Propel Legal Briefing - Game On! by Leigh Schelvis

First appearing for Propel Hospitality in their Legal Briefing on 10th January 2024.

As we journey deeper into January, which is traditionally a gloomy month for the hospitality sector, there is still some cause for optimism - I promise you. Whilst people are still recovering from their heavy spending (and drinking) over the festive period and holding out for that all-important payday, there is still plenty of opportunity on the horizon for a return to a bustling trading period. So, strap in because 2024 will be what we make of it and we will continue to evolve and adapt with the changes that the year presents.

It is clear to see that the industry is continuing to battle the challenges and setbacks caused by the Covid-19 pandemic – including rising energy costs and the cost-of-living crisis. This combined with vigorous enforcement actions initiated by the responsible authorities in the latter part of 2023 leaves you understanding why some operators were left approaching the new year with caution. 

However, not everything is set to be so clear cut this year as there is the potential for the nation to feel a sense of “new year – new me” or more specifically “new government”. As the prospect of a General Election looms with number 10 suggesting a potential occurrence towards the later part of this year, political parties are actively drafting their manifestos. It is time for the hospitality sector to step up, set out our demands and ensure that our voices are heard.

At the top of the agenda has got to be the appeal for Governmental action to reduce cost burdens on the sector which in turn may provide a well needed increase in profits. Proposed measures include a reform of business rates, the introduction of an apprenticeship levy to support employment and also a reduction in the rate of VAT for hospitality establishments. This cocktail of Government support for the sector could play a pivotal role in enabling the growth and revitalization of hospitality, as opposed to just clinging on for survival.

Whilst it is anticipated that businesses will be placing pressure on the Government to create policies that are favourable to the sector, the industry must also explore new opportunities within its realm to boost its own revenue.

The upcoming sporting calendar for the year offers ample prospects for increased takings. In addition to annual events like Wimbledon, the Grand National, Football Cup finals, Rugby Six Nations fixtures and even the Superbowl, the 2024 schedule features the EUROS (with England, Scotland, and potentially Wales), the Olympic and Paralympic Games (with Team GB aiming for gold), the T20 Cricket World Cup, and the highly anticipated heavyweight world champion fight between Tyson Fury and Oleksandr Usyk on February 17. The British summertime is always a great opportunity to take advantage of the increased footfall as the public always love to revel al fresco in the sunshine with a drink when the weather finally takes a turn for the better.

All of these great sporting events and opportunities for celebrations may highlight a need for a one-off change to your premises licence. If your venue is looking to utilise its allowances for Temporary Event Notices (TENS), it is important to note that the yearly entitlement has now been reduced back to the pre-pandemic amount (unfortunately). Premises are now authorised to host a maximum of 15 events per calendar year, amounting to a total of 21 days on which temporary events may take place.

However, if the Premises wishes to preserve their TEN entitlements and hold onto them for other occasions, Licence Holders should initially take a look at their licence (specifically around the non-standard timing provisions) to determine the current permissions for the Premises. In the absence of adequate provisions for the desired events/hours or licensable activities, you can consider adjusting your licence. This could involve varying existing conditions or incorporating and/or varying non-standard timings to accommodate events of national or international significance. Premises may also explore options such as extending operating hours, increasing licensable activities, and including external areas like beer gardens or car parks within their licensed areas.

It is advisable to seek legal advice (John Gaunt & Partners are always here) before embarking on such variation applications as complications can sometimes occur due to a premises’ compliance history, the presence of a Cumulative Impact Assessment (CIA) Policy, issues within the local area or provisions within the local Statement of Licensing Policy. These factors could impact the likelihood of the application being granted.

In the realm of spicing up the drinking scene, competitive socialising has been the trailblazer, expanding the boundaries of the hospitality experience. We are seeing the relationship between socialising and technology creating exciting opportunities. The good ol' English pub's dartboard is staging a comeback, thanks to the heroic efforts of 16-year-old Luke Littler at this year's World Darts Championship. Once seen to be a pub game that was at the heart of the local community, in recent years, darts has seen a decline in its interest.  However, the approach of tech-savvy businesses such as Flight Club or Boom Battle Bar alongside the newfound buzz created by Master Littler, might just encourage people back to the pubs and bars to engage in this ever-popular pastime.

Under the Licensing Act 2003, an activity becomes an Indoor Sporting Event and therefore Regulated Entertainment if it meets the definition outlined in Schedule 1 of the Act. The good news is that is deregulated between 8am and 11pm provided it doesn’t meet certain audience criteria. It is worth noting that “Indoor Sporting Event” under the Act carries a very wide application and could include such activities as a 5 a-side football match, darts or potentially even a chess tournament.

As always, if you are looking to revamp your Premises by including darts or another indoor sporting activity (goodness, there is even axe throwing in some places now), the first thing you need to do is to check your Premises Licence. Whether you intend to install a dartboard, organise local darts competitions, or create an atmosphere reminiscent of "Ally Pally," it's essential to confirm that your Premises Licence allows for such activities and doesn't include restrictive conditions.

While there may be legitimate reasons for the hospitality sector to have some concerns going into this year, there are equally compelling reasons for a dose of optimism as we venture further into 2024. The upcoming Spring Budget, the prospect of a General Election, and the potential emergence of hospitality-centric policies present a buffet of opportunities to re-energize the sector. With a promising lineup ahead, the industry should don a positive attitude and be all set to tackle the current challenges head-on, aiming not just for the finish line but a Champagne Finish. Game On!

John Gaunt & Partners Licensing Solicitors would like to wish all members of the hospitality sector a very happy and prosperous 2024.

By Leigh Schelvis