UNIT 15: on licensed trade management

UNIT 15: ON-LICENSED TRADE MANAGEMENT
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Unit 15:
Unit code: QCF level: Credit value:
On-Licensed Trade Management
A/601/1799 5 15

Aim

This unit enables learners to understand the current standing of the UK on-licensed retail trade industry so they can effectively apply management skills to developmental and operational issues.
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Unit abstract

This unit will allow learners to simultaneously examine this specialist industry and to apply the principles, knowledge and techniques, learned in other units, to its unique situation. The unit gives learners both the theoretical and practical skills required to pursue a career in the licensed trade. Learners will explore the current structure of the licensed trade, covering different types of agreements and licensed premises. They will examine issues relating to the development and operation of licensed premises as well as aspects of applied marketing. Learners will then undertake and review a case study based on a local operation and provide feedback to the owner/manager.

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Learning outcomes
Understand key issues that impact on the licensed trade industry Understand the effective development and operation of on-licensed premises Be able to develop a merchandising and sales promotion strategy for on-licensed premises Be able to evaluate the development of on-licensed premises.

On successful completion of this unit a learner will:

Unit content

1. 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

2. 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

3. 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

4. Be able to evaluate the development of on-licensed premises Development project: negotiate and agree with relevant people a development project; company or brewer; 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

 Learning outcomes and assessment criteria

Learning outcomes
Understand key issues that impact on the licensed trade industry Understand the effective development and operation of on-licensed premises Be able to develop a merchandising and sales promotion strategy for on-licensed premises Be able to evaluate the development of on-licensed premises.

On successful completion of this unit a learner will:

Assessment criteria for pass
LO1 Understand key issues that impact on the licensed trade industry

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   UNIT 21: Small Business Enterprise


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

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 contexts


This 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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