How long can unlicensed Innsatiable last?

A leather sofa, a beer mat and a pint of beer — a picture of a lovely pub with a log fire, the kind one would normally visit in the Derbyshire Dales and not the high-profile premises exercising the minds of licensing academics over the past month or so.

Readers won’t have failed to notice the ‘furniture shop’ set up by owner Simon Atkins in Farnham, Surrey, where one can go in, look at the furniture and, Mr Atkins claims, the alcoholic drinks are “free”, although you are “encouraged” to purchase a beer mat with your drink. You don’t have to buy a beer mat, he claims, and therefore the alcohol is genuinely free of charge. However, one of the reporters from the Publican’s Morning Advertiser was told when she visited that she was the first customer not to purchase a beer mat.

If the alcohol being supplied is genuinely free, then no premises licence is required. A premises licence is only required under the Licensing Act 2003 where there is a “retail sale” of alcohol. If the provision of the alcohol is dependent upon paying money, say for a beer mat or something similar, or for the opportunity to look at the furniture, then this would be an indirect sale and would still be unlawful unless permitted by a premises licence.

Viable proposition​
What is the real aim behind Innsatiable? It’s reportedly the first of a number of furniture stores that are going to be rolled out across the country operating in a similar way. If the intention is genuinely for people to look at the furniture and they can have a drink free of charge, then fair play, no licence is needed.

There are similar scenarios where no licence is required, such as a hairdresser’s where customers are treated to a glass of Champagne, no charge is made for the alcohol and the price of the haircut is not increased to reflect that of the drink. Some clothes stores have a fridge with alcohol in it and will, on occasion, treat customers to a drink, again completely free of charge and without any commitment to purchase anything.

Time will tell, however, and when people become ‘savvy’ to the fact that you can simply go in and have a free drink, then how long will Innsatiable be a viable business proposition? What is to stop the disgruntled publicans in Farnham sending their locals in to sample the drinks on offer free of charge. Will the queues of people expecting a free tipple extending to Guildford be turned away or each given an alcoholic drink free of charge?

There are worrying consequences to alcohol being supplied in premises that have no authority to do so under the Licensing Act 2003. It would be legal for a child between five and 18 to go into the premises and either buy or consume alcohol with no comeback, either against the operators of Innsatiable, or any adult who was with them at the time. This is because the legal restrictions on children over the age of five either purchasing or consuming alcohol only relate to premises that are governed by an authorisation granted under the Licensing Act 2003.
There are no safeguards to promote any of the four licensing objectives that can be enforced. So, for example, while Mr Atkins says the premises has a CCTV system, if it stopped working there is no mechanism for the authorities to insist that it is repaired. There could be no review proceedings brought against the premises because there is no licence in force to review.

Licensable activity​
So what action is open to the authorities? Where a police officer or licensing officer from the licensing authority has reason to believe that premises are being “used for a licensable activity” they may enter the premises to ascertain whether or not a licensable activity, ie the sale of alcohol, is being carried on. If the police or licensing officer has evidence that alcohol is being sold, then it would be open for them to serve a closure notice on any person who has control of, or responsibility for, the sale of alcohol at the premises.

The closure notice would require the ‘sale’ to cease. If it does not cease then it would be open for either the police or licensing authority to apply to the magistrate’s court no less than seven days and no more than six months after the original closure notice had been served for a closure order. The magistrate’s court can order that the premises be closed to the public and not just for the sale of alcohol. This may be the only recourse open to the police and licensing authority if there is any question as to whether or not there is the ‘sale’ of alcohol taking place at the premises, other than a time-consuming and costly prosecution for ‘selling’ alcohol without authorisation.

Let us see if Innsatiable can carry on when customers are queuing out of the door to get their free drink(s) and don’t wish to pay for a beer mat for the privilege. Either furniture sales will have to go through the roof or one can see Innsatiable simply being a flash in the pan. It does beg the question: why not just apply for a premises licence, Mr Atkins?