What you need to think about before taking licensed premises
If you're looking at opening a restaurant, café or bar in Edinburgh and alcohol is going to be an important part of the business, it's worth looking at the licensing position early.
We've seen people find the right property, agree terms and only then start asking what they need to sell alcohol.
We'd rather have that conversation at the beginning.
There isn't simply one “alcohol licence”. The premises needs to be properly licensed, someone needs to hold a Personal Licence and staff selling alcohol need the appropriate training.
Does the property already have a premises licence?
This is one of the first things we'd establish if you're taking over an existing restaurant or bar.
A Premises Licence relates to the property and includes an Operating Plan setting out how the premises can operate.
If there's already a licence, that's a good starting point.
But don't assume that because the previous occupier sold alcohol you'll automatically be able to operate exactly as you want.
What hours does the licence cover?
Can alcohol be consumed on the premises, taken off the premises, or both?
Does the existing Operating Plan actually suit your business?
If the property isn't already licensed, you'll potentially need to make a new application to Edinburgh Licensing Board.
What about a Personal Licence?
This is different from the premises licence.
A Premises Licence relates to the property.
A Personal Licence belongs to an individual.
Licensed premises need a designated premises manager who holds a Personal Licence, and alcohol sales need to be properly authorised.
To obtain a Personal Licence you'll need the appropriate licensing qualification and there are ongoing refresher training requirements.
Not every waiter or bartender needs their own Personal Licence, but staff selling or serving alcohol need the required training before they're authorised to do so.
There are local training providers who can deal with both Personal Licence qualifications and staff alcohol training.
Do Police Scotland get involved?
Yes.
Police Scotland has a formal role in the licensing process and can provide information or make representations.
Applications are considered against Scotland's licensing objectives, which include preventing crime and disorder, securing public safety and preventing public nuisance.
The location and proposed operation can therefore matter.
If you're looking at premises in an area already containing a lot of bars, pubs and late-night venues, don't simply assume another licence will be straightforward.
Opening hours, capacity, the type of operation and the effect on the surrounding area can all be relevant.
The final decision is made by Edinburgh Licensing Board, not Police Scotland, but the police are an important part of the licensing process.
How late can you sell alcohol?
Edinburgh Licensing Board currently has indicative terminal hours which include:
- 1am for licensed premises generally
- Up to 3am for premises offering restaurant facilities and certain entertainment
The important words there are “up to”.
Having a restaurant doesn't automatically mean you're going to be able to sell alcohol until 3am.
The Board considers the individual premises and the proposed Operating Plan.
If you're underneath residential flats or in a mixed residential and commercial area, later opening can raise obvious issues around noise, customers leaving the premises and disturbance to neighbours.
So if late opening is important to making the numbers work, establish the position early.
Don't sign a lease assuming you'll get a 3am licence afterwards.
Edinburgh also has arrangements for extended hours during certain periods such as the Festival and Christmas/New Year, subject to the relevant requirements.
Serving food late?
There's another licence that can sometimes get overlooked.
If you're selling food between 11pm and 5am, you may also require a Late Hours Catering Licence.
That's separate from the alcohol premises licence.
It can be particularly relevant to late-night restaurants and takeaways.
If late-night trading is an important part of the business, we'd want that checked before committing to the property as well.
Is it worth using a local licensing specialist?
If your business depends on selling alcohol, we'd seriously consider getting a local licensing solicitor or specialist adviser involved early.
And by local, we mean someone who regularly deals with alcohol licensing in Edinburgh and understands how Edinburgh Licensing Board works.
They can help make sure the application and Operating Plan properly reflect how you intend to run the business, spot potential problems early and deal with any questions or objections that arise.
If the application needs to go before the Licensing Board, they can also represent you or attend with you at the hearing.
That's particularly worth considering if you're applying for a new premises licence, asking for later opening hours or taking premises where the location or proposed operation could attract closer scrutiny.
Using a specialist doesn't guarantee that a licence will be granted. That's always a decision for the Licensing Board.
But if the success of your restaurant or bar depends on getting the right licence and operating hours, we'd rather see someone who deals with Edinburgh licensing every day involved before you sign the lease rather than afterwards.
Planning and licensing are different things
This is another one that catches people out.
A restaurant having Class 3 planning use doesn't automatically mean you can sell alcohol.
Likewise, having a premises licence doesn't necessarily mean the planning position allows everything you're proposing.
Planning, alcohol licensing, late-hours catering, extraction, outside seating, signage and alterations can all be separate considerations.
That's why we'd rather understand the whole business at the beginning.
Tell us how you're actually going to operate
If someone tells us:
“I'm looking for a restaurant in Edinburgh.”
That's a start.
But we'd rather know they're looking for a 50-cover restaurant with a commercial kitchen and bar, that they want to sell alcohol until midnight and would ideally like some outside seating.
That tells us far more about whether a property is actually going to work.
The location and rent obviously matter, but so do planning, extraction, licensing, opening hours and neighbours.
A property can look perfect on a viewing and still be completely wrong for the business once you start working through those points.
That's better discovered before you've signed the lease.
IME has been dealing with commercial property in Edinburgh since 1994.
If you're looking for a restaurant, café or bar, tell us what you're planning and we'll help you look at properties that could genuinely work.
Looking for restaurant, café or bar premises in Edinburgh? Speak to the IME team.
Useful information
City of Edinburgh Council – Premises Licence
https://www.edinburgh.gov.uk/directory-record/1099573/premises-licence
City of Edinburgh Council – Personal Licence
https://www.edinburgh.gov.uk/directory-record/1099569/personal-licence
City of Edinburgh Council – Late Hours Catering Licence
https://www.edinburgh.gov.uk/directory-record/1099562/late-hours-catering-licence
City of Edinburgh Licensing Board
https://www.edinburgh.gov.uk/licences-permits/edinburghs-licensing-board
Scottish Government – Alcohol Licensing Guidance
https://www.gov.scot/publications/alcohol-licensing-guidance/
Important: This is a general guide rather than legal or licensing advice. Every premises and application is different. Licensing, planning and other requirements should be checked with the appropriate authorities and professional advisers before committing to premises.