If you’re thinking of opening up a restaurant, then you need to start thinking about getting a liquor license. If your establishment wants to serve and sell alcoholic beverages, then obtaining a liquor license is a must.
There are numerous benefits to getting a liquor license. Below, we highlight four key reasons to secure an alcohol license.
1. Increase the average restaurant tab
A liquor license affords your restaurant the ability to provide its patrons a more complete dining experience. In a particularly busy environment, a liquor license allows patrons waiting for a table to migrate towards the bar for a few drinks.
Good drinks are the perfect accompaniment to any meal. And with current alcohol trends leaning towards premium, new taste experiences like craft spirits, craft beers, and cask-strength whiskeys, having a liquor license enhances the sit-down component of your restaurant.
Financially speaking, a liquor license enables you to recoup the costs of your business. For the average restaurant, the margins on booze can be around 20 to 40 percent. A full liquor license will help your check averages increase by at least 25 percent.
2. Better protect your establishment
Crowd-sourced online review sites like Yelp, TripAdvisor, Google, and others play a significant role in the success of a restaurant. Positive reviews are crucial to small businesses like your establishment. Statistics show the enormous influence of online reviews on small businesses.
According to a 2015 Consumer Trust Survey, online reviews were ranked only second to family and friends as a trustworthy source of information. Consumers are more likely to spend more (up to 30 percent more) on a business with excellent reviews.
Conversely, negative reviews could harm your establishment. Just one negative review can diminish your consumer base by 22 percent. Four or more negative reviews/comments can result in 70 percent loss of potential customers.
Not having a liquor license weakens the complete dining experience, forcing patrons to seek someplace else to spend their money.
3. Offer more variety
No matter the type of liquor license you obtain (beer and wine package licenses, BYOB, or liquor licenses), having a liquor license means you can provide your customers more variety.
Rising consumer income and increasing demand for premium alcohol are changing the alcohol landscape. Brand loyalty is on the decline as consumer preferences are shifting towards more experimentation across liquor categories and style.
Craft beer and spirits, and a focus on provenance and terroir, are dominating the alcohol industry, and many consumers want to see this trend reflected in restaurants. Having the right liquor license allows your establishment to take advantage of these current trends to drive sales and increase revenue.
4. Access better marketing opportunities
Obtaining a liquor license allows your establishment to make your promotional marketing opportunities personalized to your customer base. Certain hospitality offers like BOGO promotions, loyalty programs, wine tastings, or other special events are great incentives generating big opportunities for your restaurant.
A liquor license enables you to take advantage of online and offline marketing opportunities. These simple but effective marketing promotions will generate repeat business, allowing your business to attract a diverse crowd.
Choosing the appropriate liquor license for your restaurant
In today’s highly competitive market, not having a liquor license puts your establishment at risk of falling behind its competitors. Drinks sell well, especially for new restaurants struggling to see a profit. And while obtaining a full liquor license is ideal, restaurants starting out may not be able to simply afford it.
With that said, there are a few alternatives available to still offer a great drinking experience. A BYOB license or a beer and wine license are two inexpensive alternatives to offering a great drinking program at your restaurant.
With specialty beer and wine categories on the rise, your restaurant can still create a robust drinks menu that allows you to serve a diverse range of alcoholic beverages favored by customers looking for a drink with their meal. These options can be quite enticing for new restaurants just starting out.
AUTHOR BIO Richard Bantock is the President of Liquor License Consultants, Inc. (formerly known as The Liquor License Guy) which specializes in the purchasing and selling of Florida liquor licenses. For 20 years, he successfully operated liquor store, nightclub, bar and restaurant companies, gaining first-hand knowledge of business planning, financial negotiations and the liquor licensing process. Liquor License Consultants, Inc. reflects his insight and expertise.
