Getting your floor plan right can make all the difference to your alcohol licence application, says alcohol licensing lawyer Pervinder Davies...
Launching a new restaurant, bar, bottle store or other licensed business, there are plenty of demands on your budget before you have even opened the doors.
So, I completely understand when a client says to me: “Why would I spend money on detailed plans or building work when I don’t even know whether my alcohol licence will be approved?”
It’s a fair question – nobody wants to spend money unnecessarily. But there’s a catch.
When you apply for an alcohol licence, the licensing authority needs to properly understand what you are proposing. Under the Sale and Supply of Alcohol Act 2012, the design and layout of the premises is one of the matters considered when an application is assessed.
That means your floor plan is not simply another piece of paper to tick off the application checklist. It helps define exactly what you are asking the licensing authority to approve.
“The design and layout of the premises is one of the matters considered when an application is assessed.”
What does your plan actually say about your business?
Think about your premises from the perspective of someone who has never stepped inside it.
Where will alcohol be sold? Where will customers consume it? What part of the building or outdoor area is intended to form part of the licensed premises? Where are the entrances and exits? Where are the toilets? How do customers move through the premises?
These may sound like straightforward questions, but the answers can become important when an application is being assessed.
Different types of alcohol licences also authorise different activities. An on-licence generally allows alcohol to be sold or supplied for consumption on the premises, while an off-licence generally concerns alcohol sold or supplied for consumption elsewhere.
Your proposed layout therefore needs to make sense alongside the type of licence and business operation you are proposing or currently operate.
Resist the temptation to “sort it out later”
One mistake I see is businesses trying to keep their upfront costs down by providing the bare minimum, with the intention of dealing with the detail once they know whether the licence will be granted.
If your plans do not clearly reflect what you intend to operate, or there are unresolved questions about the proposed layout, you may end up dealing with requests for further information, changes to your proposal, or issues that could have been identified much earlier.
There can also be other regulatory requirements sitting alongside alcohol licensing. Alcohol licensing guidance specifically notes that district plan consent requirements must be met before applying for a licence. Building and planning requirements may therefore need to be considered as part of the bigger picture rather than treating the alcohol licence in isolation.
This is why I encourage clients to think about these issues before they lodge their application.
Spend wisely, not blindly
None of this means I recommend spending a large amount of money before you know whether your business will proceed. Quite the opposite: the goal is to spend wisely rather than blindly.
Before committing to building work, understand what your alcohol licence application needs to demonstrate. Identify any planning or building issues early. Make sure the layout you are proposing works for the business you actually intend to operate. And, where necessary, get the right professional advice before making expensive commitments.
The Sale and Supply of Alcohol Act 2012 requires licensing decision-makers to consider a range of matters, not just the applicant and proposed trading hours. These include the design and layout of the premises, along with matters such as the applicant’s suitability, the relevant local alcohol policy, amenity and good order, and the systems, staff and training proposed to comply with the law.
So, when I look at a floor plan for a client, I don’t see it as “just a drawing”. I see it as part of the story of the application. It helps explain what the business is, how it will operate, where alcohol-related activities will take place, and exactly what the licensing authority is being asked to approve.
Getting that story clear at the beginning can save time, money and frustration later. Sometimes the cheapest option at the start is not the cheapest option in the end.
Pervinder Davies specialises in alcohol licensing law and is a director of Pervinder Davies Law in Christchurch.
pervinderdavieslaw.co.nz
