Propel Legal Briefing - Low premises licence? No Premises Licence by Luke Elford

First appearing for Propel Hospitality in their Legal Briefing on February 8th 2023

Low premises licence? No premises licence? By Luke Elford

I once heard from a wise old licensing solicitor that “they didn’t really believe in Dry January”. They explained that they didn’t want to lull their body into a false sense of security and then disappoint it with regular alcohol consumption during the rest of the year – which made me chuckle. While approaches to Dry January vary person to person, new research by Alcohol Change UK found that almost nine million people in the UK planned to have a month off from drinking in January 2023.

This is up from an estimated eight million adults last year. Now, while these figures don’t account for the people who called it quits before 31 January or realised that they had too many friends’ birthdays in the month, it is undeniable that customers are now considering other options when it comes to choosing what to order. Whatever your feelings towards Dry January, the rise of low and no-alcohol options is impossible to ignore.

For some, alcohol-free/reduction is not just for January but is a well-ingrained lifestyle choice. Some turn away from alcohol for health reasons, others to focus on their mental well-being. The reasons are as varied as the people making the decisions, but this is where low and no-alcohol options could fill a gap. It might taint the tone of an evening if the designated driver feels like they are stuck on Coke Zeroes all night – whereas having a drink in hand, even if alcohol-free, will likely make them feel included.

It could also suppress that temptation to risk a drink before driving the gang home, which could in turn reduce crime and even save lives. Or what about that friend who is looking to better control their alcohol intake due to previous issues with drunken aggression? It could be that the low alcohol drinks prevent a problematic end to the night. What about your friend who does not drink for religious reasons but still adores a trip to the pub?

I came across two fascinating articles recently about low/no-alcohol brands that have made the brave move from the provision of products and information to actual bricks and mortar. We have seen two examples of such companies, namely Lucky Saint and Club Soda, finding their own premises. The alcohol-free beer brand Lucky Saint secured its first pub, which opens in the spring in London’s Marylebone. Club Soda, a charity encouraging mindful drinking, has opened the Tasting Room bar and shop in London’s Drury Lane, offering a huge range of low/no-alcohol beverages from a variety of brands.
This got me thinking. If you’re selling low or no-alcohol products, then you shouldn’t need to worry about licensing, right? While on a surface level that seems to make sense, it is not necessarily correct. I took a bit of time to reflect on the tangential benefits of holding a premises licence and what doors it can open for venues in the long term.
Low alcohol products are classified as beverages with 1.2% alcohol by volume (ABV) or less. However, when you see “alcohol free” on a bottle or can, this means the beverage contains less than 0.05% ABV. For reference, and because it amuses me greatly, an overripe banana contains around 0.4g of alcohol (per 100g), equating to 0.4% ABV, meaning it is definitely not alcohol free by definition. But I don’t think we will be seeing any boozy bananas being sold in your average pub any time soon, sadly.

However, when categorising drinks in licensing terms, alcohol is anything above 0.5% ABV, so if I’ve worried any greengrocers or zookeepers with my comment about bananas, I do apologise. With all of these various classification rules to keep in mind, you can understand why some people become confused. Even more so when you throw alternative descriptors like “reduced alcohol” or “light” into the mix. The bottom line is this – if you are going to sell products above 0.5% ABV then you are going to need a premises licence, or one of the other permissions as set out in the Licensing Act 2003.

The Licensing Act, however, doesn’t just apply to the selling of alcohol. It also covers a range of other activities, including:

• Showing films• Performing plays
• Hosting an indoor sporting event
• Providing boxing or wrestling entertainment
• Performing live music
• Playing recorded music
• Performing dance
• Providing something similar to live music, recorded music, or performance of dance

Collectively, the activities above are known as regulated entertainment. While there are a host of exemptions and lots of things have become deregulated, at certain times of the day or depending on the number of people in attendance, the main point is a premises licence takes your business up a notch from a basic venue to the potential of being a real community hub. These regulated activities may be very useful to businesses and their success. This includes allowing both recorded and live music to be played from 8am to 11pm each day to up to 500 people at a time, which is such a huge bonus for atmosphere building and happy customers.

However, with every benefit comes a burden, and music can become a pitfall for unwary operators. You must always consider what music is provided, how and at what volume levels. The team at John Gaunt & Partners has found enforcement activity is on the increase, including the number of noise abatement notices being issued by local authorities. Sometimes these notices have questionable and arbitrary reasoning, so it is better to be safe than sorry when approaching this issue. A venue that holds a premises licence must seek to promote the prevention of public nuisance licensing objective. This means if your business is making a huge racket at any time of day or night without any thought or process, you are only going to play yourself straight into the enforcing authorities’ hands.

Even simple things like the sale of hot food and drinks between 11pm and 5am require a premises licence. This permission to serve late-night refreshment should not be overlooked by operators, as it is not as straightforward as it may first seem. A licence looks to help manage crime and disorder throughout the night, even if it is not associated with alcohol specifically. Late-night refreshment is a separate activity and needs to be specifically applied for – so be sure to have this in place before you start serving after 11pm or before 5am.

It is quite likely that we are going to continue to see a rise in these low and no-alcohol products and brands. In turn, this might mean more of these kinds of venues start popping up across the nation and not just in London, which always seems to get first dibs with these types of new concepts. It is exciting to witness business growth in an area we have never seen before in hospitality, which is always a welcome sight.

Luke Elford is a partner at John Gaunt & Partners