 residents living near Hamilton Family Brewery in Rancho Cucamonga, California, complained that the brewery had generated increased traffic, parking congestion, noise, and disorderly behavior associated with intoxicated patrons. In 2023, two residents filed a lawsuit against Savage Craft Ale Works In West Columbia, SC alleging that excessive noise and live music from the brewery had diminished their quality of life and prevented them from fully enjoying their home. Earlier, in 2016, residents in Ocoee, Florida, opposed a waiver request that would have allowed Toll Road Brewing Company to locate within 1,000 feet of several churches and mosques. In each of these cases, the dispute was not primarily about whether the brewery had legal authority to operate; rather, it concerned whether community members believed the brewery’s presence was compatible with local expectations and neighborhood quality of life.
Yet community attitudes toward beer-related venues are not always negative. In Philadelphia, PA for example, residents are currently fighting to preserve a popular beer garden that is slated to be replaced by an apartment building, demonstrating how some beer venues become valued community assets rather than unwanted neighbors. A developer plans to replace the PHS Manayunk Pop Up Beer Garden with a six-story, 73-unit luxury apartment building, but many residents have voiced concerns about increased traffic, congestion, and the loss of a valued community gathering space. For six years, the beer garden has served as more than a place to enjoy a drink; it has become a neighborhood institution where residents meet friends, celebrate milestones, and build community. The strong public reaction to its impending closure suggests that the venue has earned a social license to operate, gaining legitimacy and support by providing social value beyond its economic function. The controversy highlights how places such as beer gardens can become important components of a neighborhood’s social infrastructure, contributing to sense of place, community cohesion, and local identity and offers a powerful example of the importance of a business’s social license to operate.
While objections to craft breweries are relatively uncommon and typically focus on localized impacts, there have been instances in which residents have opposed the siting of large breweries owned by multinational corporations. The importance of having a social license to operate was demonstrated in 2020 when residents of Mexicali, a city on Mexico’s northern border in Baja California, voiced strong objections to a nearly completed brewery being constructed by Constellation Brands. Public protests prompted the government to hold a referendum, in which local voters rejected the project. Locals accused Constellation of siphoning off scarce water resources. As a result of the referendum the Mexican government revoked Constellation’s license to build the brewery. The company had no choice but to abandon the Mexicali brewery and instead shifted its investment to a new brewing facility in Veracruz on Mexico’s Gulf Coast. Constellation Brands is a large multinational corporation who brew beers such as Corona, Modelo Especial, and Pacifico for the U.S market.
Discovering the concept of a social license to operate has given me a new perspective on craft breweries and their relationship with place. While regulatory approval allows a brewery to open, long-term success depends on earning community trust and support. Most breweries achieve this through local ownership, community engagement, and the creation of welcoming gathering spaces. Ultimately, the success of craft breweries depends not only on making good beer but also on building relationships and contributing positively to community life.
Further Reading:
Boutilier, Robert G. and Ian Thomson. 2018. Social License to Operate. In: Deborah C. Poff and Alex C. Michalos, A. (editors) Encyclopedia of Business and Professional Ethics. Springer, Cham.
Dare, Melanie (Lain), Jack Schirmer, and Frank Vanclay. 2014. Community Engagement and Social Licence to Operate. Impact Assessment and Project Appraisal, Volume 32, Issue 3, Pages 188–197.
Talmage, Craig A., Caitliln Bletscher, Josh D. Newton, and Matthew M. Mars. 2025. Community Development on Tap: How Local Breweries Provide Creative Community-centered Spaces and Initiatives for Advancing Economic and Social capital. Community Development, Volume 56, Issue 6, Pages 815–836.