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Unit 15:
On-Licensed Trade Management
Unit code:
QCF level:
Credit value:
  • 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 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
  • 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
Assessment criteria for pass
On successful completion of
The learner can:
this unit a learner will:
LO1 Understand key issues that
assess the economic, social and legislative pressures
impact on the licensed trade
that have created the present structure of the licensed
trade and that might determine its future
evaluate the impact of key issues on the licensed trade
industry, suggesting potential strategies for
LO2 Understand the effective
evaluate production and commercial areas, identifying
development and operation
appropriate control systems
of on-licensed premises
discuss the constraints on development and operational
justify appropriate food, liquor and entertainment
products and services for a specific type of on-licensed
justify a staffing structure and training programme for a
specific type of on-licensed premises
LO3 Be able to develop a
justify a merchandising strategy for a specific type of on-
merchandising and sales
licensed premises
promotion strategy for on-
produce a sales development and promotional plan for a
licensed premises
specific type of on-licensed premises
LO4 Be able to evaluate the
discuss the product development area, design, systems
development of on-licensed
and financial investment
evaluate the project against original objectives, targets,
timescales and resources to be used
This unit links learners’ knowledge and understanding of the licensed trade sector of the hospitality industry with several other units in the programme, notably: