QHA_February_Mag_Web

INDUSTRY ENGAGEMENT
with Damian Steele
POP-UP EVENTS AND VENUES GIVEN AN EASY RIDE
THERE IS A GROWING CONCERN REGARDING THE SUBSTANTIAL INCREASE IN THE NUMBER OF LICENSED MUSIC
FESTIVALS AND EVENTS, INCLUDING POP-UP STYLE FOOD AND BEVERAGE OFFERINGS.
QHA REVIEW | 36
There are over 100 various festivals approved
throughout Queensland annually as well as an
explosion in the number of pop-up style markets, food
trucks and similar events.
There are a range of issues which have been identified
by Queensland hoteliers, including but not limited to:
• The relative differing degree of compliance and
accountability for these types of events compared
to trading activity on licensed premises and the
seeming lack of regulation enforcement and
accountability.
• The financial impacts on trade - not merely the
direct spend loss of business competition, but
the inequities of competing against festivals that
are operating in an environment free from annual
liquor licensing fees and free from any potential
compliance history licence fee penalty burdens,
free from ongoing compliance costs as well as
administrative responsibilities, and with no
ongoing requirements for maintaining appropriately
licensed staff.
• The negative perceptions of the community and
media towards alcohol and thereby by default
to the hotel sector, generated by anti-social or
illegal behaviour at these festivals and into their
surrounding areas.
• Issues derived from problem patrons “inherited”
after these events around licensed premises, and
any subsequent incidents then being attributed
back to the local hotel.
Further, expenses such as rent and long term
employee costs are often non-existent. It’s
understandably frustrating for an established hotel
business to sustain itself and employees through the
lean times – only to find a pop-up competitor appear
during a peak period which should be their time to
capitalise on trade.
In short, the beneficiaries of these one-off hit and run
events and pop-up businesses scoop the cream off
the top without the need to invest in the protection of
a venue’s reputation and the protection of its liquor
licence and all the compliance that entails. There is a
definite perception that these festival events and similar
pop-up food and beverage operations enjoy a more
relaxed degree of regulatory scrutiny and accountability
compared to established hotel businesses’ onpremise
activity. For example, there have been
numerous arrests in all states for anti-social and drug
related offences at music festivals, yet it’s difficult to
rationalise the limited degree of accountability for the
organisers and operators compared to the numerous
and ongoing liquor licence conditions and compliance
requirements attached to a commercial hotel.
A hotel’s liquor licence is one of its most valuable
assets. It underpins any gaming approvals and
the core business offerings of food, beverage and
entertainment -and it provides the greatest incentive
for conducting responsible and compliant business.
The hoteliers of Queensland are committed to the long
term, not simply to a pop-up for a big day out.
IT’S UNDERSTANDABLY FRUSTRATING FOR AN
ESTABLISHED HOTEL BUSINESS TO SUSTAIN ITSELF
AND EMPLOYEES THROUGH THE LEAN TIMES – ONLY
TO FIND A POP-UP COMPETITOR APPEAR DURING
A PEAK PERIOD WHICH SHOULD BE THEIR TIME TO
CAPITALISE ON TRADE.