How to decide whether to sell alcohol and what licences you need

The bottom line: what you must know

If you want to sell alcohol to your guests, even indirectly through a welcome drink or honesty bar, you legally must get two separate licences from your local council: a Premises Licence for the venue itself, and a Personal Licence for at least one individual who will authorise the sales. This is a strict legal requirement, so it's a decision to make early on as the process can take several months.

What counts as 'selling alcohol'?

The law has a very broad definition of what constitutes a 'sale' of alcohol. It's not just about selling a pint over a bar. You are almost certainly 'selling' alcohol if:

• You run a cash bar for guests or the public.
• You provide an 'honesty bar' where guests leave money for drinks they take.
• You offer a 'free' welcome drink or a bottle of wine as part of a package or room rate. Because the guest has paid for the overall service, the alcohol is not considered a gift.
• You host a ticketed event where drinks are included in the ticket price.

If money changes hands at any point for a service that includes alcohol, the law considers it a sale. Giving alcohol away for free with absolutely no expectation of payment (for example, at a one-off private party) is different, but this is rarely the case in a business context.

The two licences you cannot do without

To sell alcohol legally, your business needs to be covered by both a Premises Licence and a Personal Licence holder. They do different jobs but work together.

Licence Type	What it's for	Who or what it applies to
Premises Licence	Authorises the venue itself to be used for the sale of alcohol and other 'licensable activities' (like playing live music or serving hot food late at night).	The physical building or location.
Personal Licence	Authorises a specific individual to sell alcohol or to supervise the sale of alcohol by others.	A qualified person, not the building.

The Designated Premises Supervisor (DPS)

Every business that holds a Premises Licence must appoint a Designated Premises Supervisor (DPS). This is the person who has day-to-day responsibility for the running of the business and acts as the main point of contact for the police and the council. Crucially, the DPS must be a Personal Licence holder.

Without a DPS in place, you cannot legally sell any alcohol, even if you have a Premises Licence.

Your action plan

Getting licensed can feel complicated, but it breaks down into a clear set of steps:

1. Decide if it's right for you: First, decide if offering alcohol fits with your business concept and target guests. Weigh the extra revenue and enhanced guest experience against the cost and administrative effort of getting licensed.
2. Choose your DPS: Identify who in the business (it could be you or a manager) will take on the responsibility of being the Designated Premises Supervisor.
3. Get qualified: The person you choose must first pass a short qualification, the Award for Personal Licence Holders (APLH), before they can apply for their Personal Licence.
4. Apply for the licences: Once you have a Personal Licence holder ready, you can proceed with the applications for both the Personal Licence and the Premises Licence from your local council.

A final word of advice

The licensing process, particularly for the Premises Licence, is detailed and involves consulting with various authorities like the police and fire service. It is not a quick process. You should start looking into it at least 3-4 months before you plan to open, as any delays could seriously impact your launch plans.