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Restaurant Licensing Laws

Lesson 8/21 | Study Time: 60 Min
Restaurant Licensing Laws

8.1 The Importance of the Laws


We must start by discussing the importance of the different laws because a failure to understand them, and then correctly implement them, can lead to a variety of legal issues for the restaurant.


Depending on the laws that have been broken, and the severity of the issue, it is entirely possible for the restaurant to have its license for selling alcohol removed for a period of time. That could prove to be a disaster for the restaurant and it could destroy trade.


The laws cover various aspects of the restaurant industry although our main focus here is on laws surrounding the sale of alcohol.


For many restaurants, having a license to sell alcohol boosts profits by a considerable margin, so applying these laws is extremely important. Failure to adhere to them is not permitted and the local authority will be quick to take action; resulting in a number of instances where a license has been removed.


The same applies to laws surrounding the general cleanliness of the restaurant and health and safety. This is a different part of the law and it does mean that you are required to deal with different departments of the local authority, but each area plays its own role in securing the future of the restaurant.


8.2 The Need for an Age Verification Process


It is easy to understand why there is a need for a restaurant to have its own age verification process in place that every member of staff is aware of and understands.


Failing to have this in place will only lead to an increase in the possibility of an individual being served alcohol when they are underage. The fallout from this can be catastrophic for the restaurant, but there should be no point where a restaurant is willing to take a chance with serving alcohol to an individual that may be underage just because they do not have an age verification process in place.


It is a legal requirement for such a process to be in place for any premises that sells alcohol and we will cover the ins and outs of the laws in this module.


Asking for age verification is not something that is done at your discretion as it is directly linked to the restaurant being able to keep its license to sell alcohol.


8.3 Asking for Age Verification


When it comes to asking for age verification, you must take into account that some individuals may feel rather perturbed that you have asked them especially when they know that they are certainly older than 18.


However, the problem here is that you cannot take a chance and indeed a number of licensed premises will ask anybody for verification of their age if they look under the age of 25 just to make sure that everything is done correctly.


As there could be a potential issue with asking somebody for ID, it is important that you do it in the correct manner to reduce the chances of a potential issue developing.


You should always make sure that you explain to them that it is the law and it is not connected to you personally. This removes you from potential blame and they will then become aware that you are merely doing your job. This will often be enough to reduce tension surrounding this point and they

will be happy to show you their ID.


After mentioning that it is part of the regulations and laws of the country, you should inform them that there are only certain types of identification that are allowed by law. These types cover a passport, birth certificate, student identification, and a driver's license. Any other kind of identification is often not enough to satisfy the authorities and you could still end up in trouble if you do ask for the wrong type of identification.


8.4 Age Verification Laws


You must remember that age verification is something that is law and it is not merely at the discretion of the restaurant.


In Scotland, the law was altered in 2011 to enforce the idea of anybody under 25 having to verify their age and indeed this is a process that a number of companies outside of Scotland have also adopted.


It is now the case that a restaurant that is applying for a license to sell alcohol must show that it has an age verification procedure in place before they can be granted that license. They must indicate to the board what is done, the training that staff have regarding this issue, and an understanding of the law surrounding age verification before they will be granted permission.


It is set out about which type of identification is permitted by law and they were mentioned also in an earlier section. When applying for a license, it has to be shown to the authorities that there is a clear understanding as to the types of identification that are allowed as proof and that you haveindeed read and understood the laws surrounding this issue.


8.5 Alcohol Licensing Laws


The alcohol licensing laws govern the sale of alcohol and that is where the age limit comes into play.


However, there are some subtle differences to the laws that you may not initially be aware of and this is something that has to change due to your position as a restaurant manager. For example, it is important that a copy of the license to sell alcohol is displayed in a prominent position for members of the public to see. This is something that will be checked by the authorities, so ensure that it is always there.


People should be aware that you must be over the age of 18 in order to purchase and drink alcohol, however, the law is slightly different when it is connected to a restaurant.


The difference is that it is not illegal for people over the age of 18 to purchase wine, cider, or beer for somebody aged 16 to 18 when it is to be consumed at a table in a licensed premises. However, the individual must belong to the same party and it must accompany a meal and not just be a drink on its own. They also cannot sit at the bar.


More recent changes to the licensing laws have also led to a number of mandatory conditions being attached that must be followed at all times.


These changes include the need for staff to inform the customer of the volume of the drink they are ordering if they themselves do not state what they would like. If a customer in your restaurant asks for a glass of red wine, then you are required by law to inform them that a glass has 125ml of wine. Alternatively, if they ask for a spirit, then you must tell them the size of the measure and the same applies to beer.


The reason for this is that you must provide the customer with an adequate amount of information to allow them to ascertain if that is indeed the correct drink for them.


Another key point in the more updated version of the licensing act is that there is a ban on various promotions that encourage binge drinking. This will not typically apply to a restaurant, but it is still important to be aware that you should not use promotions such as buy one get one free or a special drink at a very low price. This is seen as being irresponsible and if it is something that is repeated on a regular basis, there is a chance that the license can be revoked at any point. The actual law surrounding the sale of alcohol in a restaurant is not as complex as you perhaps thought.


The main points to take into consideration include the following:


There are set times in the license for when alcohol can be served.

The license must be clearly displayed for all to see.

You must inform the customer of the quantity in a drink.

People between the ages of 16 - 18 can drink alcohol with a table meal.

However, somebody over the age of 18 has to purchase it.

You are to avoid using special alcohol promotions.


8.6 The Licensing Act 2003


The key act to focus on is known as The Licensing Act of 2003. This act was brought into force in order to regulate the sale of alcohol with the decision as to who is granted a license being left with the local authority.


It is important to note that you should not be fooled by it being referred to as being from 2003 as it is merely the basis upon which current legislation is based. There have been various updates since it was initially brought into law, so you should always refer to the most current version.


This act allowed the local authority greater flexibility with the hours between which a licensed premises was able to sell alcohol. It also introduced the idea of personal licenses for staff members. One other change was that the license does not have to be renewed every year unlike previous versions.


This point about personal licenses is important as any premises that has applied for a license to sell alcohol must also mention an individual that works with the restaurant that also has a personal license. This individual, who is often a manager, is then designated as being a supervisor with their name appearing on the license.


Aside from these minor changes, the main difference has been in the reduction of the red tape associated with applying for a license. This does not directly concern you as the restaurant manager but it is important to be aware of it.


FACT


There are over 220,000 licensed premises in the UK

Source: ias.org.uk


8.7 What Happens if you Fail to Adhere to the Laws


The actual implementation of the laws are governed by your local authority and they will, at times, conduct various test purchases in accordance with the police to ascertain if the regulations are being followed.


If you are caught inadvertently selling alcohol to individuals that may be over 18, but look potentially underage, then even though this may not lead to the license being revoked, it is still seen as being a serious breach of the regulations.


In this instance, the restaurant may be given a warning to improve their age verification process and to make sure that members of staff have had adequate training in the matter. This would, therefore, be seen as being a black mark against the license and you would then find that the business would be targeted in the near future to determine if their recommendations had been put into place.


However, if you are caught selling alcohol to individuals under the age of 18, then several things can happen, depending on whether or not it is the first time that it has happened to the restaurant.


First, there may be a fine in accordance to your area and the severity of the issue. Next, there could be an initial suspension of the license to sell alcohol for a period of time and clearly this is something that will then hurt the actual business.


Finally, the license holder could have it revoked and they would then be unable to sell alcohol from the restaurant. This may come with a time limit after which there would be a need to reapply for a license at which point there is absolutely no guarantee that it would then be granted.


Sticking to the laws regarding the sale of alcohol is essential and under no circumstances should you take any risks.


As the manager, it is your job to make sure that the staff are following the rules and there is always the chance that your own position could be in danger if the licensing regulations are not followed.


8.8 Dealing with Moments of Conflict


Unfortunately, there may very well be times where there is the potential for some kind of conflict connected to the consumption of alcohol.


The key here is to remember that the law is always on your side when you are trying to enforce the regulations and that is one point that you must put across in a clear manner in order to try to diffuse the situation.


This is also the point where your knowledge of the regulations will also help you, since it is best to quote certain aspects to regain control of a situation that is threatening to spin out of control. You must remember that there tends to be an issue of tempers being flared when alcohol is consumed although clearly in a restaurant setting that should be a bit less of an issue.


When there is the risk of conflict it is always important that you take steps to reduce the tension as quickly as possible.


This should be done by talking in a calm manner and talking in such a way that the individual is aware of the fact that there is nothing that you, or the restaurant, can do to change the situation. A law is a law, but this has to be mentioned in a friendly manner and even apologise for the fact that it is something that you have to do.


The only other time where there could be a moment of conflict is when an individual has had too much to drink. It is your responsibility to make sure that they are no longer served alcohol when they are clearly inebriated, as that is also against the law. This is connected to the health and safety of both the establishment and the customers as this also forms part of the licensing regulations.


In this instance, you must inform the customer that you are unable to serve them and the reasonswhy this is the case. They should also be escorted from the premises in a safe manner.


In short, with a potential conflict, you should consider the following:


Remember that the legislation is on your side.

Inform the individual that it is to do with the legislation and not you.

If required, show them the legislation.

Diffuse the situation as quickly as possible.

Be friendly at all times.

If an individual has had too much to drink kindly inform them of this.


8.9 Additional Legal Issues to be Aware of


We have covered the main legislation attached to a restaurant, but is also worth noting that when it comes to selling alcohol that the restaurant also has to take into account the weights and measures legislation.


This legislation makes sure that the customers get the volume of liquid that they asked for with standard measurements across the board. It is important that they receive those measurements and most restaurants will include those measurements on the menu to inform the public about what to expect.


For example, beer, lager, and cider will tend to be sold in half pint measurements, whereas spirits including gin, whisky, and vodka are sold in various measurements that include 25ml, 35ml, or multiples of either. If alcohol is being sold in a pitcher, then it is a legal requirement for the customer to be informed as to how much alcohol in volume is contained in the pitcher. With wine, the legislation states that a glass of wine must measure either 125ml or 175ml or multiples of either. However, if an open carafe is being sold, then the measurements include 250ml,500ml, 750ml, and 1 litre.


Finally, this legislation also states that if you include a brand name in the description of a drink, then that brand name must be used. Anything else would be deemed to be misleading the customer and this is against the law. So, if you change a product, then you must change the listing on the menu to reflect this.


8.10 Environmental Health


There are also laws regarding environmental health connected to areas that are to do with the preparation of food.


This is mainly an area that is covered by the head chef, but as a restaurant manager, it is still your responsibility to make sure that people are doing what is expected of them and to a satisfactory

standard.


Environmental health departments are allowed to enter a premises at any moment and carry out a spot check and they do have the power to close the restaurant if they find that it is unhygienic. Do not think that because it is connected to the kitchen that it is not your responsibility as you must make sure that cleaning rotas are being followed at all times.


8.11 Health and Safety


Finally, the health and safety act is also something that has to be covered by the restaurant manager.


Even though assessments should have taken place regarding signs and potential dangers to both the public and staff, it is still your responsibility to make sure that the restaurant is safe at all times.


For example, if there has been a spillage of some kind, then not only does it need to be cleaned as quickly as possible, but a sign showing that the floor may be wet should also be used. It is your responsibility to make sure that the restaurant is tidy, that there are no potential danger spots for the public, and that the chances of an individual being injured in any way has been reduced as much as possible.


Summary of Module


This module has been designed to deal with a number of the legal issues that are faced on a daily basis by a restaurant. As the manager, you must be aware of these issues and can then act

accordingly to make sure that they are enforced with every single customer.


A failure to understand these issues is not an option due to the very real possibility of fines, the restaurant being forced to close, or it having its license removed preventing it from selling alcohol.

The fallout from such an event happening could be potentially crippling for the restaurant, which iswhy it is so important to understand it.