Liquor Licensing: Strategies for Increasing Revenue and Growing Your Business

Posted on September 3, 2024

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WA’s hospitality industry is highly competitive and licensees are constantly seeking ways to improve a patron’s customer experience and increase profitability.

In Western Australia, the Liquor Control Act 1988 provides licensed hospitality venues with numerous opportunities to develop their business by making changes to their licensed area, extending trading hours, or modifying trading conditions to align with market demands and how they wish to operate.

With a thorough understanding of the Act, businesses can use these provisions to widen the scope of their operations and create more flexible and innovative destination Venues.

Here are some great examples that licensees may wish to consider to enhance their business and increase their revenue streams.

Expanding or Modifying a Venue’s Licensed Area

Venues often experience growth through the expansion or modification of their licensed area. Under the Act, venues can apply to alter or redefine their licensed area to accommodate more patrons or create new features in their venue, such as additional bar and dining areas, function space and entertainment/amusement areas.

Expanding a venue to incorporate a grassed area or an outdoor area is another example that can prove to be extremely popular design choice which motivates people to visit and can be a perfect function area for events like weddings, private parties and corporate events.

Modifications such as these can significantly positively impact a venue’s appeal, customer satisfaction and create additional income streams.

Just as side point, it is important to remember that changes to the licensed area, including for instance the location of a bar or dining area need to be pre-approved by the Licensing Authority before works are started.  Changes to the licensed area may also affect the venue’s maximum accommodation numbers and requirements for toilet facilities.

Extended Trading Permits 

Alfresco Areas

By adding an outdoor licensed seating area, venues can create a relaxed and attractive space, especially during good weather seasons. Alfresco dining areas offer a more laid-back setting that can appeal to a broader range of customers, including families and larger groups.

An alfresco area can also add to the vibrancy of a venue and the surrounding streetscape, which can draw customers to your business.

Extended Trading Hours

An Ongoing Extended Hours Permit allows a venue to trade outside of their regular licensed hours on a permanent basis. This is particularly useful for venues that want to extend their trading hours beyond their standard permitted closing times.

Who can apply: Primarily for hotels, taverns and small bars.

Example:  A tavern wanting to extend its closing time from midnight to 1:00am on weekends.

Extended trading hours offer an excellent opportunity for licensed venues to increase their operations outside of normal trading hours and cater to a broader customer base. It can make a venue more competitive and adaptable to changing customer demands.

Liquor without a Meal Permit

This type of extended trading permit allows licensed restaurants to serve alcohol without the requirement of a meal being consumed.  It offers greater flexibility for licensed restaurants that want to create a more casual atmosphere for patrons who may only want to enjoy a drink and helps to attract customers outside of traditional mealtimes.

This type of permit will have trading conditions placed on it that limits the scope of liquor services that can be provided, the hours where alcohol can be served and potentially the number of persons permitted on the premises whilst liquor is being served.

In addition, alcohol must only to be served and consumed to patrons who are seated at table or similar, with cutlery provided on tables to ensure that the primary purpose of the business (i.e. the provision of food) is not lost.

 One-off Extended Trading Permits

A one-off extended trading permit (one-off ETP) allows a licensed venue* to extend its normal trading hours or temporarily modify its licence conditions for a specific event or occasion.

This permit provides flexibility for a licensee to serve alcohol outside their usual licensed hours or under different conditions while staying compliant with the law.

Some examples:

  • Holiday or event-specific extensions: Venues can apply for temporary extensions during public holidays or special events, such as New Year’s Eve or large sporting events, maximizing sales during high-demand periods.
  • Temporary licensed area expansions: For special events or seasonal activities (e.g., festivals or sporting events), venues can apply for temporary licenses to extend their service area and serve more patrons without overhauling their existing operations.

NB: *Licensees that hold a special facility licence must lodge a one-off add, vary or cancel application instead.

Changing Existing Trading Conditions

Modifying the trading conditions of your venue can allow you to cater to different demographics, create a more flexible environment, and meet the evolving needs of your clientele.

There are many instances where a licensee has been granted a licence however, as the business operates and evolves these conditions become either restrictive or unworkable.

Under the Act a licensee has the opportunity to apply to add, vary or cancel one or more of their trading conditions and they should not be afraid to review conditions that are hindering their business. Some examples are:

  1. Flexibility in Operations: Variations allow licensees to adjust their licence to suit their evolving business needs, such as changes to trading hours, the licensed area, patron numbers or the type of alcohol being sold. This can lead to better business outcomes without the risk of operating outside legal boundaries.
  2. Reduced Risk of Penalties: Operating outside current trading conditions can lead to serious penalties, including fines or suspension. Applying for a variation ensures compliance with liquor licensing laws, which can protect the business from legal issues.
  3. Improved Customer Experience: Variations can enhance the customer experience, attracting more patrons and increasing revenue.
  4. Encouraging Growth: WA’s liquor laws are designed to allow businesses to grow and adapt to changing market conditions. Applying for a variation is seen as a proactive step towards business development.

Through a range of applications and extended trading permits, licensed hospitality venues can take steps to innovate, expand, and grow their business.

Fraser & Associates can help you to properly navigate the legal framework and prepare these applications on your behalf, which can help your business thrive and ensure long-term success in Perth’s, and WA generally, competitive hospitality industry.