UNIT 15: ON-LICENSED TRADE MANAGEMENT

UNIT 15: ON-LICENSED TRADE MANAGEMENT


















Unit 15:On-Licensed Trade Management
Unit code:A/601/1799
QCF level:5
Credit value: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.
  • 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.
  • Learning outcomes

On successful completion of this unit a learner will:
  • Understand key issues that impact on the licensed trade industry

  • Understand the effective development and operation of on-licensed premises


3     Be able to develop a merchandising and sales promotion strategy for on-licensed premises
  • Be able to evaluate the development of on-licensed premises.

UNIT 15: ON-LICENSED TRADE MANAGEMENT

Unit content
  • 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
  • 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
  • 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
  • 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

UNIT 15: ON-LICENSED TRADE MANAGEMENT

Learning outcomes and assessment criteria



































































































































































































Learning outcomesAssessment criteria for pass
On successful completion ofThe learner can:
this unit a learner will:
LO1 Understand key issues that1.1assess the economic, social and legislative pressures
impact on the licensed tradethat have created the present structure of the licensed
industrytrade and that might determine its future
1.2evaluate the impact of key issues on the licensed trade
industry, suggesting potential strategies for
management
LO2 Understand the effective2.1evaluate production and commercial areas, identifying
development and operationappropriate control systems
of on-licensed premises2.2discuss the constraints on development and operational
activities
2.3justify appropriate food, liquor and entertainment
products and services for a specific type of on-licensed
premises
2.4justify a staffing structure and training programme for a
specific type of on-licensed premises
LO3 Be able to develop a3.1justify a merchandising strategy for a specific type of on-
merchandising and saleslicensed premises
promotion strategy for on-3.2produce a sales development and promotional plan for a
licensed premises
specific type of on-licensed premises
LO4 Be able to evaluate the4.1discuss the product development area, design, systems
development of on-licensedand financial investment
premises4.2evaluate 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

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