Liquor license suspended for Louisville restaurant near University of Louisville campus after accusations of underage drinking, WAVE reports

A Louisville bar and restaurant near the University of Louisville campus had its liquor license suspended after accusations that it allowed underage drinking, according to WAVE3. The report said the action followed allegations involving patrons who were under the legal drinking age and claimed the business permitted alcohol consumption on-site.

WAVE3 identified the establishment as Coconut Beach Tacos and Cerveza, located on Floyd Street near UofL’s L&N Stadium. The station reported that the suspension was tied to accusations that the restaurant and bar failed to prevent underage drinking, a violation that can trigger state regulatory enforcement and public-safety reviews.

In Kentucky, liquor license suspensions are typically administrative actions handled through the state’s alcohol-regulation system, and they can affect a business’s ability to sell or serve alcoholic beverages. Under the process, owners may seek additional review or respond with evidence, while regulators assess whether the allegations are supported and whether safety controls were in place.

The WAVE3 report did not outline the specific findings that regulators relied on, nor did it detail the precise timeline of the investigation or the conditions that led to the suspension. It also did not describe whether the business has publicly disputed the accusations or what additional steps, if any, are planned beyond the license being temporarily withheld.

The suspension carries immediate operational impact for staff and customers, including potential limits on the establishment’s alcohol service and revenue. For nearby families and students in the UofL area, the licensing action is intended to reduce the risk of minors obtaining alcohol and to reinforce the obligation businesses have to follow age-verification and responsible-service requirements.

As the case moves forward, the primary questions for the business and the community will be what evidence was presented to regulators, whether the suspension becomes longer or is resolved, and what compliance changes the establishment may be required to make. The WAVE3 report indicates the license was suspended in response to the allegations, putting the matter under state oversight rather than leaving it solely to civil or criminal proceedings.

The enforcement action also serves as a reminder to other venues around college campuses that underage drinking allegations can lead to regulatory consequences even before court outcomes are determined. For businesses, it underscores the importance of staff training, identification checks, and internal monitoring to prevent service to minors and limit exposure to administrative penalties.