1. What Is an Off Licence?
An off licence, or off-licence, is a retail shop in the UK licensed to sell alcohol for consumption off the premises. Unlike pubs or bars (on-licences), off-licences sell sealed containers of alcohol for home use.
2. Common Examples of Off Licences
- Corner shops or convenience stores
- Supermarkets
- Specialist alcohol retailers (wine, craft beer, spirits)
- Petrol station shops
- Online alcohol delivery services (with the appropriate licence)
3. Legal Definition and Licensing
To legally sell alcohol from an off licence in the UK, you need:
- A Premises Licence (authorises alcohol sales at a fixed location)
- A Personal Licence (held by someone responsible for alcohol sales)
Both are issued by the local council under the Licensing Act 2003.
4. How Off Licences Make Money
Revenue comes from:
- Alcohol sales (beer, wine, spirits)
- Tobacco and vape products
- Snacks, soft drinks, and groceries
- Lottery tickets or phone top-ups
Margins are typically tight, so volume and upselling are key.
5. Requirements for Opening an Off Licence
To start one, you must:
- Choose a location with suitable foot traffic and customer base
- Register a business with HMRC or Companies House
- Apply for the necessary alcohol licences
- Install CCTV and age verification systems (Challenge 25)
- Follow health, safety, and trading standards regulations
6. Licence Costs and Application Process
- Premises Licence: Application fees range from £100–£1,905 depending on rateable value
- Personal Licence: Costs around £37 with a required qualification (e.g., BIIAB Level 2 Award)
The process includes public notices and a 28-day consultation period.
7. Operating Hours and Sales Restrictions
Local councils decide operating hours, though most off licences open between 8am–11pm. National restrictions apply on sales to minors (under 18), and some areas impose additional local conditions.
8. Challenges in Running an Off Licence
- Competition from supermarkets
- Strict licensing enforcement
- Risk of underage sales fines
- Managing late-night operations and potential anti-social behavior
Proper staff training and compliance help avoid these risks.
9. Profit Tips for Off Licence Owners
- Stock trending and seasonal drinks
- Offer multi-buy discounts
- Create bundles (snacks + drinks)
- Join buying groups to reduce stock costs
- Add convenience services like delivery or click & collect
10. Community and Local Appeal
Successful off licences often build trust with locals. A friendly, safe environment with consistent service keeps customers loyal and helps gain support during licensing renewals.
11. Online and Delivery Off Licences
Modern off licences may also operate online with:
- Same-day delivery services
- Alcohol delivery platforms like Deliveroo or Uber Eats
- E-commerce integration
All online alcohol sales still require appropriate licensing and age verification.
12. Security and Staff Training
Install security measures such as:
- CCTV and panic alarms
- Staff training in alcohol laws and refusal techniques
- Signage for Challenge 25 and ID requirements
Proper safeguards protect your business and staff.
13. Seasonal Trends in Off Licence Sales
Peak times include:
- Christmas and New Year
- Summer months
- Bank holidays and local events
- Major sports events
Planning inventory and promotions around these can boost profits.
14. Alternatives to a Traditional Off Licence
You can also consider:
- Mobile off-licence services (e.g., event sales with temporary licences)
- Pop-up alcohol stalls at markets or festivals
- Alcohol vending with age-verification technology
These options may suit those testing the market.
15. Penalties for Non-Compliance
Failing to comply with licensing laws can lead to:
- Fines up to £20,000
- Licence suspension or revocation
- Criminal charges
Regular audits and compliance checks are critical.
16. Selling Other Goods Legally
If selling tobacco, vape products, or lottery tickets, you may need:
- Registration with HMRC for tobacco
- Gambling Commission licence for lottery
- Retailer registration for vape sales
Always stay updated on laws affecting these items.
17. Future of Off Licences
The off licence sector is evolving with:
- Increased demand for local convenience
- Growth in craft alcohol and ethical products
- Expansion of online and delivery services
Adapting to consumer trends is key to long-term success.
Frequently Asked Questions
1. What does off licence mean in the UK?
It refers to a shop licensed to sell alcohol for off-premises consumption, like corner stores or supermarkets.
2. Do I need a licence to sell alcohol in my shop?
Yes, you need both a Premises Licence and a Personal Licence under UK law.
3. How much does it cost to open an off licence?
Costs vary by location and setup, but licensing alone can range from £150 to over £2,000.
4. Can I sell alcohol online with an off licence?
Yes, but you must ensure age verification and proper licensing for online and delivery sales.
5. What are the legal hours for off licence sales?
Typically between 8am and 11pm, though this can vary by local authority.
6. How can I avoid fines or losing my alcohol licence?
Follow the law, train staff, check ID, and keep your premises secure and compliant.
Conclusion
Opening an off licence is a rewarding opportunity for entrepreneurs interested in retail and community business. With the right planning, compliance, and customer service, it can become a reliable and profitable venture in any UK neighbourhood.