Application for a Deli Liquor Licence

LIQUOR FACT - A Deli is the chameleon of all licensed businesses.

Why?  Because it changes its character (“colours”), depending on what is best for it in each commercial situation.

Explain?  It is a –

• Liquor Store when it wants to sell liquor for consumption off the Deli premises and it is a
• Supermarket when it wants to sell limited quantity items of high quality and it is a
• Restaurant when it wants to sell liquor and dishes for consumption on the Deli premises.   

NB - not all Deli’s have the option of a on & off consumption licence as it’s only available in some provinces and not all Deli’s offer a sit-down facility.

This unique character of a Deli gives some idea of the value, potential and permanency of a Deli liquor licence. It’s worth biting the bullet to get a Deli licence and to hold onto your Deli licence once you have it.

A. BASIC INFORMATION ON A DELI LICENCE

• HOW TO APPLY (GET) A DELI LICENCE = LIQUOR LICENCE APPLICATION
• HOW TO RENEW (KEEP) A DELI LICENCE = YEARLY RENEWAL
• HOW TO BUY OR SELL A DELI LICENCE = LIQUOR LICENCE TRANSFER
• COST OF A DELI LICENCE
• DELI TRADING HOURS 

HOW TO GET A DELI LICENCE = LIQUOR LICENCE APPLICATION

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 Deli. You need to show the licensing authorities what you have in mind. This means proving that there is a demand from the public for a Deli in the area. They can only visualize your Deli if your application is professional, detailed and accurate. If not, your application will be postponed or refused. Read more on the Deli licence application process below.

HOW TO KEEP A DELI LICENCE = YEARLY RENEWAL

Once you have your Deli licence, you need to do everything you can to keep it valid. You do this 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 keeps on generating a profit.

HOW TO BUY OR SELL A DELI LICENCE = LIQUOR LICENCE TRANSFER

Buying a licensed Deli allows you to use the existing liquor licence to trade. You don’t have to apply for a new Deli licence. You continue selling liquor without any interruption while the Deli’s liquor licence is being transferred to you.

However, it is absolutely vital to safeguard your investment by checking that the licence documents are valid and up to date. Don't run the risk of being stopped by liquor authorities for trading with an invalid liquor licence. Do a licence compliance check - it's like having your dentist fix the small holes to avoid the root canal treatment! The most important items to check are :

• Agreement of Sale – The correct wording of the liquor licence clause is very important
• Licence documents – Is the original liquor licence, conditions and floor plan available?
• Licence renewal – Is the proof of payment of the yearly liquor licence renewal fee on file?
• Premises - Does the premises comply to liquor laws and regulation?

FREE Liquor licence compliance check :

• Has this been done? Are you sure all licensing documents are complete, available on file and up to date? Don’t take any chances or you may lose your investment.
• Upload any of these documents and we will do a compliance check - free of charge (Normal value = R3000).

ORDER licence documents :

• You can order any licensing documents you want from us, such as a original licence replacement or floor plan.
• Place your order and we'll be in touch.

COST OF A DELI LICENCE

The cost structure of a Deli licence is quite simple. It costs can be described as follows :

• Cost to get a Deli licence
  • Liquor Board Fees - You'll have pay to them the following fees :
    • Application Fee - to accept your application
    • Licence issuing fee - to issue your licence
  • Liquor licence consultant's fee
    
    
• Cost to renew a Deli licence valid
  • Licence renewal fee - payable every 12 months,
  • Penalties / Fines - payable if you paid late or failed to enforce the licence conditions

DELI TRADING HOURS

Deli trading hours are different for each province and/or Municipality. Each province and/or Municipality decide on its own liquor trading hours. For example - A Deli in Cape Town (Western Cape province) may trade until 20h00, but in Port Elizabeth (Eastern Cape province) only until 17h00. This can become quite complicated, for instance :

• Liquor trading hours may even differ for different areas in the same Municipality!
• Extended liquor trading hours. You can apply to have a Deli’s trading hours extended in some areas. So, 2 Delis can be next to each other, but have different trading hours if one of them successfully applied to extend its liquor trading hours.

NB - A Deli owner needs to know the liquor trading hours for Deli’s at all times. If not, chances are good to get fined or having to pay penalties or - even lose the 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.

B. WANT TO KNOW MORE ABOUT DELI'S? 

• WHY IS A LIQUOR LICENCE IMPORTANT FOR LIQUOR / BOTTLE STORE?
• WHAT CAN YOU DO WITH A DELI LICENCE?
• DIFFERENT KINDS OF DELIS
• TARGET MARKET
• INCOME GENERATOR
• RUNNING COST OF A DELI
• COST OF BUYING OR SELLING A DELI LICENCE
• LICENCE COMPLIANCE AUDIT – A MUST

WHY IS A LIQUOR LICENCE IMPORTANT FOR A DELI?

It’s obvious, isn’t it? It is a very important asset to have for a Deli.  Why? It offers a unique opportunity to -

• sell additional products, other than liquor, 
• draw customers into the Deli who wouldn't otherwise have considered buying products at the deli
• market liquor for sale online
• deliver liquor - with or without other deli products. 

WHAT CAN YOU DO WITH A DELI LICENCE?

The question should rather be - what can’t you do with a Deli liquor licence?  Depending in which province the Deli is located, it may be limited to sell wine.   Therefore, a Deli liquor licence will be allowed to sell liquor for one or both of the following ways :  

• The off consumption element allows a Deli to –
  • sell liquor directly to the public for consumption off the Deli premises. Remember, they aren't allowed to open the bottle and drink it in the Deli. You have to take it away with you and you can then enjoy your liquor at home, take it to a restaurant or party or wherever it is legal to drink.
• The on consumption element allows a Deli to –
  • sell liquor directly to the public for consumption on a sit down section of the Deli premises. Remember, sit-down customers can only enjoy their liquor on the premises.

DIFFERENT KINDS OF DELI'S

Deli's can be found in all sizes and locations. The basic options are the following :

Ownership

• Franchise Deli. You buy into a franchise group, such as “Deeg”, “Cafe2Go” and Ikigai Deli & Coffee Shop. The main advantages are that you get -
  • a proven, successful business model and
  • better prices due to the buying power of the franchise group.
• Independently owned Deli. You are your own boss and have the power to decide how you would like to manage every aspect of your business.

Location

• Stand alone – your Deli is contained in its own property, not connected to other shops.
• Drive-through – your client stops in his/her car, pays and receives the liquor ordered a window, just like any drive-through fast food outlet.
• Shopping centre – the Deli shares parking, toilets, security and other services with a large mix of other businesses

DELI TARGET MARKET 

The target market of a Deli really is anyone over the legal drinking age.   Minors will be allowed on the premises, if they are in the company of an adult and food is served together with liquor.

 A DELI AS AN INCOME GENERATOR

A Deli licence can be an excellent income generator, as it is versatile and allows you to sell liquor in a number of ways -

• on and off / off the shopping floor inside your shop,
• deliver on order, as well as
• through an online e-commerce Deli.

To discuss additional options, don’t hesitate to Contact Us

RUNNING COST OF A DELI

A Deli’s running cost is relatively unflexible and stable. Rent, staff salaries, insurance, advertising, security covers 90% of overheads. The great thing therefore is that overheads costs are very predictable with little or no unpleasant surprises, making planning extremely easy, as well as keeping to a budget.

COST OF BUYING A DELI LICENCE

Good news. There’s a Deli to be found for everyone’s budget. The asking price is usually directly related to its –

• turnover (total value of all sales), and/or
• nett profit (what you take home)

Depending on your personal circumstances and budget, you may want to buy a boutique wine store or start a large Deli. Contact Us – we’ll refer you to reputable business broker in your area.

LICENCE COMPLIANCE AUDIT – NON NEGOTIABLE

All licence holders – those with a licence or those thinking about applying for a liquor licence – must have a Licence Compliance Audit done. Why? Apart from being very convenient, it gives -

• a clear picture of the requirements to get a liquor licence and
• clear guidelines on how to keep a liquor licence valid.

More importantly – getting up to date licensing information is the best way of ensuring you won’t be fined or face legal action. Talk to Us about checking if a licence is valid and compliant. You cannot afford not to! – customized for your business and premises.