Coming together over food is a huge part of South African culture, whether it be in the family home over a meal lovingly prepared, a gathering of friends enjoying a braai, or a group enjoying a culinary experience at their favourite restaurant. For many, their love of food extends to buying and running restaurants.
To serve alcohol in your establishment, it is essential to have a valid liquor licence. The process of obtaining a liquor licence can be tedious, leading many to ask the question: Can you buy an existing restaurant with a liquor licence in South Africa? Leon Slotow Associates, a top liquor licence consultant in South Africa, shares what you need to know about transferring liquor licences in South Africa.
Can a Liquor Licence Be Sold?
Often, buyers of an established restaurant seek to buy the liquor licence for the premises at the same time. A liquor licence can be sold, but it cannot be moved as it is tied to the specific premises for which it was originally issued. Meaning, a business with a liquor licence can be sold, provided the business remains on the same premises. This is only possible if the liquor licence is transferred to the purchaser.
In other words, a keen restaurateur could purchase an existing restaurant and transfer the licence into their own name and continue running the restaurant and selling alcohol. They would not be allowed to purchase the business and move it to another location without applying for a liquor licence at the new location.
Selling a licence itself without a business or premises should never be considered. As a buyer it is critical to ensure that the liquor licence is current and valid and that the existing licence holder is available for signature. In the event that a restaurant is bought with the intention of moving it to a new location, an entirely new liquor licence should be obtained through the correct application process.
Can a Liquor Licence Be Leased or Rented?
There are some instances in which a budding restaurant owner is not looking to purchase a restaurant outright and would prefer to lease it along with the relevant liquor licence. In this case, the licence would remain in the landlord’s name. This may seem practical and make the leasing process simpler, but it is absolutely not allowed according to the law.
The Liquor Act 59 of 2003 specifically prohibits the sale of liquor unless they hold a licence authorising them to do so. In other words, the person selling the liquor must be the holder of the liquor licence. If someone were to lease a restaurant to run as their own, they would need to go through the correct process to apply for and obtain a liquor licence in their own name. Obtaining a liquor licence can seem complex or intimidating. Working with a reliable liquor consultant can make the process go as smoothly and quickly as possible. At Leon Slotow Associates, we are experts in all things liquor licences and can help ensure you obtain your restaurant liquor licence in South Africa quickly and without headaches. To ask any questions about liquor licences or enquire about our services, don’t hesitate to get in touch.
