UNIT 15: ON-LICENSED TRADE MANAGEMENT

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LO1 Understand key issues that impact on the licensed trade industry Brewing and the
licensed
trade: economic, social and legislative history Agreements: freehold; leasehold; tenancy Types
of licensed premises: family; themed; community; country; town houses; branded pubs including
franchises Future developments: national; EU influences Industry challenges/issues: the health
agenda; responsible retailing; anti-alcohol lobby; smoking ban; violence; ethics; social
responsibility; alcohol related disorder; gambling; pub closures; sustainability and the
environment
LO2 Understand the effective development and operation of on-licensed premises
Design: interior and exterior design, ergonomics, customer and workflow, economic use of
space, provision for family areas (indoor/outdoor) Regulatory constraints: licensing law; health
authorities; the police; planning authorities; licensing justices; weights and measures; safety;
risk analysis Profitable product development: food; liquor; games; Amusement with Prizes
(AWP) and Amusement with Skills (AWS); profit and loss statement analysis Stock and cash
security: Electronic Point of Sale (EPOS) systems; associated integrated software and paper
systems; the prevention of fraudulent practices; till security; security of cash on premises and
transference Staffing: structures; recruitment; training; retention; outstanding performance; best
practice and successful units; the role of area management
LO3 Be able to develop a merchandising and sales promotion strategy for on-licensed
premises Marketing skills
application: market research; Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis;
trend identification such as changing consumer needs, product/brand life cycle; communication
of the value proposition; keeping and growing the customer base; the role of innovation;
relevance of existing business models; sourcing strategies; effective management of the food
safety risk; target market identification; market penetration Sales: merchandising and
promotional activities; Point of Sale (POS) materials; back bar design; increasing turnover
UNIT 15: ON-LICENSED TRADE MANAGEMENT

LO4 Be able to evaluate the development of on-licensed premises Development

project: negotiate and agree with relevant people a development project; company orbrewer;
objectives; targets; timescales; resources to be used Focus: food; beverage; entertainment
(consistent with target market) Design: eg internal, external, current regulatory constraints
Systems: staffing structure; personnel policies; stock and cash control systems Financial
investment: types eg wholesale and incremental project analysis, retail and operating cost
analysis, Return on Capital Employed (ROCE), payback, discounted cash flow, yield Evaluate:
types of activities undertaken; techniques used; interpersonal relationships; benefits; difficulties;
objectives; timescales; resources; feedback to owner/manager
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UNIT 15: ON-LICENSED TRADE MANAGEMENT
Learning outcomes and assessment criteria
Learning outcomes
On successful completion of this unit a learner will:
LO1

Understand

key

issues

that

impact

on

the

licensed

trade

industry

Assessment criteria for pass

The learner can:
1.1 assess the economic, social and legislative pressures that have created the present
structure of the licensed trade and that might determine its future
1.2 evaluate the impact of key issues on the licensed trade industry, suggesting potential
strategies for management
LO2 Understand the effective development and operation of on-licensed premises
2.1 evaluate production and commercial areas, identifying appropriate control systems
2.2 discuss the constraints on development and operational activities
2.3 justify appropriate food, liquor and entertainment products and services for a specific type of
on-licensed premises

2.4 justify a staffing structure and training programme for a specific type of on-licensed premises
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LO3 Be able to develop a merchandising and sales promotion strategy for onlicensed
premises
3.1 justify a merchandising strategy for a specific type of onlicensed premises
3.2 produce a sales development and promotional plan for a specific type of on-licensed
premises
LO4 Be able to evaluate the development of on-licensed premises
4.1 discuss the product development area, design, systems and financial

investment

4.2 evaluate the project against original objectives, targets, timescales and resources to

be

used
UNIT 15: ON-LICENSED TRADE MANAGEMENT
Guidance
Links
This unit links learners knowledge and understanding of the licensed trade sector of the
hospitality

industry

with

several

other

units

in

the

programme,

notably:

Unit 8: Marketing in Hospitality Unit 12: Hospitality Operations Management Unit 18: Facilities
Operations and Management.This unit links to the following Management NVQ units:
B1: Develop and implement operational plans for your area of responsibility
B2: Map the environment in which your organisation operates
B3: Develop a strategic business plan for your organisation
B4: Put the strategic business plan into action
B8: Ensure compliance with legal, regulatory, ethical and social requirements
D4: Plan the workforce
D7: Provide learning opportunities for colleagues
E1: Manage a budget

E2: Manage finance for your area of responsibility

E6: Ensure health and safety requirements are met in your area of responsibility
E7: Ensure an effective organisational approach to health and safety
F1: Manage projects
F2: Manage a programme of complementary projects
F3: Manage business processes
F4: Develop and review a framework for marketing.
Essential requirements
Access to a sufficient number of commercial operations premises is essential. These premises
must provide access to the latest ICT capacity supporting the licensed trade industry. Trade
journals and newspapers must be made available to all learners.Employer engagement and
vocational contextsThis unit lends itself to the development of a dynamic partnership between
business and the education provider. Local employers should be encouraged to become
involved in providing appropriate case study material and, where possible, to do so by mentors
doubling as assessors. This will help to create realistic scenarios and strengthen employer
engagement with the programme overall.
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