Application for a Hotel Liquor Licence
Choose below to read all the Basic Liquor Licence Information (A) you need to know OR More Liquor Licence Information (B) for a more in depth look about a liquor licence for a hotel(“hotel”).
A. BASIC LIQUOR LICENCE INFORMATION ABOUT A HOTEL
- HOW TO APPLY FOR A LIQUOR LICENCE FOR A HOTEL
- HOW TO RENEW A LIQUOR LICENCE FOR A HOTEL
- HOW TO BUY OR SELL A LIQUOR LICENCE OF A HOTEL = LIQUOR LICENCE TRANSFER
- COST OF A LIQUOR LICENCE OF AN HOTEL
- LIQUOR TRADING HOURS OF A HOTEL
- LIQUOR LICENCE TRAINING FOR STAFF OF A HOTEL
HOW TO GET A LIQUOR LICENCE FOR A HOTEL
You must submit a comprehensive, written application to the Liquor Board, Liquor Officer and Local Authority (Municipality) of the province in which your premises is located. You will have to include information, zoning documents, photos and detailed plans of your proposed Hotel. It is very important to make sure the licensing authorities can see what you have in mind. This means showing that there is a demand from the public for a licensed Hotel in the area you have in mind. They can only visualize your Hotel if your application is professional, detailed and accurate. If you fail to do this, your application will be postponed or refused. Read more on the Hotel licence application process below.
HOW TO RENEW A LIQUOR LICENCE FOR A HOTEL
Once you have your Hotel liquor licence, you need to do everything you can to keep it valid. You keep it valid by renewing it every 12 months. Please go to the “Licence Renewal Section” for all the information you’ll need to ensure your licence remains valid and will keep on generating a profit.
HOW TO BUY OR SELL A LIQUOR LICENCE FOR A HOTEL = LIQUOR LICENCE TRANSFER
Buying a Hotel liquor license means you don’t have to apply for a new liquor licence. You can carry on selling liquor without any interruption to your business - while the Hotel’s liquor licence is being transferred to you. However, you’ll have to check the very important items below. It is especially important to check the licensing documents, because without a valid liquor licence, the buyer won’t be able to sell any liquor. The important items to check are :
- Agreement of Sale – The wording of the liquor licence clause is extremely important. Ask us to avoid costly mistakes.
- Licence documents – Is the original liquor licence available?
- Licence renewal – Has the licence been renewed correctly every year? Is the proof of payment on file?
- Liquor licence compliance audit – Has this been done? Are you sure all licensing documents are complete, available on file and up to date? If not – you can lose your investment. Contact us to do a compliance check – you need liquor licence experts to help protect your new asset.
COSTS TO APPLY FOR A HOTEL LIQUOR LICENCE
The cost to GET and KEEP an Hotel liquor licence are as follows :
- Cost to get an Hotel licence
- Liquor Board Fees - You'll have to pay them the following fees :
- Application Fee - to accept your application
- Licence issuing fee - to issue your licence
- Liquor licence consultant's fee
- Liquor Board Fees - You'll have to pay them the following fees :
- Cost to keep an Hotel licence valid
- Licence renewal fee - payable every 12 months,
- Penalties / Fines - payable if you paid late or failed to enforce the licence conditions
LIQUOR TRADING HOURS OF A HOTEL
Liquor trading hours are different for most Hotels, because each province and/or municipality decides on its own liquor trading hours. For example - A Hotel in East London (Eastern Cape province) may trade until 02h00, but in Kimberley (Northern Cape province) only until 01h00. To show how complicated it can be –
- Liquor trading hours may even differ for different areas in the same municipality!
- You can apply to have your Hotel’s trading hours extended.
You therefore need to be up to speed with the liquor trading hours for your Hotel - always. If not, chances are good that you’ll be fined, have to pay penalties or even lose your business.
Contact Us if you want to know the liquor trading hours for your area. Even better – subscribe to our free newsletter and you’ll be updated on import liquor licensing matters.
WHAT IS THE DIFFERENCE BETWEEN A LIQOUR LICENCE FOR A HOTEL VS A RESTAURANT?
Liquor Fact - Hotels mainly focus on providing accommodation, which means liquor is offered for sale as a convenience or competitive advance, rather than being a primary income generating asset. Restaurants mainly focus on selling food.
LIQUOR LICENCE TRAINING FOR STAFF OF A HOTEL
Hotel staff need to be trained to be aware of what guests may and may not do – in terms of the liquor licence conditions. They must also be aware of the boundaries of their own behaviour (no drinking on duty!). For instance - a waiter on night shift should know the rules of serving liquor ordered for room service. Guests expect staff to know the names and ingredients of cocktails when they order, even if they’re not at the bar or talking to a barman. Staff members will also be responsible to enforce the conditions of the liquor licence in licensed areas outside of the bar and dining areas (restaurant/lapa). This means preventing ignorant guests from unwittingly breaking a liquor licence condition or generally making sure no guest becomes a nuisance to other guests.
B. WANT TO KNOW MORE ABOUT A LIQUOR LICENCE FOR A HOTEL?
- WHY IS A LIQUOR LICENCE IMPORTANT FOR A HOTEL?
- WHAT CAN YOU DO WITH A HOTEL LIQUOR LICENCE?
- DIFFERENT KINDS OF HOTELS / GUESTHOUSES / LODGES / B&B’S / CARAVAN PARKS
- ENTERTAINMENT - THAT WANT YOUR GUESTS WANT!
- TARGET MARKET?
- INCOME GENERATOR
- RUNNING COST OF A HOTEL
- COST OF BUYING & SELLING A HOTEL LIQUOR STORE LICENCE
- LICENCE COMPLIANCE AUDIT – NON NEGOTIABLE
WHY IS A LIQUOR LICENCE IMPORTANT FOR A HOTEL?
It is important for 2 main reasons –
- Revenue – Sales from liquor is an additional source of income for Hotels.
- Convenience - Hotel clients want the convenience of enjoying liquor of their choice on the accommodation premises. They don’t want to leave the premises to go to a liquor store to buy liquor.
- Competitive advantage – A liquor licence gives them an advantage above competitors who don’t have a liquor licence. Guests note this when checking their accommodation options and will usually choose a business with a liquor licence.
WHAT CAN YOU DO WITH A HOTEL LIQUOR LICENCE?
You can -
- sell all kinds of liquor on the Hotel premises directly to the public. It is an on consumption liquor licence, which means that your guests have to drink it on the premises. Guests can’t take it away with them and enjoy elsewhere.
- Extend it to other areas on the premises where guests may be hosted, such as an outdoor area for weddings / functions / picnics / camping.
DIFFERENT KINDS OF HOTELS / GUESTHOUSES / LODGES / B&B’S / CARAVAN PARKS
Hotels can be found just about anywhere and in all sizes. The basic choices really depend on your own likes and dislikes. The 2 main factors you’ve got to decide upon are : :
- What kind of owner would you like to be?
- Franchise / Group Hotel, such as a hotel chain (Protea Hotels, Marriot Hotels, etc) or an
- independently owned hotel / guesthouse / lodge / B&B or caravan park
- Where do you see your Hotel located?
- Stand alone – your Hotel is contained on its own property, not connected to other shops.
- Industry partner premises – as part of a mix of other businesses on the same premises. For instance, a Town Lodge with an independently owned restaurant next door, contracted to serve the guests of the Town Lodge.
RELAXED & COMFORTABLE - THAT'S HOW YOUR GUESTS WANT TO FEEL!
Guests of Hotels are looking for a safe area where they can relax and enjoy a level of comfort in line with what they paid. Apart from wanting to be able to watch sport & music events on multiple screens wherever they may be seated, they also want to be entertained while they socialize with friends or family.
A liquor licence for an Hotel will usually contain specific conditions for each activity catered for on the premises – when the licence application is approved. An example of a licence condition may be that room service may be allowed during certain hours or not at all.
TARGET MARKET OF HOTELS / GUESTHOUSES / LODGES / B&B’S / CARAVAN PARKS
The main target market of a Hotel covers the whole spectrum, from single travelers to large families and for business or leisure. The choice of entertainment will depend on the target market of the hotel / guesthouse / lodge / B&B or caravan park.
Liquor Fact - Minors may only accompany their parents / adults in an area where liquor is sold and enjoyed if food is also served in that area (i.e. restaurant).
A HOTEL LIQUOR LICENCE AS AN INCOME GENERATOR
Liquor sales is the usually not the most important income generator for hotels, for the reasons mentioned above. However, due to the convenience factor and competitive edge a liquor licence offers, it means the liquor licence of a hotel is definitely one of most important assets. To discuss additional licensing options for your Hotel - Contact Us today!
RUNNING COST OF A HOTEL LIQUOR SECTION
The running cost of a liquor section of a hotel is usually very affordable. It would usually generate more income per square metre of floor space than most other products or services offered by an Hotel.
COST OF BUYING A HOTEL LIQUOR LICENCE
Its liquor licence forms part of the assets of a hotel / guesthouse / lodge / B&B or caravan Therefore, a part of the purchase price of an Hotel will be allocated to the liquor licence. The amount will depend on the income generated by the liquor section, as well as its importance to the total guest experience in a particular Hotel.
Contact Us - if you are interested in buying or selling an Hotel with a liquor licence. We’ll refer you to reputable business broker in your area and work together as a team to ensure the liquor licence transfer is taken care of.
LICENCE COMPLIANCE AUDIT – NON NEGOTIABLE
If you already own a Hotel with a liquor section or are thinking about buying or selling yours – you should have a Licence Compliance Audit done. Why? It is vital to ensure that the liquor licence remains valid and that all licensing documents are in place. Liquor laws and inspection checklists change all the time – which means you need to be up to date. Failing to do so, may not only lose you the income you bargained for, but may result in fines and penalties! Talk to Us for a licence compliance audit – you’ll never regret it!