As featured in the latest edition of QHA Review Magazine
For many Queensland hotels, a detached bottle shop is an important part of their business model, providing an additional revenue stream. However, getting approval for and operating a detached bottle shop comes with strict requirements.
What is a detached bottle shop?
A detached bottle shop is a retail outlet which is approved to:
- Sell liquor to the public for takeaway purposes; and
- Supply liquor promotional samples to the public free of charge for consumption on the premises,
By way of endorsement of a detached bottle shop permit on a commercial hotel licence.
Unlike an onsite bottle shop which would be situated in the same location as a commercial hotel, a detached bottle shop can be located elsewhere, subject to approval.
Where can a detached bottle shop be located?
A detached bottle shop must not be located further than ten kilometres from the commercial hotel by using the shortest route which may be taken by road.
However, the OLGR may approve a detached bottle shop that is more than ten kilometres from the commercial hotel, if the detached bottle shop will be in a locality where there is no licensed premises at which takeaway liquor is sold and it will primarily service the residents of the locality and because of the locality’s population or projected population, the locality is not likely to attract the establishment of licensed premises other than a detached bottle shop.
When can a detached bottle shop trade?
The standard trading hours for a detached bottle shop are 10:00am to 10:00pm, seven days a week, unless a restricted trading day applies (such as Good Friday, Christmas Day, or Anzac Day).
However, the Office of Liquor and Gaming Regulation (OLGR) will consider granting extended trading hours for standard trading hours between 9:00am and 10:00am where a licensee can satisfy the OLGR that the ‘demonstrated need’ requirement has been met and the extended hours are necessary to meet the requirements of the locality.
What are the floor plan requirements for a detached bottle shop?
A detached bottle shop must meet certain fit-out standard, including:
- being of a suitable size (not more than 150m2);
- have direct access from a public place;
- must not have direct access from any other business premises; and
- must not have any drive-through facility.
Further, there are also guidelines regarding the sale of non-liquor items within a detached bottle shop. Specifically, a licensee must ensure:
- no more than 5% of the total floor space is used to display and sell non-liquor items;
- the floor space used for this purpose must be separate, distinct, and in one area; and
- the non-liquor items must complement the off-premises consumption of liquor (such as cheese, crackers, potato chips, and nuts).
How many detached bottle shops can a hotel operate?
A commercial hotel licensee can operate up to three detached bottle shops in addition to an onsite bottle shop.
There is the ability to transfer detached bottle shops if licensees need to move a detached bottle shop from one commercial hotel licence to another. Accordingly, where a licensee owns more than one hotel, the licensee can be strategic about which licence a particular bottle shop detaches from to maximise opportunities within ten kilometres.
Conclusion
Detached bottle shops can provide strong commercial opportunities; however, they are tightly regulated, and licensees should ensure they understand the rules before applying for or operating a detached bottle shop. If you own, manage, or are considering acquiring a hotel in Queensland, and are wanting to apply for a new detached bottle shop, transfer an existing detached bottle shop, apply for extended trading hours for a detached bottle shop, or have any other concerns regarding compliance for your detached bottle shop, please don’t hesitate to contact me on (07) 3224 0230 if I can assist you with this.
