Liquor primary and food primary licences

Buyers of British Columbia bars and restaurants meet these two licence classes in the Liquor Control and Licensing Regulation (B.C. Reg. 241/2016). Each class carries its own rules and requirements under the regulation, so the class is part of what is being bought.

How the two classes differ

Section 9 says a liquor primary licence authorizes the licensee to sell drinks containing liquor to patrons in the service area under the licence, and section 10 requires, among other rules, that the establishment not be a facility directed at or frequented predominantly by minors, or a motor vehicle, though s. 10(2) disapplies those rules for a catered event under a catering authorization. Section 16 says a food primary licence authorizes those sales when the primary purpose of the business carried on in the service area is the service of food, and section 17 says the general manager must not issue, renew, transfer or amend one unless satisfied that this will be the primary purpose when liquor is being sold or served. Section 19 lists what the general manager may consider, including the menu, hours of operation, financial records and the ratio of food receipts to liquor receipts. On minors, section 78 of the Liquor Control and Licensing Act says a minor must not enter or be in a service area except as provided by the terms and conditions of a licence, authorization or permit, the regulations, or with other lawful excuse. This entry covers British Columbia only.

What to ask in a deal

• Which class the licence is, and any terms or endorsements attached to it.
• Whether the way the business actually operates still fits the purpose its class requires.
• How a transfer of the licence is handled by the provincial regulator.
• See whether a liquor licence transfers on a sale and licensed capacity and patio endorsement.