LCQ Off-Licence and On-Licence Differences 2 — Questions and Answers
Question 1: Under NZ law, can a restaurant holding an on-licence also sell bottled wine for takeaway?
- Yes — on-licences automatically cover takeaway sales
- Yes, but only with an off-licence endorsement added to the on-licence (Correct answer)
- No — restaurants must obtain a separate off-licence for all takeaway alcohol sales
- Only if the takeaway sale is made to a person who dined in the restaurant that evening
Correct answer: Yes, but only with an off-licence endorsement added to the on-licence
An on-licence can be endorsed with an off-licence endorsement, allowing a restaurant to sell bottles of wine (or other alcohol) for takeaway, without needing a completely separate off-licence.
The Act allows the DLC to endorse an on-licence with a permission to sell takeaway alcohol, effectively adding limited off-licence functionality to the on-licence. This is common in restaurants that wish to offer customers the option of taking a bottle of wine home. The endorsement limits the types and quantities of alcohol that can be sold for takeaway — it does not create a full bottle-store operation.
Question 2: In NZ, what type of licence would a winery open to the public for sales and tastings require?
- An on-licence for the tasting room and a separate off-licence for sales
- A single licence with appropriate conditions covering both tasting and retail sales, or separate on and off licences (Correct answer)
- A special licence for each tasting event
- A club licence if membership is required for entry
Correct answer: A single licence with appropriate conditions covering both tasting and retail sales, or separate on and off licences
A winery typically requires both on-licence functionality (for consumption on site during tastings) and off-licence functionality (for retail bottle sales). This can be achieved through a single licence with both functions covered or through separate licences.
Wineries, breweries, and distilleries that are open to visitors face a dual licensing challenge: tastings (consumption on-site) require on-licence authorisation, while selling bottles to take away requires off-licence authorisation. The DLC can grant a single licence that covers both activities with appropriate conditions, or the operator can hold separate on- and off-licences. The specific structure depends on the nature and scale of the operation.
Question 3: Under NZ law, what conditions typically attach specifically to off-licences that do not apply to on-licences?
- Off-licences must not sell alcohol during the first hour after opening
- Off-licences often have conditions restricting the types of alcohol that can be sold (e.g. restricting spirits or fortified wine in some locations) as well as merchandising conditions (Correct answer)
- Off-licences must have a food court attached to the premises
- Off-licences cannot display alcohol near the store entrance
Correct answer: Off-licences often have conditions restricting the types of alcohol that can be sold (e.g. restricting spirits or fortified wine in some locations) as well as merchandising conditions
Off-licence conditions often focus on stock (restricting high-strength products in vulnerable communities), product placement and display, and compliance with any Local Alcohol Policy restrictions. These differ from on-licence conditions, which focus more on intoxication management and patron conduct.
On-licence conditions address the management of alcohol consumption on the premises (food availability, intoxication management, one-way doors, security staffing). Off-licence conditions focus more on point-of-sale issues: in some communities DLCs impose restrictions on the sale of high-strength spirits or fortified wines, require prominent display of the duty manager's name, restrict alcohol display to specific areas, or impose hours shorter than the statutory maximum.
Question 4: Under NZ law, what obligation does an off-licence holder have if their premises are adjacent to a school or church?
- The off-licence is automatically revoked
- Proximity to a school or church is a factor the DLC considers when granting or renewing a licence, and may result in additional conditions being imposed (Correct answer)
- Off-licences within 500 metres of a school are prohibited under the Act
- No specific obligation — the DLC cannot consider location in licensing decisions
Correct answer: Proximity to a school or church is a factor the DLC considers when granting or renewing a licence, and may result in additional conditions being imposed
Proximity to sensitive sites such as schools, churches, and community services is a factor the DLC must consider. It does not automatically prohibit a licence but may influence conditions and is a ground for public objection.
The Act and Local Alcohol Policy frameworks allow the DLC to take into account the location of proposed or existing licensed premises relative to sites such as schools, churches, marae, community centres, and medical facilities. The DLC must consider the impact of the premises on the amenity and good order of the locality. Proximity to a school does not automatically preclude a licence but may be a ground for imposing conditions, restricting hours, or supporting a community objection to the licence.
Question 5: In NZ, can an off-licence sell alcohol at any time once it opens, or are there restrictions on how alcohol is presented at opening?
- Off-licences can sell alcohol from the moment they open — there are no special morning restrictions
- There are no specific opening time restrictions within licensed hours, but the minimum trading start time is 7 am for off-licences (Correct answer)
- Off-licences must not sell alcohol before noon on weekdays
- Off-licences can only open after the closest on-licence begins trading
Correct answer: There are no specific opening time restrictions within licensed hours, but the minimum trading start time is 7 am for off-licences
Off-licences may trade from as early as 7 am under the Act's default maximum hours, so alcohol can be sold from when trading begins at or after 7 am.
The default minimum opening time for off-licences under the Act is 7 am. This means an off-licence such as a supermarket can begin selling alcohol from 7 am if their general trading hours begin before or at that time. A Local Alcohol Policy could potentially require a later opening for off-licences, but the Act itself sets 7 am as the earliest point. There are no specific 'morning restrictions' beyond this floor.
Question 6: Under NZ law, what is the significance of an off-licence being in a 'club licence' setting (such as a social club)?
- A club can hold an off-licence to sell alcohol to the general public
- A club licence restricts supply to members and guests — an off-licence would be needed to sell alcohol to non-members for takeaway (Correct answer)
- Club licences automatically include off-licence entitlements
- There is no connection between club licences and off-licences in NZ law
Correct answer: A club licence restricts supply to members and guests — an off-licence would be needed to sell alcohol to non-members for takeaway
A club licence only authorises supply to members and their guests. If a club wishes to sell alcohol to the general public or to non-members for takeaway, it would need to hold a separate off-licence.
Some social clubs wish to generate income by selling alcohol to the public in addition to members. A club licence alone does not permit this. If a club wants to operate a bottle store or retail alcohol shop open to the general public, it must apply for and hold an off-licence for that activity. Many large clubs hold both a club licence for member functions and an off-licence for their public bottle shop.
LCQ Off-Licence and On-Licence Differences 2
Under NZ law, can a restaurant holding an on-licence also sell bottled wine for takeaway?